TROUBLED train operator Arriva Northern was fined a record £2m as it confirmed plans last night to cut 1,100 services a week this winter.

The Strategic Rail Authority (SRA) said it was imposing the massive fine for cancelled services and warned the company could be stripped of its franchise if things did not improve.

Arriva clung to its claim that a chronic driver shortage had forced it to cut 160 services a day and said it was trying to find a solution.

Last night, it emerged that things may not be back to normal for at least six months.

The crisis leaves thousands of North-East commuters facing travel misery, relying on buses instead of trains.

Coming so soon after the collapse of Railtrack, critics claimed that the latest problems were a sign of a network on the brink of disaster.

Arriva has 26 days to convince the SRA that is able to "operate a proper service" or face having to pay the fine, which relates to cancelled trains in the May to August period this year.

Passenger groups said they were appalled by the cuts to the North-East network and feared the situation could deteriorate further.

Routes which will be hit as a result of an agreed revised timetable for October 29 to February 24 include the Transpennine Express, which connects Manchester, Leeds and the North-East.

Newcastle-Darlington-Middlesbrough-Saltburn and Newcastle-Hartlepool are also affected.

Brian Millns, of the Tees Valley branch of Transport 2000, said: "This must never happen again.

"We are appalled at the state that Arriva has got itself into."

Peter Davies, chairman of railways campaign group Railfuture Yorkshire, said: "This is going to mean massive disruption and things could get worse with the winter coming up, especially if there is something like a flu epidemic or very severe weather conditions."

SRA chief executive Mike Grant said: "Arriva Trains Northern has until November 19 to convince me that it is operating, and will continue to operate, a proper service. If performance does not improve, the company faces the possibility of further serious sanctions including, ultimately, franchise termination."

Arriva said its "service revisions" would reduce the number of ad-hoc cancellations. It would not comment on the £2m SRA fine until the consultation period was over.

Arriva Trains managing director Euan Cameron said: "By taking these short-term measures, we can address the issue of driver shortage while at the same time deliver certainty for our customers."

Arriva - which claimed that the vast majority of services would be unaffected - has about 600 drivers, but is thought to need at least 150 more in order to operate its 1,600-a-day train services

Now, courtesy of the SRA, it will have to meet gradually-increasing driver targets or face a fine of £5,000 per driver per month.

Under its powers, the SRA could have imposed a penalty as high as £10m on Arriva.

Arriva will also have to put notices of the SRA's plans up at every station it serves.

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