// GTR’s (the Company running the service) turnover amounts to some £1.3 billion, with just over 90% of that coming from the fee, paid by the Department for Transport, for running the franchise. The amount of fine—it is really difficult to drill down into exactly how much fine it has paid—seems to be about £2 million. Less than 0.2% of its annual revenue. //
Perhaps if the fines were higher, and affected the company's profits more significantly, there would be an incentive to sort out the strike and the resulting appalling service.
Also, the Souther franchise is unique in the country. There is not another like it. All the money from fares does not go to the company, it goes directly to the Department of Transport. That means that the strike, and the loss of revenue does not affect the company at all, it is a loss to us the taxpayer. In fact less customers means they don't have to work so hard for their huge fee from the Government. That contract accounts for why Southern aren't really that bothered by the strike, and why it is in no hurry to resolve it.
The Franchise should be retendered, and a proper contract written were the operator suffers the loss of revenue, not the taxpayer.