www.arriva.co.uk

According to the British bus and rail operator, Arriva, slower growth at its main rail franchise, CrossCrounty, would hit its first half results. Thus, this would knock its stock. Right now Arriva runs transport groups in 13 different countries across Europe.

A statement from Arriva said that CrossCountry revenues grew by about 2.4 percent in the last six months. However, it would need a full year growth of 10 percent to maintain its 2008 profit levels.

Arriva shares, which are already down by more than 30 percent this year, were off 1.8 percent at 413.25. This values the business at around 805 million pounds, or $1.33 billion. The CrossCountry franchise of Arriva runs from Aberdeen in the north east Scotland area to south west England. The rail does qualify for government support in the event of slowing revenue growth. However, this cannot happen until 20111.

The CrossCountry route has been hit very hard by falling passenger numbers due to the economic downturn that has been really sticking it to the travel industry. This trend has now led to several operators having to commit to paying the government for the right to run trains.

Right now, National Express, which runs the East Coast mainline from Edinnburgh to London has been viewed as the most vulnerable to the downturn in travel. However, National Express did reject a surprise bid approach from its rival FirstGroup.

However, not all news is bad for Arriva. Its British bus division has seen a very steady climb in revenues by 5.2 percent.

For more information visit: www.arriva.co.uk