(Sharecast News) - Britain's opposition Labour Party has no plans to revive government plans to introduce a national rail ticket website and app if it wins the next General Election, online platform Trainline said on Friday.
Trainline last week hosted Labour's launch of its policy proposal to bring private rail operators back under public ownership and create a centralised body called Great British Railways. The news actually sent shares in the online ticketing platform 10% lower.
"However, they have confirmed to Trainline that they have no plans to revive the current government's previous proposal for a national retailing website and app. They also announced plans to accelerate the roll out of key customer innovations, including automated Delay Repay and digital season tickets," the company said when publishing its annual results on Friday.
Labour leads the ruling Conservative Party by 20% in opinion polls, with a General Election that must be held by the end of the year.
The Tories abandoned yet another policy last December when the Department for Transport canned plans to create a Great British Railways ticketing website and app, sending Trainline shares to a yearly high at the time.
In an unexpected release, the DfT announced it was pulling the proposals first outlined in May 2021. Trainline had faced growing investor concern regarding the potential emergence of a new, online retail competitor in the UK, with its 62% market share under threat, according to analysts at JP Morgan.
"The proposed withdrawal removes a key overhang to Trainline's investment case, where building investor concerns have been around changes in UK rail regulation (a new GBR app) which drove a de-rating relative to classified peers, and overshadowed strong passenger momentum and improved operational delivery, in our view," the bank said last year.
Reporting by Frank Prenesti for Sharecast.com
Trainline (TRN)
