Great Western Coffee Shop

FIRSTGROUP WELCOMES AWARD OF INTERCITY WEST COAST RAIL FRANCHISE

FirstGroup, the leading transport provider in the UK and North America, is delighted to have been awarded the contract by the Department for Transport ("DfT") to operate the new InterCity West Coast rail franchise until 2026.

The new franchise will offer substantial improvements in the quality and frequency of services which will attract far greater numbers of passengers, enabling InterCity West Coast to achieve a modal share comparable to other intercity franchises in the UK. This growth will create greater long term opportunities for employees; generate solid returns for shareholders and justify the substantial Government investment of ^9 billion that this railway has received by providing better value for taxpayers.

InterCity West Coast is unique because it has a considerable amount of unused capacity that will expand further with the addition of 106 new Pendolino coaches by the start of our new franchise. This capacity exists on the key growth corridor for the UK economy, linking a number of the UK's largest andgrowing major urban areas including London, the West Midlands, Greater Manchester, Liverpool and Glasgow. We will add to that capacity through the introduction of 11 new 125mph six-car electric multiple units to operate on Birmingham-Glasgow services, which will free up the Voyager trains to deliver direct services and improve connectivity to even more destinations.

The new franchise will commence on 9 December 2012 and run for 13 years and 4 months. The route, which currently has annual revenues of around ^900m, is expected to generate an operating margin of approximately 5% over the life of the franchise, and will return a premium to the Government of ^5.5 billion at net present value over the franchise term. Over the past ten years revenues on the franchise have increased at a compound annual growth rate (CAGR) of 10.2%, despite limited incentive to increase passenger revenues as a result of revenue share/support arrangements during the last five years. For the new franchise a CAGR of 10.4% is expected, which is supported by passenger and revenue focused operating investment and backed by substantial capacity increases. Improvements to drive additional passenger growth will be supported by operating investment of ^350m in the first five years of the new franchise.

Commenting, Tim O'Toole, Chief Executive said:

"We are delighted to be selected by Government to operate this unique railway which connects communities across the country and plays a vital role in the UK's economic growth. 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% on average.

"With a strong focus on service quality we will continue to invest in front line staff and look forward to welcoming new employees to the Group, providing them with long term opportunities from an enhanced and reinvigorated railway. 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.

"As the UK's largest rail operator with a highly experienced management team, we have established a vast wealth of knowledge with unrivalled expertise in operating every type of rail franchise. 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 award of Intercity West Coast marks a key milestone in renewing and developing our long-term UK Rail portfolio. We look forward to bringing an exciting mix of innovation, and customer and service improvements to InterCity West Coast and creating a better railway for all."

Key highlights of the new franchise include the following benefits for customers:

Timetable and trains

  * Transforming the on-board environment with a major refurbishment of Pendolino and Voyager interiors, with new seats throughout and improved luggage space
   
  * Introducing 11 new 125mph six-car electric trains for Birmingham - Scotland services which will create 12,000 additional seats per day. This is on top of the 28,000 new seats that will be provided by the additional 106 Pendolino carriages that are coming into service in time for the start of the new franchise. This means there will be 40,000 extra seats by 2016, compared with 2011
   
  * Improved journey time of 15 minutes for trains between London and Glasgow
   
  * Introducing new direct services from London to Blackpool, Telford, Shrewsbury and Bolton providing a new direct link to the capital for more than 500,000 people
   
  * Doubling frequency of London to Preston services and adding capacity to Chester and North Wales
   
  * Improving connectivity with more stops at Nuneaton and Milton Keynes
   
  * Reliability and punctuality improvements to increase Public Performance Measure to over 90% (from current level of 85.9%) through targeted investment and a new alliance with Network Rail
   
Fares and ticketing

  * Reducing Standard Anytime fares by 15% on average
   
  * Installation of automatic ticket gates at 21 stations, including the major terminals of London Euston, Manchester Piccadilly, Liverpool Lime Street and Glasgow Central
   
