British Franchise Fracas Resolved

By Anonymous

HIGH-PROFILE British operator Virgin West Coast has had its franchise agreement reinstated after prolonged uncertainly caused by cost overruns on modernisation of the London to Glasgow route.

Virgin’s franchise runs until 2012, and the company will receive subsidy of up to 294 million per year, largely to cover increased track access charges caused by the upgrade of the route.

Meanwhile, the operator of Britain’s other London-Scotland inter- city franchise. Great North Eastern Railway (GNER), has entered into a management agreement with the Department for Transport to operate its route for a 15-month period until March 2008. This follows concerns that GNER would breach its agreement. The franchise will then be re-let, though it is unclear if the incumbent will be among the bidders.

Copyright Simmons-Boardman Publishing Corporation Jan 2007

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