European private passenger operators: subsidized?

[SouthernRailway]

The most recent Trains magazine has an article about European private passenger train operators around the European Union. The trains range from budget trains with older equipment to new trains with high-speed equipment.

Question: are these private operators running trains for their own profits from ticket revenues alone? Or do they just bid for contracts to operate the trains, with public subsidies? I assume the latter, but the article didn't cover that topic.

Thanks.

[DutchRailnut]

no these operators get same subsidy the original carrier received. even in Europe passenger railroads loose money.

[JayBee]

I haven't seen the Trains article cited, but the situation is this, private operators who operate upscale services on certain specific routes can make money, then there are private companies who operate commuter trains under contract to regional or national governments, they make a profit by operating subsidized trains at a lower cost than the national railway could. As an example of a profitable private railway operator, Virgin West Coast Rwy in the UK. It is the only franchised operator in the UK which makes a profit. The franchisee which would operate the East Coast service in the UK could also potentially turn a small profit. There are also two small operators which receive no subsidies, but they operate in two very small very specific markets, not well served by the bigger franchised and subsidized companies. The UK has the highest per mile fares in Europe, which is part of the reason it is possible for a careful operator to make a profit in a carefully chosen market.

Elsewhere in Europe there are private passenger operators who receive no subsidy and compete against the National Railway in Italy, Austria, Germany, and the Czech Republic. The results have been mixed some have managed to make a consistent albeit usually small profit, others haven't yet made a profit but hope to do so with tweaks to their operating model. NTV (Nouvo Transporto Viaggiatori SpA) is the most well known. http://www.ntvspa.it/en/" onclick="window.open(this.href);return false;

[ExCon90]

However, I believe that in all cases, "cost recovery" refers to operating costs; capital investments, and perhaps even current maintenance, depending on circumstances, are not recovered by most operators of passenger service.

[dowlingm]

This might be helpful
http://en.wikipedia.org/wiki/Public_ser ... pean_Union" onclick="window.open(this.href);return false;

[JayBee]

However, I believe that in all cases, "cost recovery" refers to operating costs; capital investments, and perhaps even current maintenance, depending on circumstances, are not recovered by most operators of passenger service.

Take NTV in Italy, the Capital Cost is for the Alstom AGV Trainsets, maintenance of the Trainsets is purchased under contract from Alstom, Track usage and station usage are paid for per use, so most of their costs are operating costs. They have personnel costs for the usual clerical and managerial functions. The Electricity to power the trains is based on the actual meter reading on the Trainsets and takes into account the electricity fed back into the system when in regenerative braking.