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Unread 26-10-2016, 19:21   #7
Jamie2k9
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Join Date: Jun 2010
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IE are due to get over 50 million in 2017, according to papers yesterday as well. It's clear they will get the loins share of the 650 by 2021. Question is why did Ross leak the report, test waters for possible closures.

Quote:
Closing a line doesn't make financial sense

Line A takes in revenue X and makes loss Y
NTA pays PSO at value Y (give or take %)

IE closes line A
IE loses revenue X and PSO Y
IE has to pay out redundancy
IE head office costs remain the same but now spread over fewer lines

Prior to the arrival of EC1370 and the NTA IE would be up Y - X - redundancy in year 1 and Y - X in year 2 (Assuming that the subsidy is greater than revenue)
I guess the NTA have more to gain by getting rid of lines but who is typically behind touting such closures IE or NTA?
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