Stagecoach join Virgin in bid for rail contract

Published on Tuesday 20 February 2007 11:59

A JOINT BID between Stagecoach and Virgin will be among the firms competing for the East Coast rail franchise.

The joint venture, Intercity Railways Ltd, was today shortlisted by the Department for Transport for the main rail route between Edinburgh and London.

The other firms bidding are Arriva, First Group and NXEC, which is backed by National Express.

The franchise is being relet as current holder GNER, which won the route three years ago, had to withdraw after its parent company Sea Containers could not meet its 1 billion-plus franchise payments.

Brian Souter, Stagecoach Group chief executive, said: "We are delighted to have been shortlisted for what is one of the UK's flagship routes.

"We are committed to providing passengers with a consistently safe, high-quality, fast, frequent and reliable service that will set a benchmark for rail travel in the UK."

Sir Richard Branson, Virgin Group Founder, added: "This is an exciting opportunity that comes at a time when we are enjoying increasing success and growth on our two existing franchises, Virgin West Coast and Virgin CrossCountry.

"We will put in a strong bid that is highly competitive, deliverable and will offer lasting improvements to millions of customers."