West Coast rail franchise: Sir Richard Branson condemns rail franchise ‘insanity’

PASSENGERS were yesterday promised a wealth of improvements on West Coast Main Line trains after ScotRail owner FirstGroup won control from Virgin, but critics feared its £5.5 billion bid could may be another franchise disaster.

PASSENGERS were yesterday promised a wealth of improvements on West Coast Main Line trains after ScotRail owner FirstGroup won control from Virgin, but critics feared its £5.5 billion bid could may be another franchise disaster.

• Virgin Rail company, owned by Richard Branson, had been operating the route since 1997

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• FirstGroup will run the route on a new new 13-year West Coast franchise

• Virgin say it lost franchise because FirstGroup willing to pay higher operating fees to Department of Transport (DfT)

The Aberdeen-based firm pledged new and revamped trains, faster journeys and some fare cuts when it takes over on

9 December. Virgin, which has run the service for 15 years, is believed to have made similar proposals, but lodged a £4.8bn bid which it said was a more realistic amount to pay the government over the 13-year franchise term.

The losing train operator – along with unions – pointed to the fate of GNER and National Express on the East Coast Main Line, which both abandoned the franchise after failing to meet targets and payments to the Treasury. Unions also pointed to FirstGroup pulling out of its Great Western franchise in England to avoid huge payments.

Virgin founder Sir Richard Branson accused the government of repeating mistakes made with the last two East Coast franchises. He said: “Insanity is doing the same thing over and over and expecting different results. When will the Department for Transport learn?”

First expects income to increase by 10.4 per cent on the West Coast main line to 2026, more than the 10.2 per cent growth over the past decade when faster tilting trains were introduced, and above Virgin’s latest forecast of 8.5 per cent.

Virgin Trains chief executive Tony Collins said: “To have bid more would have involved dramatic cuts to the quality of customer service and considerable fare rises, which we were unwilling to entertain.”

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Virgin, which is 49 per cent owned by Perth-based Stagecoach, said it had the highest passenger satisfaction ratings among long-distance operators, and it was named by Which? as Britain’s best-loved train firm.

But FirstGroup chief executive Tim O’Toole said: “We have a proven track record of generating growth from investment in customer service enhancements and innovation, together with a strong focus on operational delivery and financial discipline.”

The firm said it would cut Glasgow-London journeys, which average four-and-a-half hours – by 15 minutes, by 2016.

Standard anytime fares, used for peak-hour travel, will be cut by an average of 15 per cent by the end of 2014. First also pledged to upgrade train interiors with more luggage space, for which Virgin has been criticised, new seats and “better catering”.

Eleven new electric trains will be added by the end of 2016

on routes such as Glasgow-Birmingham, along with the

Edinburgh-Birmingham services. The operator has also agreed to annual passenger satisfaction targets to rise from 72-77 per cent to 81-83 per cent. Failure to meet them will require extra

improvements.

Mike Hewitson, head of passenger issues at Passenger Focus, the official watchdog, said FirstGroup would have “lots to live up to” as Virgin had achieved 90 per cent passenger satisfaction.

The Rail, Maritime and Transport union demanded “cast-iron” guarantees over jobs and working conditions for staff, including 260 in Scotland. General secretary Bob Crow said: “We are already preparing a ballot for industrial action in light of the threatened job cuts.”