  * Investment in greater yield management capability to help grow demand with increased marketing and introducing a new customer loyalty programme
   
Enhanced customer offering and innovation

  * Smart ticketing system introduced across the network
   
  * Free upgraded high speed Wi-Fi and enhanced mobile phone coverage following train refurbishment
   
  * Enhanced catering service offered with increased at seat catering for customers
   
  * Improved information systems including new customer mobile apps
   
  * Station investment includes improving accessibility, security and passenger information
   
  * Commitment to high quality service including a greater emphasis on customer facing staff on trains and at stations
   
Additional information:

New franchise capital requirements and guarantees:

  * Minimal cash requirement - ^10m ordinary share capital in cash
   
Contingent capital:

  * ^190m subordinated revolving loan facility, supported by 3 year bank guarantees, no indexation
   
  * ^45m performance bond increasing at RPI per annum, no requirement to be cash backed
   
  * ^5m limited liability season ticket bond increasing by RPI. Matching advance cash for season ticket travel
   
  * ^15m station repair unsecured guarantee increasing by RPI

New operator for West Coast rail passengers

Rail passengers from London to Scotland will benefit from a package of improvements including more trains and more seats, as Rail Minister Theresa Villiers unveiled First West Coast Limited as the new operator for the ^InterCity West Coast^ franchise.

As part of the deal First West Coast Limited will introduce 11 new six-car electric trains which will enable more seats to be provided across the franchise, including greater capacity on the Birmingham to Scotland route. New services are planned from Blackpool, Telford, Shrewsbury and Bolton to London. First West Coast Limited has also committed to cut the cost of its ^Standard Anytime^ fares by an average of 15% within the first two years.

The franchise stretches from London to Glasgow, connecting many of the UK^s major cities including Manchester, Liverpool, Birmingham, Wolverhampton, Edinburgh, Lancaster and Chester. The franchise deal is worth ^5.5 billion (net present value) over the lifetime of the contract.

Rail Minister Theresa Villiers said:

^This new franchise will deliver big improvements for passengers, with more seats and plans for more services. Targets to meet on passenger satisfaction will be introduced for the first time in an InterCity rail franchise and passengers will also benefit from smart ticketing and from investment in stations. The West Coast is the first of the new longer franchises to be let by the Coalition which has helped us secure real benefits for passengers by encouraging First West Coast Limited to invest in the future of the service.^

Benefits the new franchise will offer passengers include:

-More Seats: The new 11 six-car electric trains will deliver circa 12,000 extra seats a day, from December 2016 with the cascade of existing rolling stock to bolster capacity on West Coast routes. This is in addition to the 106 extra ^Pendolino^ carriages which are currently being introduced into operation on to the franchise, which will deliver over 28,000 extra daily seats.

-More Services: Initially First West Coast Limited will operate the timetable they will inherit from the current franchise but are seeking to introduce a number of new services including a London Euston to Blackpool service from 2013 and from 2016 services from London to Telford Central, Shrewsbury and Bolton.

-Improved Services: Journey time improvements between London and Glasgow are planned, as well as additional services from London to Preston.

-Fares: First West Coast Limited is changing its Standard Anytime fares and reducing them by an average of 15% over the first two years of the franchise.

-Improved Stations: First West Coast Limited is taking over responsibility for maintenance at 17 of their stations and will spend at least ^22m on a station investment programme.

-Smart ticketing technology: First West Coast Limited will introduce ITSO based smart ticketing. This will offer speed and convenience as well as new ticket types more tailored to individual needs.

Following the DFT's decision to award the West Coast Mainline franchise to FirstGroup, Sir Richard Branson, founder of Virgin Group,  said:

^The Government decision to award the West Coast Main Line Franchise to FirstGroup is extremely disappointing for Virgin, and for our staff that have worked so hard to transform this railway over the last 15 years.  We submitted a strong and deliverable bid based on improving customers^ experience, increased investment and sustained innovation. To have bid more would have involved dramatic cuts to customer quality and considerable fare rises which we were unwilling to entertain.

