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15/08/2012
Virgin Trains Lose West Coast Mainline Franchise
The UKs largest rail operator, FirstGroup, will take over the running of the West Coast Mainline, after Virgin Rail lost its bid to continue operating the service.
Sir Richard Branson said Virgin's loss of the franchise was "very disappointing news".
FirstGroup, under the name First West Coast Limited, will take over the franchise from 9 December and is due to to operate the service until 2026. They said it would "offer substantial improvements in the quality and frequency of services".
However, unions and rail campaigners have argued jobs will be cut, fares will rise and catering services will be cut back.
First West Coast says it will return £5.5bn at net present value to the government over the franchise term.
That is believed to have been much higher than the amount offered by Virgin Rail, which is 49%-owned by another transport company, Stagecoach.
In a statement, Stagecoach said the reason it had failed to secure the new franchise was because FirstGroup had contracted to pay "significantly higher premium payments" to the Department for Transport.
(H)
Sir Richard Branson said Virgin's loss of the franchise was "very disappointing news".
FirstGroup, under the name First West Coast Limited, will take over the franchise from 9 December and is due to to operate the service until 2026. They said it would "offer substantial improvements in the quality and frequency of services".
However, unions and rail campaigners have argued jobs will be cut, fares will rise and catering services will be cut back.
First West Coast says it will return £5.5bn at net present value to the government over the franchise term.
That is believed to have been much higher than the amount offered by Virgin Rail, which is 49%-owned by another transport company, Stagecoach.
In a statement, Stagecoach said the reason it had failed to secure the new franchise was because FirstGroup had contracted to pay "significantly higher premium payments" to the Department for Transport.
(H)
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