Anthony Smith, chief executive of campaign group Transport Focus, said: “Passengers will be wondering where their dividend is”.
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Speaking on a visit to Croydon this morning, Mr Khan said it was “disappointing the government have rejected my offer” and described Southern as an “embarrassment to London”.
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.
“With Network Rail committing £20 million to address infrastructure issues on this part of the network announced this week, we expect to see positive changes as the company continues to strive to deliver more reliable train services in the face of unjustified industrial action”.
The transport giant behind troubled Southern rail is facing fresh demands for it to be stripped of control of the franchise after it unveiled a steep rise in profits to almost £100m and its boss walked away with a £2.2m pay package.
Rail, Maritime and Transport (RMT) union general secretary Mick Cash said the profit surge at Go-Ahead was “reward for total failure on a scale which is off the map”.
“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”.
Phil Hufton, Network Rail’s managing director for England and Wales, said: “We are committed to working closely with GTR to improve overall performance”.
He said: “Yes, we make a profit, we are a PLC, of course I’m here to make profits”.
Louise Ellman, who chairs the Transport Select Committee, welcomed the news, adding: ” The passengers who use this line day in, day out are entitled to feel angry.
Govia Thameslink Railway (GTR), which is 65 percent owned by Go-Ahead alongside France’s Keolis and operates Southern, has faced widespread criticism from passengers, politicians and the media after months of strikes, cancellations and delays on trains into London.
Earlier this month, Mr Corbyn directly addressed the concerns of passengers on the Southern network.
Mick Whelan, general secretary of train drivers’ union Aslef, said: “This is like living with Alice in Wonderland”.
“Morale among staff – the men and women who work hard, who take real pride in their job, and who want to deliver a first-class public service but are prevented by the hapless management at Southern – is, not surprisingly, at rock bottom”.
There will be new public funding for Southern worth £20 million, which will mainly pay for better train maintenance, more staff at key stations and additional rapid response teams to deal with breakdowns.
The announcement comes just days before a planned two-day strike by unions next week over the changing role of conductors.
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But a 48-hour strike on Wednesday and Thursday on the Southern part of the franchise, over the role of guards, will go ahead.