^We also did not want to risk letting everybody down with almost certain bankruptcy at some time during the franchise as happened to GNER and National Express who overbid on the East Coast mainline. Sadly the Government has chosen to take that risk with First Group and we only hope they will continue to drive dramatic improvements on this line for years to come without letting everybody down.

^We won the franchise in 1997 with an agenda to change radically the way people viewed and used the train. At the time the track was run-down, staff demoralised, the service riddled with delays and reliant on heavy subsidies. We set hugely challenging targets to dramatically speed up journey times with modern tilting trains, increase the frequency of the service, improve the on-board experience; as well as double passenger numbers and return the line to profit.

^We were told it was "Mission Impossible" and our plans were laughed at by critics. However 15 years later, despite continued problems with the track, we have achieved our targets. Passenger numbers have more than doubled to over 30 million, the fastest growth in the UK and world leading. We have the highest customer satisfaction of any long distance franchise operator and dominate the air/rail market between London and Manchester. It has been a remarkable achievement by an outstanding team who have successfully delivered on our promises.

^I am immensely proud of our staff for turning the West Coast line from a heavily loss-making operation into one that will return the taxpayer billions in the years to come.  Last year we paid a net premium of ^160 million to the taxpayer and have created a franchise worth more than ^6 billion which is hugely valuable to the country.

^These achievements have counted for little ^ as this is the fourth time that we have been out-bid in a rail tender. On the past three occasions, the winning operator has come nowhere close to delivering their promised plans and revenue, and has let the public and country down dramatically. In the case of the East Coast Main line, both winners ^ GNER and National Express - over promised in order to win the franchise and spectacularly ran into financial difficulties in trying to deliver their plans.  The East Coast is still in Government ownership and its service is outdated and underinvested, costing passengers and the country dearly as a result.

Insanity is doing the same thing over and over again and expecting different results. When will the Department for Transport learn?

Interestingly before Virgin took over the West Coast there were more passengers using the East Coast than the West Coast. Now there are 12 million fewer.

 ^Under our stewardship, the West Coast Mainline has been transformed from a public liability into a valuable asset for the UK, worth many billions of pounds.  The service is a British success story and one to put up against rail companies around the world. It is a great shame that such a strong track record has been discounted in the evaluation process for one of the UK^s most important infrastructure assets. The country's passengers, taxpayers and the West Coast employees deserve better.

^Based on the current flawed system, it is extremely unlikely that we would bid again for a franchise.  The process is too costly and uncertain, with our latest bid costing ^14 million. We have made realistic offers for the East Coast twice before which were rejected by the Department for Transport for completely unrealistic ones and therefore will have to think hard before embarking on another bid.
^Our amazing staff have been the driving force behind the West Coast Main Line^s transformation and I am sure that for the last months of the contract they will all continue to run the high quality service that has helped win us many awards and attract millions more customers to rail.^

Nominal premium payments to the DfT of ^8.6 billion over the core franchise period from 9 December 2012 to 31 March 2026, rising to ^11.0 billion when the potential extension period to 12 December 2027 is included;

A net present value of premium payments of ^4.8 billion for the core franchise period and ^5.8 billion including the potential extension period;

remember Virgin have been running West Coast on a 2% management fee since 2002 which I think has allowed costs rise unacceptably.

I expect FG will do OK, but this is a very long franchise of the kind designed to incentivise long term large scale investment and upgrades.  So why haven't we seen any of this in the FG announcement?

I personally welcome this decision and think First will do a good job - remember Virgin have been running West Coast on a 2% management fee since 2002 which I think has allowed costs rise unacceptably.

VRG announced on 13 December 2006 that it had agreed formal terms for a restated contract with
the Department for Transport (DfT) for the franchise. The franchise deal will run until March 2012,
replacing the Management Agreement (Letter Agreement 2002) which had been in place since July
2002 following the collapse of Railtrack plc.

http://www.virgintrains.co.uk/assets/pdf/media-room/fact-sheet.pdf

New electric trains to displace Voyagers under wires seems very sensible and should have been done whoever won.  Any indication yet what they will be? Presumably the Voyagers be transfered to North Wales, Shrewsbury and other routes off the wires? Also interested to see "Improving connectivity with more stops at Nuneaton and Milton Keynes", loss of which was a major criticism of the current service, but I thought that was driven by capacity and the need to speed up longer distance services, so how will this be achieved?

