The previous CEO Mr Søren Eriksen was fired earlier this year after an
accounting report found criticisable trading practices between DSB and
the DSBFirst joint venture, which operates the Øresund network. The
allegations concerned the servicing of DSBFirst rolling stock by DSB
which was not charged for. On Tuesday, a day after it announced annual
losses of DKr 582m ($US 113m), DSBFirst revealed it would cede its
Swedish operations to another operator from December 10 this year to
avert bankruptcy. According to accountants KPMG, DSBFirst would have
needed extra capital amounting to DKr 1.5bn to continue operating in
its current form.
accounting report found criticisable trading practices between DSB and
the DSBFirst joint venture, which operates the Øresund network. The
allegations concerned the servicing of DSBFirst rolling stock by DSB
which was not charged for. On Tuesday, a day after it announced annual
losses of DKr 582m ($US 113m), DSBFirst revealed it would cede its
Swedish operations to another operator from December 10 this year to
avert bankruptcy. According to accountants KPMG, DSBFirst would have
needed extra capital amounting to DKr 1.5bn to continue operating in
its current form.
"We have avoided a threatening bankruptcy which would have plungedcustomers, employees, and suppliers into an almost chaotic situation,
and the agreement is finically the best possible solution to a
difficult situation for DSB," says acting DSB CEO Mr Klaus Pedersen.
According to DSB, Øresund passengers can expect better departure times,
and the likelihood of increased frequencies to avoid customer criticism
of overcrowding.
The problems with DSBFirst prompted Danish transport minister Mr
Christian Schmidt to ban DSB from bidding for more local contracts
outside Denmark.
Christian Schmidt to ban DSB from bidding for more local contracts
outside Denmark.
