Echo Business
First Group wins West Coast Main Line contract from Virgin Rail
9:54am Wednesday 15th August 2012
TRANSPORT giant First Group, which operates bus services across Hampshire, has won its battle to take over running the West Coast Main Line from Richard Branson's Virgin Rail.
FirstGroup, now Britain's largest rail operator, vowed to "offer substantial improvements in the quality and frequency of services".
The company, which along with its bus services already has a number of rail franchises including Great Western and ScotRail, will take over the West Coast line on December 9.
The £5.5billion franchise will run for 13 years and four months.
FirstGroup chief executive Tim O'Toole said the company was delighted to win the franchise.
He said: ''We will be making significant improvements including reduced journey times and introducing new direct services.
''Our winning bid is a deliverable proposition that is compelling for all who want to see a greater use of our rail networks.
''We will be making significant improvements including reduced journey times and introducing new direct services. We will improve marketing and deliver a smart ticketing system, refreshed and improved train interiors, station upgrades and even better catering.
''In support of our commitment to generate increased passenger growth we will be reducing standard anytime fares by 15 per cent on average.''
Mr O'Toole said First West Coast would continue to invest in front-line staff and looked forward to welcoming new employees.
He added: ''Our bid also delivers value for taxpayers by returning premiums to the Government underpinned by sustainable growth in passenger numbers and revenues from the utilisation of significant available capacity.
''The new franchise will provide an economic return for our shareholders and is value enhancing from day one.''
Virgin Rail company had been operating the route since the dawn of privatisation in 1997.
Sir Richard said Virgin had submitted ''a strong and deliverable bid based on improving customers' experience, increased investment and sustained innovation''.
He said: ''To have bid more would have involved dramatic cuts to customer quality and considerable fare rises which we were unwilling to entertain.''
Sir Richard said Virgin had transformed the West Coast line, more than doubling annual passenger numbers and last year paying a net premium of £160 million to the taxpayer.
Announcing the new franchise winner, Rail Minister Theresa Villiers said the new franchise would deliver ''big improvements for passengers, with more seats and plans for more services''.
But the RMT transport union warned of ''massive cuts to jobs and passenger services and huge increases in fares''
Comments(10)
soton1980
says...
10:18am Wed 15 Aug 12
Based on their First Great Western services which are terrible, I have doubts about this statement.
St Retford
says...
10:23am Wed 15 Aug 12
Shoong
says...
10:39am Wed 15 Aug 12
St Retford wrote:Yes, I must confess I get a bit bleary eyed and nostalgic for the BR days, slam door trains and dodging someone else's urine on the deck and for the staff who couldn't give a stuff.
Why do we get these private operators to bid billions for a franchise and then give that straight back to them in the form of government subsidies when they realise they're not making enough profit? This was a golden opportunity to part-renationalise the railways at zero cost to the taxpayer.
Inform Al
says...
12:28pm Wed 15 Aug 12
Shoong wrote:I was dragged up in Paddington on the GWR area. My memories are of all staff taking a great interest in doing their jobs properly, I used to get the underground at Royal Oak station to get to school, one stop before Paddington Station and saw a lot of what went on. Here in Hampshire I do not often see staff manning the stations, not even staff that can't even give a stuff.
St Retford wrote:Yes, I must confess I get a bit bleary eyed and nostalgic for the BR days, slam door trains and dodging someone else's urine on the deck and for the staff who couldn't give a stuff.
Why do we get these private operators to bid billions for a franchise and then give that straight back to them in the form of government subsidies when they realise they're not making enough profit? This was a golden opportunity to part-renationalise the railways at zero cost to the taxpayer.
George4th
says...
3:29pm Wed 15 Aug 12
OSPREYSAINT
says...
3:59pm Wed 15 Aug 12
Shoong wrote:If proper investment funding of the scale wasted on the modern day TOCs had been given to British Rail, we would now have the best railways in the World. The railways in the past were always operating under a shoestring budget, little wonder they could never achieve anything, most of the staff that I knew performed well despite the poor financial management, none of them ever had a decent wage for the responsibilty of the job. The Road lobby has always been too strong and are as responisible as anyone for the mess we have found ourselves in. I always got the impression that Virgin did in the main respect their staff and were strong on the theory that a happy work force was a loyal and efficient group of people who did a good job.
St Retford wrote:Yes, I must confess I get a bit bleary eyed and nostalgic for the BR days, slam door trains and dodging someone else's urine on the deck and for the staff who couldn't give a stuff.
Why do we get these private operators to bid billions for a franchise and then give that straight back to them in the form of government subsidies when they realise they're not making enough profit? This was a golden opportunity to part-renationalise the railways at zero cost to the taxpayer.
Fatty x Ford Worker
says...
4:15pm Wed 15 Aug 12
George4th
says...
4:57pm Wed 15 Aug 12
OSPREYSAINT wrote:"If proper investment funding of the scale wasted on the modern day TOCs had been given to British Rail, we would now have the best railways in the World. The railways in the past were always operating under a shoestring budget, little wonder they could never achieve anything, most of the staff that I knew performed well despite the poor financial management, none of them ever had a decent wage for the responsibilty of the job. "
Shoong wrote:If proper investment funding of the scale wasted on the modern day TOCs had been given to British Rail, we would now have the best railways in the World. The railways in the past were always operating under a shoestring budget, little wonder they could never achieve anything, most of the staff that I knew performed well despite the poor financial management, none of them ever had a decent wage for the responsibilty of the job. The Road lobby has always been too strong and are as responisible as anyone for the mess we have found ourselves in. I always got the impression that Virgin did in the main respect their staff and were strong on the theory that a happy work force was a loyal and efficient group of people who did a good job.
St Retford wrote:Yes, I must confess I get a bit bleary eyed and nostalgic for the BR days, slam door trains and dodging someone else's urine on the deck and for the staff who couldn't give a stuff.
Why do we get these private operators to bid billions for a franchise and then give that straight back to them in the form of government subsidies when they realise they're not making enough profit? This was a golden opportunity to part-renationalise the railways at zero cost to the taxpayer.
Like all Nationalised industries they were grossly over-manned and therefore had no money for investment.
"I always got the impression that Virgin did in the main respect their staff and were strong on the theory that a happy work force was a loyal and efficient group of people who did a good job."
I agree with you. Virgin are a proven success in all spheres of the service industry - they are the masters of customer care. I cannot see First Group matching the service levels of Virgin - however, they won the bid so let's wait and see............
Rob444
says...
5:52pm Wed 15 Aug 12
Inform Al says...
10:02am Wed 15 Aug 12