^Improved journey time of 15 minutes for trains between London and Glasgow

Extract from FirstGroup's press release:


Quite some improvement. Requiring a speed of around 1600mph.  :P ;) ;D

Nothing much about catering.

Is the shop being axed? it says something like "at seat catering for all customers"...
They could do a XC, put luggage racks there and then rip them out in the saloons.
No mention of restaurants or travelling chefs (probs because they are not viable/profitable).

* Enhanced catering service offered with increased at seat catering for customers

....and that two thirds of seats are EMPTY.

Also shocking that they only have 20% of market share for London - Brum.

that obviously gives them opportunities for growth.  But what is the equivalent figure on FGW?  More than you think I expect.


If I were a long distance operator too many passengers filling my trains for a short leg that stopped others paying for longer journeys would be a problem.

Nothing much about catering.

Is the shop being axed? it says something like "at seat catering for all customers"...
They could do a XC, put luggage racks there and then rip them out in the saloons.
No mention of restaurants or travelling chefs (probs because they are not viable/profitable).

[

What the typical commuting customer sees the loading to be and the actual figures differ.

Let's take a fictitious case of the commuter airline operation around Swinetown.  Every morning, a flight leaves at 06:15 for Midshire and Wildberry, returning via Midshire to Swinetown at 07:45.  In the evening, it makes a second round trip from 18:45, getting back at 20:15.

There are 50 seats on the plane; 40 of them are occupied into Swinetown in the morning, with 15 customers from Wildberry and 25 from Midshire. So commuters who you ask will tend to tell you that the service is "always nearly full".  What they don't realise is that the 06:15 flight conveys just 2 customers from Swinetown at 06:15, rising to 5 from Midshire to Wildberry.   True loading is not the 80% commonly reported, but 31%.

Let's look deeper.

If you start looking at the Midshire to Wildberry section, you find loading of just 20% ... but cut the service back to being just Swinetown to Midshire and that service then loads to only 27% rather than the 42% loading it previously had because of the extra whole-route traffic from Wildberry up to Swinetown.

Getting better utilisation?  If you can get "other way" traffic, that would be great.  If Wildberry is purely a dormitary town with no ongoing connecting flights and no leisure opportunities, you have a problem.  But if you've got ongoing connections at Wildberry to take people from Midshire places like  Bigcity, and Sallyberry, you'll be able to fill a few extra seats.  And you'll fill significant extra numbers if you run that 90 minute round trip every 2 hours through the day - you'll make for far better use of the expensive resource of the plane, and you'll give lots more journey opportunities - not just 11 hours in Swinetown, but also 2 x 9 hour opportunities, numerous 7 hour opportunities, etc.. People who aren't sure of their return time will be able to use it too, as there will be "another one in a couple of hours" if they get held up at work, or if they've taken a day trip to Wildberry and so enjoyed walking in the countryside near there (famous for its white horses) that they want to come back later.

I'll believe the 33% loading quoted.  It's possible to get it higher, but I would be very surprised to see it over 50% very often anywhere.  Playing with scenarios leads to some very interesting data about the future direction services could take;  its shows the importance of operations like rail partnerships and promotions to fill offpeak and otherway seats, the significance of both-way flows, and (at time depressingly) the effect of a three month summer season. Thank goodness that people want to travel from Wildberry and Midshire to Swinetoen, Bigcity and Sallyberry all year  ;D

http://www.firstgroup.com/assets/pdfs/investors/presentations/InterCity_West_Coast_franchise_award_presentation_150812.pdf

Of course you could park the plane at Swineton after the morning flight returning in the evening, saving landing fees, fuel, etc. Then you would get back to 80% loading.

