Business – 6.1 External influences – Political and legal | e-Consult

Advantages

• Increased efficiency through profit‑driven management.
• Access to private capital for modernising infrastructure.
• Potential reduction in fiscal burden on the government.
• Improved service quality due to competition (if multiple operators are introduced).

Disadvantages

• Risk of higher ticket prices for passengers.
• Potential neglect of unprofitable routes, reducing regional connectivity.
• Loss of public control over a strategic asset.
• Job insecurity for existing railway staff and possible reductions in workforce.