The head of the Commission for Integrated Transport, David Begg, has warned that the switch to air travel in the wake of the Hatfield accident and the ensuing chaos on the rail network means that rail investment could be under threat because private investors' confidence is in danger of collapsing.

Unless rail services are quickly restored, Begg warned that the shift from rail to air would become permanent. A report in the Times shows how Christmas demand for public transport could leave some travellers stranded as coach, rail and air travel operators warn passengers to book now to secure the few remaining places.

The Commons transport committee issued a "vitriolic broadside" for radical changes to the management of Railtrack, with more experienced railwaymen being given power. The government is reported to be ready to order the Strategic Rail Authority to take over Railtrack operations if the company's rail recovery plan fails.