06.11.12
23-month extension for Virgin on West Coast
Virgin Trains’ contract to run the West Coast Main Line franchise has been extended for 23 months, the Government has announced – just days before it was due to expire.
The contract was initially awarded to FirstGroup, but following a legal challenge by Virgin, a DfT inquiry found that there had been “fundamental errors” in the franchising process and cancelled the award.
Virgin has now been granted a 23-month extension, although this could be shortened by up to six months if a subsequent franchise could be let on a shorter timescale.
Transport secretary Patrick McLoughlin appointed head of Centrica and DfT non-executive board member, Sam Laidlaw, to conduct a review of the process and the DfT has published his report on the matter today.
McLoughlin has also announced a new hourly service between Glasgow and London. He is making a statement to the Commons today on the West Coast franchise and the results of the review.
He said: “We are determined to ensure not only that passengers continue to experience the same levels of service they have in the past, but that services improve.”
Chief executive of Virgin Rail Group, Tony Collins, said: “We are proud of what we have achieved since 1997, but there is undoubtedly more to come and we will work closely with the DfT to bring even better services in future.”
General secretary of the RMT union, Bob Crow, said: “Because of the shocking ineptitude right at the top of this rotten Government, Sir Richard Branson has muscled his way into a monopoly provider position and him and his Virgin Trains shareholders will be laughing all the way to the bank. The case for renationalisation of Britain's railways is now overwhelming.”
The three officials who were initially suspended over the West Coast franchise cancellation have been reinstated. One of them, Kate Mingay, had started legal action over the suspension.
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