CMA Considers Fare Controls on FirstGroup's London-Exeter Line

FeaturesDow Jones Newswires

The U.K. Competition and Markets Authority Wednesday said it is considering fare controls on the London to Exeter rail line because the franchise has been awarded to FirstGroup PLC (FGP.LN) and MTR Corp and FirstGroup already operates the other franchise operating between the two cities.

"As the only operator running rail services between the 2 cities, the CMA found that FirstGroup could potentially take advantage of the reduction in competition to increase fares for the half a million passengers a year who use the route," the CMA said.

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FirstGroup also operates the Great Western Railway (GWR) franchise which includes the London to Exeter route.

-Write to Rory Gallivan at; Twitter: @RoryGallivan

(END) Dow Jones Newswires

July 19, 2017 03:15 ET (07:15 GMT)