The Department for Transport (DfT) wants to introduce dynamic budget airline-style pricing as a means to lower fares and help restore passenger numbers. Treasury officials are understood to be blocking the plan amid fears it could increase the approximate £11 billion annual cost to the taxpayer of subsidising the rail network. They want to cut rail network costs instead, but critics say this would cause a spiral of lower passenger numbers and revenues, The Times reports. The proposals which the DfT are backing are under demand-led pricing, which businesses such as hotels and budget airlines utilise. Meanwhile, passenger revenue was £2.2 billion, 70% of the £3.2 billion four years ago.

Source: The Times June 27, 2023 07:05 UTC