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Ailing Southern Railway to receive £20m government aid package

Transport firm Go-Ahead said its profits leapt nearly 27% to £99.8m ($132.5m) in the year to 2 July, after seeing record rail passengers across its franchise and hitting record earnings at its bus division.

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Aslef was balloting drivers at Southern Railway and the Gatwick Express, owned by Govia Thameslink Railway, over claims of a breakdown in industrial relations.

Chris Gibb, who has worked in the rail industry for more than 35 years, will head a new project board working with the train operator, the Department for Transport and Network Rail, to rapidly improve to services for the public.

Transport Secretary Chris Grayling said: “I want the Southern network to be run by a team of people who work together to make sure passengers get decent journeys and that problems are dealt with quickly”.

‘This profit announcement comes just a day after the Government propped up Southern with yet another £20m of taxpayers cash.

“The reaction to the cancellations, delays and poor service from both Southern and the Government has been wholly inadequate”. “With £20 million of taxpayer’s money going in to prop up this failed franchise, no wonder Southern passengers are at their wits end”, he added.

On Tuesday Southern announced it would reinstate more than a third of some 341 cancelled services next week following the introduction of an emergency timetable in July.

Southern faces strikes next week in separate disputes over ticket office closures and the long-running row over the role of conductors.

“The separate dispute on the Southern section of GTR over guards and safety remains unresolved and the strike action involving our members next week goes ahead as planned”.

Mick Cash, Rail, Maritime and Transport (RMT) union general secretary, said: ‘While Go-Ahead have been driving Britain’s biggest rail franchise into total meltdown, the cash has been sloshing through the boardroom at obscene levels. “This is reward for total failure on a scale which is off the map”, Cash said in a statement.

“The leverage from the vote for strike action has been pivotal in securing the package of measures that will protect jobs, safety and the services we deliver to the travelling public. It’s completely unacceptable they’re paying massive dividends to shareholders while Croydon residents suffer”.

He said: “I urge the industry, the train operating company and unions to work together to improve services for passengers”. “But with another RMT strike called for next week, passengers will be dismayed and angry, as we are, that the union has called yet further cynically orchestrated action to try and scupper this improved service and cause maximum disruption, damage and delay in the very week when many people go back to work and back to school after the summer break”, he said.

Mr Brown apologised “to the people whose lives have been affected during this time”.

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“As a result, David Brown, who in my view is an exceptional and committed group chief executive, made it clear he does not wish to be considered for an annual bonus this year and declined a salary increase”.

Southern Railway to reinstate 119 daily train services on September 5