Go-Ahead trading in line after Southern dispute ends

Go-Ahead said it was trading as expected in the first four months of this year as the bus and rail operator sought to put a long-running industrial dispute behind it.

Business in the four months to 28 October was in line with management expectations, Go-Ahead said in a trading update. Bus revenues were unchanged after it lost some "small" contracts in London. Train revenues rose 2.5% despite a 1% fall in passenger journeys.

Go-Ahead's rail division operates the Southeastern, London Midland and GTR franchises through its Govia joint venture with France's Keolis. Its contract to run London Midland will end on 10 December.

GTR, Britain's biggest rail franchise, includes Southern, which runs from London to Brighton and other south coast stations. The network was hit by delays, cancellations and strikes during a two-year dispute with the Aslef union over pay and changes to the role of conductors. The dispute was settled when drivers were awarded a 28% pay rise over five years.

Under plans announced by the transport secretary, Chris Grayling, GTR could be split up. Go-Ahead said reliability had increased on the Southern network since industrial action cooled off in January and that it looked forward to finding out more about the government's plans for rail.

The company said: "Earlier in the month, we were pleased that Aslef members ended their industrial dispute. GTR's management team can now solely focus on improving performance levels for our customers."