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Rail operator Govia Thameslink faces being informed it is going to be stripped of its franchises until efficiency on its providers within the South East of England quickly improves, the BBC understands.
Passengers on its Thameslink and Great Northern trains have confronted greater than a month of disruption following the introduction of recent timetables in May.
A source stated the federal government may start the method inside weeks.
Meanwhile, commuters are to set obtain compensation value a month's journey.
Govia Thameslink Railway (GTR)which additionally runs Southern and the Gatwick Express providersmodified the time of each prepare on its timetable on 20 May.
Passengers had been warned of disruption earlier than the modifications had been introduced in, however the implementation of the brand new timetable noticed some providers withdrawn and additional cancellations with none warning.
Since then, GTR chief government Charles Horton has resigned and Transport Secretary Chris Grayling has confronted calls to face downas MPs from throughout all events voiced their concern on the disruption induced of their constituencies.
Passengers have been venting their anger on social media, whereas final week a memo leaked by the RMT union revealed that additional safety workers had been at stations to guard workers from "unhappy customers".
But there's additionally frustration inside authorities that whereas Northern, which encountered comparable issues within the North of England, has launched an interim timetable, Govia Thameslink's equal continues to be a fortnight away.
"They are now in the last chance saloon," a authorities source informed the BBC.
Mr Grayling had beforehand introduced there can be compensation for commuters and an inquiry into what went flawed, saying there had been "major failures" by the rail trade.
A spokesman for Govia Thameslink refused to touch upon the studies in regards to the potential lack of the franchises, as an alternative selecting to re-release a assertion through which it stated it was "sorry for the disruption".
GTR had added it rescheduled each prepare in its franchise in an try to enhance rail effectivity nevertheless it was a "hugely complicated task" and concerned re-training drivers on new routes.