20th May 2021 14:34
(Alliance News) - Trainline PLC on Thursday said new UK government proposals presents a chance to "innovate", despite the ticketing platform's shares tumbling following news of railway industry reform.
Trainline shares were 22% lower at 333.92 pence each in London on Thursday.
The creation of a new public sector body to oversee Britain's railways will simplify a system that is "too complicated", UK Transport Secretary Grant Shapps said. Great British Railways will own and manage rail infrastructure, issue contracts to private firms to run trains, set most fares and timetables, and sell tickets.
The move poses a direct threat to Trainline which operates an online platform for train tickets and railcards.
However, Trainline on Thursday afternoon responded by saying the plan is in line with its expectations and it is supportive of it.
"The company believes the proposals will provide Trainline with new opportunities to innovate for the benefit of customers and further grow its business," the company said.
"Trainline expects that the plan's proposals, which will need to be developed and subsequently implemented over the next several years, should improve the experience for rail passengers and drive efficiency for the wider industry."
Great British Railways will absorb Network Rail in a bid to end what the UK Department for Transport branded a "blame-game system" between train and track operations when disruption occurs.
The Williams-Shapps Plan for Rail has been published as a white paper.
It is based on the recommendations of a review of the industry carried out by former British Airways chief executive Keith Williams following the chaotic introduction of new timetables in May 2018.
Trainline CEO Jody Ford said: "Trainline has a long track record in leading the way on innovation in the sector and Keith Williams highlighted Trainline as an important innovator and partner for the rail industry when he initially announced the direction of the review.
"We are hugely encouraged by the commitment to digital ticketing, which Trainline has championed over the last several years, and the introduction of flexi tickets and digital season tickets which will provide new growth opportunities in the evolving commuter market."
The plan was initially due to be published in autumn 2019 but was delayed by the general election and the coronavirus pandemic.
UK Prime Minister Boris Johnson said: "I am a great believer in rail, but for too long passengers have not had the level of service they deserve.
"By creating Great British Railways, and investing in the future of the network, this government will deliver a rail system the country can be proud of."
GBR is not expected to be established until 2023.
By Eric Cunha; [email protected]
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