Major UK train line RENATIONALISED as Virgin loses deal

Share
Major UK train line RENATIONALISED as Virgin loses deal

Stagecoach owns 90 percent of the East Coast franchise alongside Virgin.

Stagecoach said it and Virgin had been negotiating for a new contract with the Department for Transport but that it understood Mr Grayling was "no longer considering" them for the deal.

'I plan to use a period of Operator of Last Resort control to shape the new partnership.

The troubled East Coast rail service is to be renationalised after current operators Stagecoach and Virgin could not meet payments.

.

Stagecoach chief executive Martin Griffiths said he was "surprised and disappointed".

The public transport operator said the UK Department for Transport has made a decision to appoint "Operator of Last Resort" for the East Coast train service and is "no longer considering" entering into a new franchise contract due to heavy losses incurred by Stagecoach and Virgin.

Stagecoach Group said its understanding was that the announcement does not directly affect other franchises and bids for franchises in which the company has an involvement.

He added: "However, we respect the Government's decision".

The company pledged to "work constructively with the DfT and the OLR in the weeks ahead to ensure a professional transfer to the new arrangements".

Trains on the East Coast Mainline will gradually transfer to LNER branding from VTEC branding.

But now the Financial Times reports that Grayling may be considering scrapping the franchise, which would be the third time in less than a decade that the government has been forced to act on the contract.

"After three shambolic private sector failures on the east coast, the message should now sink in that these cowboys can not be trusted and should be locked out of the system on a permanent basis".

"In all circumstances ownership of the infrastructure will remain in the public sector, but the railway is at its strongest when it is a genuine partnership between public and private".

He said: 'It's important staff and passengers are properly protected while, once again, the transport secretary tries to patch up a failing franchise system that everyone knows doesn't work.

Share

Advertisement

Related Posts

In return from bereavement, A's player hits homer for mom
It's been an emotional time for Oakland Athletics outfielder Stephen Piscotty . Piscotty had been away from the team following the death of his mother.

Mircrosoft's Low-Cost Tablet to Rival Apple
The current keyboard cover costs an extra $160, while the new keyboard will be priced a bit lower, they said. As always, there will also be 64GB or 128GB variants, along with an LTE model for cellular connectivity too.

Online Casinos that Accept UK Players
Since the UK has grown to become a thriving gambling market, numerous gaming destinations have popped up that provide the service. Since the UK is regarded as the online gaming hub of the world, gamblers in the region are in no short supply of casino options.

A2 Milk's shares dumped despite upbeat sales forecast
A2 Milk believes that the A2 beta-casein protein milk is better for people, particularly those who have trouble digesting milk. By the close of trading a2 Milk had recovered some ground to finish at $11.36, down 13.28 per cent for the day.

Apps on Google Play
To sum it up, the developers revisited the original news app and integrated the company's innovative AI-powered technology. To get a detailed idea of what Google News offers, iOS users can check out a replay of the 2018 I/O keynote presentation.

Public Advocate Letitia James plans to enter race for attorney general
Republicans believe no one who is planning to run for a full term in November should be considered for the interim position. The remaining six attorney general candidates, including Humbach, Diederich and Zapesochny, will interview Wednesday.

Why Gambling Is Better than Sports Betting
Additionally, they can use these versions to practice various strategies to see which one will earn them the best winning chances. These versions give the gambler a chance to sift through the games to find the best one that resonates with their style.

Windows 10's AirDrop-Like "Near Share" Feature Will Support Android and iOS
However, they can't share content from Windows 10 devices to their Android handset - a feature that is expected to arrive soon. The update is only for Windows 10 version 1803 and Windows Server version 1803, also known as the April 2018 Update .

Pope Francis decries 'spiral of violence' in Middle East
Pope Francis has given the Bishops of Chile a series of themes for meditation at their meeting Tuesday at the Vatican. He explained that is symbolized the fire of faith passing from the godparents and parents to the child.

3 Secrets of Innovation Development by Max Polyakov
Also, the investor should never forget that even the biggest amount of invested resources doesn’t guarantee a success. One of the recent examples is the mass closing of brick-and-mortar shops in the USA because of Amazon’s popularity.

© 2015 ExpressNewsline. All Rights reserved.