Trainline shares plunge after government rail plans revealed

Shares in online rail and bus ticket firm Trainline have plunged after news that a new state-owned body is to sell rail tickets.

Under a shake-up of the rail sector, Great British Railways will sell tickets via a website and app, in competition with multiple companies.

It will also set timetables and prices and manage rail infrastructure.

Trainline shares dropped 34% before regaining some ground in early trading.

In the present system passengers buy rail tickets from firms online and at stations, and also through National Rail Enquiries.

However, under government plans there will be a new Great British Railways ticket website and app, with "significant rollout" of more pay-as-you-go, contactless and digital ticketing on smartphones.

There will also be more straightforward compensation for delayed or cancelled services from operators in Englandthrough the app and website.

From next month flexible season tickets will be available for some people who commute two or three times a week.

They are due to go on sale on 21 June for use seven days later, and will allow passengers to travel on any eight days in a 28-day period.

The overall aim is to "simplify the current mass of confusing tickets", the Department for Transport said.

Walk-on fares will be set by the government and season ticket prices will be capped.

However, private train companies will have "more commercial freedom" on long-distance fares, the Department for Transport said.

Trainline said the reforms mean there will be new opportunities for ticketing and data firms. "Our presence in the market for over 20 years provides us with an innate understanding of how people travel," a spokesperson said.

"During this time, we have built knowledge, scale, partnerships and technology capabilities to provide customers with a simple, consistent and friction-free travel booking experience, which we believe is a huge differentiator."

Trainline said it would continue to work with the government "in formulating the detail around future ticketing proposals and reform".