Err ... 55%, I think.  ;)

...  should have said leave plane at Wildberry overnight ...

Yes, I would back First as well.
I have misgivings about First, but on balance would prefer them to Virgin.

Virgin services allways feel subjectively like a not very good airline, rather than like a railway.
Being told where to sit, and the included but not very good reheated airline type meal is part of this.

Some Virgin fares seem outrageuos, on not very busy trains.
I can understand charging relatively high fares on busy services, but last minute travel on lightly used services seems unduly expensive.

As an example the off peak fare from Taunton to London is about ^40, with tickets available at the last minute, and valid on any off peak train.
I suspect that a last minute off peak journey on Virgin, of similar length, would cost much more.

All the speculation about drastic cuts in catering seem to have been pure fiction.  Other companies have drastically cut catering but FGW seems to have done better than most.  Was it all just sour grapes from Virgin trying o whip up sympathy?

The loading percentages are only a part of the story, though.  They're what I was highlighting in my earlier post, because that was what the previous posts were on about - and the fact that most people think services are far busier that they really are, because most people are around at the times the services are busy.

The next measure you want to look at is your use of your valuable investment (in this case your plane) and having in make at least some money rather than sitting idle during the day, and how to make best use of staff too.  Whereever they're based, what are they going to do in Swineton for 11 hours each day, or are you going to need multiple sets of staff because of shift limits?   If so, how do you get them back and forth, or are they going to lodge away?   I'm getting way off topic here, though ...

First have confirmed that buffet cars will be kept.
Catering staff will RISE.
"In-seat dining" introduced.

Source: Radio 4

As an example the off peak fare from Taunton to London is about ^40, with tickets available at the last minute, and valid on any off peak train.
I suspect that a last minute off peak journey on Virgin, of similar length, would cost much more.

Every time a franchise changes hands, and if it includes any form of catering, the RMT goes straight off on the same well rehearsed plan.  Blanket media coverage follows about the potential for onboard catering staff cuts to take place, and eventually, some months later, nothing much happens.

My own suspicion is that onboard catering staff, often employed by the likes of Rail Gourmet, are not as unionised as guards, and it is done mainly to encourage membership of the RMT.  They probably don't go on so much about guards being cut, as they are basically essential on the type of intercity service in question.  Drivers are mainly ASLEF, and office staff mainly TSSA.  So there's very little else they can scaremonger about, so that's what they do... 

The 'boy who cried wolf' springs to mind...

Paul 

Grahame, have you ever considered a coffee shop get together where we can put faces to names and generally have a chat? Perhaps you have and my invite got lost in the post!!

Now.....who thinks First can afford to win the GW franchise as well?.....or is the DfT having a shift around on long distance franchises?.....methinks the latter & this win actually *reduces* First's chances of winning GW.....

THe key word in my post was "afford".....nowt to do with competition.

Can they afford another few ^billion....?

Remember, these are dedicated inter-city stock and are not performing duties similar to FGW HSTs which act as London - Thames Valley commuter trains as well as inter-city trains.

At least you didn't speculate on 2+3 in Standard on a Voyager or Pendolino as has been done elsewhere.  ::)

Who's been suggesting 3+2 seating?

I assume that "Club Class" will be a declassified 1st class coach on Pendos and the "hybrid" Coach on Voyagers.
Probably similar to Chiltern's business zone - a ^15ish supplement per journey, allowing people to claim the standard ticket on expenses and pay for the upgrade themselves.

Actually the Thames Turbos are the commuter trains, but as FGW have decided to stop HSTs pretty much everywhere these days, they are now commuter trains. I can see this happening with WC, more stops at Watford/MK/Rugby/Trent Valley meaning the trains become sardine specials. Perhaps First are planning to poach half of LM passengers to pay the gov!

Who's been suggesting 3+2 seating? That sounds daft to me as even commuter TOCs have realised that 2+2 is better.

It's only because of a lack of capacity.
If you wanted faster, more frequent trains to cities to the North, then less MK stops!

