Whilst looking at the Go ahead shareholder website, I stumbled across the third quarter trading update.

It makes interesting reading (with references to NE bus operations), but the section about integration of Southern and the Gatwick Express into GTR caught my attention.

As well as currently receiving revenue support, the following jumped out:

As previously reported, GTR has faced inherited long term operational challenges since the franchise began in September 2014. In addition to this, the operating network has changed compared to that anticipated in the bid, resulting in incremental costs. As a result of these changes, GTR will employ the normal industry contract remedies to help mitigate these costs over time. This may lead to lower margins in the short term but any shortfall in profit is expected to be recoverable over the life of the franchise.

A consultation process in connection with the integration of Southern into the GTR franchise began in the third quarter which is expected to result in an exceptional charge of between £7m and £10m in redundancy costs in the full year.

Source: http://m.go-ahead.com/media/news/2015-ne...-2015.aspx