New lesson for UK Rails

Added: (Mon Jan 09 2012)

Pressbox (Press Release) - Fyra, which is a hi-speed train service which started in recent years in the Netherlands is struggling a lot due to financial crises. According to the authorities this services is going to shut down in few days as passengers do not prefer to make journey with it due to the high fares and inconvenient services. This service is having high losses on the continuous basis which is worsening the situation of this company day by day.
This line was established two years back and around £7 billion was invested for the establishment of this service but since it had started its operations it is running continuously in the losses and according to the recent estimates the daily loss the operator is suffering amounts to around £320,000.
According to the Rikus Spithorst, who is a spokesperson of VBOV “The high-speed line has been a very, very bad result for taxpayers and passengers”. He also said that “The taxpayer paid for it and the idea was that the money would come back from the train company. But that isn’t going to happen.”
The Dutch infrastructure minister, Melanie Shultz van Haegen, announced the bailout late last year after the line’s operator, High Speed Alliance, ran up a debt of Euro 2.4 billion (£2 billion).
She also said that due to these devastating figures of the losses the action on the part of the government is becoming necessary.
The failure of this service can be the result of the mismanagement and high fares for the services which forced the passengers to travel with the alternative train operators and these types of things should be prevented by the government in the future as there is huge investments made in these types of projects which normally includes the money of the common man and this types of failures can cause grievances in the mind of people.