(11 Aug 2016, 6:49 pm)Andreos1 wrote Even the most savvy financial director will have financed that in to any contract/bid...
Forecasts will have been planned both on income and expenditure, in addition to passenger numbers way back when they went for the contract - regardless of any new rolling stock.
New rolling stock, will (or should have), been factored in to that bid. It hasn't just sneaked up on them.
Aye. They know exactly what they're bidding for, as it's all in the tender documentation and then again in the contract they sign. The problem is that a lot of companies, as they're competing to be the most economically advantageous (or cheapest!), will pitch at a loss. They will instead forecast to make a profit through incentives offered in the contract.
I've absolutely no sympathy for them.