A key reason why we need HS2, to get these MK stops back without affecting journey times.

The most significant of the improvements will be the creation of a third fast line by the addition of a new northbound fast line and platform face. This will enable consecutive trains to call at Milton Keynes at peak times, without loss of line capacity, a better turnback facility to be used at certain times of day and improved resilience for London ^ Northampton trains to be achieved. Similar changes will also take place on the slow lines, including local sponsorship of a platform capable of handling future services to and from Bedford or possibly later, in conjunction with the possible line restoration, from Oxford or Aylesbury.

I assume that "Club Class" will be a declassified 1st class coach on Pendos and the "hybrid" Coach on Voyagers.
Probably similar to Chiltern's business zone - a ^15ish supplement per journey, allowing people to claim the standard ticket on expenses and pay for the upgrade themselves.

You may expect it broadgage but that doesn't mean it will happen.

Why not wait and see what First actually propose to do when they refurbish the Pendolinos and Voyagers?

Remember, these are dedicated inter-city stock and are not performing duties similar to FGW HSTs which act as London - Thames Valley commuter trains as well as inter-city trains.

At least you didn't speculate on 2+3 in Standard on a Voyager or Pendolino as has been done elsewhere.  ::)

I did not speculate on 2+3 seating because I took that for granted in third.

On the Waterloo to Exeter route, there is no real reason why a few loco hauled trains could not have continued for years, even up to today if need be, thereby ensuring that the DMU services could have been longer with seats for all.

The prevailing view seemed to be that full length loco hauled trains were bad, and the 3 car DMUs were good. Any complaints about standing for hours were answered by stating that one should book a seat.

I believe you can I am sure friends from Axminister who travel to clapham Junction say they get reserved seats if they buy in advanced from the web. Usually Chiltern, on my recommendation, as the least worse TOC. 

South West Trains do not offer seat reservations but have quota controlled advance purchase products.

Err ... can you book seats on any SWT services ??

And more recently of course the great western "improved" HSTs with reduced or minmal catering and more bus seats.

Remember, these are dedicated inter-city stock and are not performing duties similar to FGW HSTs which act as London - Thames Valley commuter trains as well as inter-city trains.

But, as a regular user of HSTs I've yet to find these mythical bus seats you are always wittering on about, broadgage. Can you point me to a bus that has seats with flip down tables suitable for a laptop, access to a power socket, a moveable armrest, and a design that promotes good posture with ample leg room?

As a further of their Inter-City ethos - the Cathedral Express after WOS stopped at Evesham - Moreton - Kingham - Charlbury - Oxford and then directly on to Paddington. It had a travelling chef - was off-peak fare & an excellent service. Now it stops at Pershore - Evesham - Honeybourne - Moreton - Kingham - Charlbury - Hanborough (for Oxford Park & Ride) - Oxford - Reading - full fare only. This is no longer an express - it is a semi-fast.

...and a design that promotes good posture...

How on earth can you say those awful seats encourage good posture?
Most people I see trying to get comfortable in the seat end up having to curl up and sit partially sideways, making them slouch. It's also well nigh impossible to sit "properly" in the seats and sleep, as they are so upright you fall forward.

I expect that there is a high risk of DVT from sitting in them too long. I therefore recommend all passenger to walk about on longer journeys. The seats are so hard, that your bum goes numb after about an hour - this can't be good either.

A nice comfortable seat that one can sink into (like the SWT 159s) encourage better posture as once you've sat down, there is no need to slouch or curl up. You CAN design a safe and comfortable saloon without giving people stones to sit on with backs so high it blocks all the view of the carriage out!

Having done 1000 miles in a day on an HST, I can say that I've not had an issue with the comfort of the seats and found them perfectly comfortable for long periods of time.

A nice comfortable seat that one can sink into (like the SWT 159s) encourage better posture as once you've sat down, there is no need to slouch or curl up. You CAN design a safe and comfortable saloon without giving people stones to sit on with backs so high it blocks all the view of the carriage out!

