Britain's most under-fire rail firm paid £11million to its shareholders while accepting government cash during the pandemic.
Figures uncovered by Labour show Avanti shareholders got the dividends for the financial year 2020/21. And between 2019 and 2021, the Department for Transport paid the firm more than £17million in performance and management fees.
That was despite the fact that Avanti was the worst-performing rail operator, with almost half its services arriving late.
Shadow transport secretary Louise Haigh said: “Ministers have rewarded abject failure, it is scandalous. Under the absurd system the Tories have created, passengers always come last.”
Ms Haigh said Avanti’s “abysmal” rail services were “barely functioning” and it should be stripped of its franchise unless it improved.
The company took over the London-Glasgow West Coast from Virgin in 2019. Since then it has slashed services, causing severe overcrowding, and hiked fares. An open return from Manchester to London is £369.40.
There was uproar when it cut services between the two cities from three to one per hour.
Avanti is 70% owned by FirstGroup, whose boss Graham Sutherland, 58, may be in line for a £3million pay package this year, including bonuses. Outgoing CEO Matthew Gregory got £2.2million last year.
Avanti said: “We understand and apologise for the enormous frustration and inconvenience felt by our customers at the moment.
“The decision to reduce our timetable was due to ongoing industrial action which has seen short notice availability of drivers to work additional overtime.”
The Department for Transport said: “We are meeting with Avanti West Coast regularly to discuss its performance for passengers.”
Meanwhile, around 80% of trains were axed yesterday due to the sixth day of strikes by RMT members, with a knock-on effect expected today.
