The company was set up in 2007 as a joint venture between Renaissance
Trains and Laing Rail, which was subsequently taken over by German Rail
subsidiary DB Regio. Services were launched in December 2008 with five
trains per day linking London with Wrexham with a journey time of
almost four hours. However just four months later, feeling the impact
of the economic downturn and a faster competing service to Wrexham
launched by Virgin Trains, W&S reduced the timetable to four return
workings.
Trains and Laing Rail, which was subsequently taken over by German Rail
subsidiary DB Regio. Services were launched in December 2008 with five
trains per day linking London with Wrexham with a journey time of
almost four hours. However just four months later, feeling the impact
of the economic downturn and a faster competing service to Wrexham
launched by Virgin Trains, W&S reduced the timetable to four return
workings.
DB Regio merged W&S into its Chiltern Railways operation last year,but the service continued to struggle. Peak fares were introduced for
the first time last September in an effort to strengthen revenues and
the service was reduced to three trains per day in December.
W&S said today in a statement that despite strong growth, revenues
have not been sufficient to cover more than 65% of operating costs and
last year the company suffered losses of £2.8 million. Shareholders
have invested more than £13 million launching the business and
sustaining it through its losses.
W&S has been hamstrung by restrictions that prevented it from
serving Wolverhampton on the grounds that it would abstract revenue
from franchised operator Virgin West Coast. These restrictions will be
lifted when the West Coast franchise is retendered next year.
The news of W&S's demise comes on the same day new customer
satisfaction figures from Passenger Focus reveal the operator topped
the league table in autumn 2010 with a score of 96%, compared with a
national average of 84%.