Grahame, having some express trains to Worcester in the peaks would not muck up a standard timetable.
Basically the pattern is hourly stopping everywhere, fine off peak. During the peaks, they extend about an extra two Oxford Fasts to Worcester. Why not cut some stops on these? The villagers still have their hourly service, whilst Worcester and Hereford gain better journey times.

You could run two "expresses" (missing out Colwall, Malvern Link, Pershore, Honeybourne, Hanborough and Slough) each morning peak in between the standard hourly service encouraging commuter traffic to Oxford, Reading and London. Ditto in the afternoon/evening peak. Then once the redoubling is complete, slot a couple of commuter services from evesham and Pershore into Worcester to improve frequencies to half hourly.

Ollie, we're talking about us in the back - I'm sure first is as perfect as ever  ;D ;D

All this talk of only Reading to Paddington commuters benefit from the increased number of HST seats...

Have any of you seen the Paddington-Plymouth/Penzance services that are full AND standing all the way to Exeter/Plymouth and beyond?  Go and tell those passengers who have to stand for 2-3 HOURS that the old layout with less seats would be more comfortable!

Certainly have! Outside of peak holiday season, I have seen people standing as the train leaves Penzance. It didn't start to get any emptier until Plymouth.

4. We have the fastest trains and we^re getting quicker. We've slashed journey times - Manchester is now two hours eight minutes from London, down from two hours 30 minutes.

31. Our state-of-the art electric Pendolino trains are environmentally friendly emitting at least 76% less CO2 than cars and 78% less than domestic flights.

Erm, your trains can manage 140mph .... but the line is only signalled for 125mph.  So Southeastern and Eurostar have the fastest trains.

I'm sure First's state-of-the art electric Pendolino trains will be environmentally friendly emitting at least 76% less CO2 than cars and 78% less than domestic flights.I could go on, but it just isn't worth it.

50 reasons to sign a petition for Virgin to keep the franchise.
http://www.virgin.com/travel/news/50-reasons-to-sign-the-virgin-trains-e-petition

Scraping the barrel by about reason 2 I think...

According to a source, Virgin staff are giving out leaflets at stations and sending out emails telling people to sign.

The Department for Transport has announced that FirstGroup will be running the West Coast franchise from 9 December. We've loved zipping you around and are so disappointed that this chapter in our journey is almost over. Thank you for making the last 15 years so amazing.

There's no better time to take a trip down memory lane and look at some of our highlights that have revolutionised UK rail travel. It's still business as usual until December and we look forward to welcoming you onboard before then.

Read Sir Richard Branson's response.

Virgin Trains

Given a large enough publicity budget I could probably collect 100, 000 signatures demanding that beer be made cheaper.
The matter would presumably be debated, but I doubt that beer would get cheaper as a result.

50 reasons to sign a petition for Virgin to keep the franchise.
http://www.virgin.com/travel/news/50-reasons-to-sign-the-virgin-trains-e-petition

Scraping the barrel by about reason 2 I think...

Yes, collecting the required number of signatures means that the matter must be debated in parliament.

Not necessarily guaranteed at all.  http://epetitions.direct.gov.uk/ 

It reads "...and if it gets at least 100,000 signatures, it will be considered for debate in the House of Commons." (My emphasis.)

The government wouldn't necessarily be bound by such a debate anyway.

Seems to me all this Virgin orchestrated ranting against the DfT is almost guaranteed to ensure Virgin are permanently excluded. 

