Pyramid Comment

This journal takes an alternative view on current affairs and other subjects. The approach is likely to be contentious and is arguably speculative. The content of any article is also a reminder of the status of those affairs at that date. All comments have been disabled. Any and all unsolicited or unauthorised links are absolutely disavowed.

Sunday, May 20, 2007

Train Fare Price Hike

There is more than one way to consider price rises on trains. The price rise will alienate passengers, thereby ensuring the continuation of a downward spiral to profits. Illogical perhaps for a commercial business. But this could be the intention. By driving passengers off the services in this way it reduces the congestion at peak periods and removes the need to review the shambles of services. Overcrowding, services cancelled and so on.

This represents a trade-off between less revenue and reduced investment. Probably, the calculation has been done and the result is that the proposed action minimises losses. Quite mad, of course. But this depends on where you place yourself. As a passenger who uses the service it is madness. As an observer it is madness. As an executive who expects a good bonus, pension etc, it sounds like good business. There will be more cash available the less that is spent on providing a service.

What fun the board meetings must be.