49Term of passenger service contracts, &c.

49 Term of passenger service contracts, &c.

(1)  A passenger service contract under section 44 or 45 is to be for one non-renewable term not exceeding 24 months.

(2)  A passenger service contract under section 46 or 47  –

(a) is to be for a term not exceeding 10 years; and

(b) may, in the discretion of the parties, provide for the term of the contract to be split into an initial period of any length and one or more further periods of any length (provided those periods do not, in aggregate, exceed 10 years); and

(c) may, if the term of the contract is split as mentioned in paragraph (b) , provide that the continuation of the contract from one period to the next is conditional on the operator meeting set performance standards.

(3)  A passenger service contract under this Division –

(a) may set performance standards and provide for sanctions (which may include early termination) if these are not met; and

(b) is, in other respects, to be on such conditions as the Secretary considers necessary or expedient in the circumstances.