Paul

This is the Voyager crossing the Border
Standing room only, unless you pre order
Seating for the rich, corridors for the poor
The shop has sold out, the buffet no more
Revving up Beattock, claiming to be green

The wires above her, no pan to be seen
Birds turn their heads, as she approaches
Stare from the bushes, at her paltry 5 coaches

Cars in the fast lane can^t keep pace
Have comfortable seats and a lot more grace
Thro^ heather and weather but not fallen leaves
With approval ratings that no-one believes
Shoveling carbon over her shoulder
Nox, particulates, benzene, sulphur
Her weight fatigues the railway line
She^s ten minutes late but that^s on time

In the farm she passes no one wakes
All long gone to euro milk lakes
Dawn freshens but the toilet^s full
Snarling toward the urban sprawl
Scotland, independent nation
Soon an end to this vibration
Past rough estates and fast food chains
Dodging the stones from those with no brains

Call centres, offices, low cost homes
Tattooed teenagers with tweeting phones
Once steel and coal and engineering
Graffiti, flats and multi screening
Trainspotting here is not what it seems
But fuels the crime to pay for dreams
In the dark glens beside pale green sea lochs
Men read their e-mails

FirstGroup calls ^7m West Coast Mainline ad pitch

FirstGroup, the transport company that is set to replace Virgin Trains as the operator of the West Coast Mainline, is looking for an advertising agency to handle its estimated ^7 million account.

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FirstGroup: seeking an agency to help establish the new West Coast Mainline brand

The company won the contract to operate the line last week after bidding ^13.3 billion cash against Virgin Trains^11 billion. It is due to run the service from December until the end of 2028 after promising to attract millions more customers to use the service.

The operator has approached agencies directly about the brief and the winning shop is expected to play an integral role in establishing the FirstGroup brand and attracting new customers.

Elvis was responsible for creating Virgin Trains^ advertising. Its recent campaigns include "don^t go zombie".

It is unclear whether the brief covers advertising for FirstGroup^s other rail franchises, which include First Great Western and First Capital Connect. Agencies that work for the company include The Leith Agency, 20:20 and Dig for Fire.

The decision by the Government to hand the contract to FirstGroup angered Sir Richard Branson, whose Virgin Trains operation has held the franchise for 15 years. He has called for an apology from the Prime Minister, David Cameron, and may demand a judicial review of the decision.

The West Coast Mainline is used by 31 million passengers between London, the Midlands, North Wales and Central Scotland each year.

Separately, Branson^s Virgin Atlantic has announced that it is planning to launch its first domestic service, flying passengers between London and Manchester.

Why are people signing petitions? First plan to lower Anytime fares, surely that is a step in the right direction, I was under the impression that 'walk up' travel on the WCML was pretty extortionate!

BREAKING NEWS: The signing of the contract is to be delayed! Is this the start of a U- turn?

It is not all over in the battle to make the Government see sense and reconsider the decision to award the West Coast Mainline franchise to FirstGroup.

An e-petition, set up completely independent of Virgin by a member of the public, is calling for the government to reconsider the decision.

Over 20,000 people have already signed the e-petition. Once we get 100,000 signatures from UK citizens the issue may be debated in the House of Commons. We urge you to sign the e-petition and let the Government know how passionately we all feel about keeping the West Coast Mainline as a Virgin Trains franchise.

The final decision has not been signed off and we want as much support as possible to force the Government to reassess this ill-judged decision. August 28th is the provisional date for the signing of the contract for the next franchise, so do sign the e-petition as soon as possible.




Richard Branson

That's 0.3% of their annual passenger numbers. Hardly an achievement given all the publicity they've thrown at it.

They have 100,000.

What happens now?

So they have circa 28,000,000 passengers a year? That's almost half the country

About 31 million passengers travel on the West Coast Mainline every year.

What needs to happen is that both bids, with bidder name redacted, are presented fully live on ITV1:

The programme should be called "The bids", hosted by Ant and Dec. With guest panellists: Alan Sugar, Gok Wan and Joanna Lumley.

The bids are scrutinised live on ITV, before Ant and Dec give out phone numbers "vote for the best bid", "remember, it's YOUR line".

Break for News at Ten

After the news, the phone lines close. Cheryl performs her latest single.

A button is pressed, and a chair swings round - either revealing Branson or Tim O Tool - the winner of the televote and hence the WC franchise.

**Produced by Simon Cowell

Campaign to delay west coast rail decision gathers steam

The head of the transport select committee urges the government to delay signing the deal which will see Virgin Trains lose its west coast mainline franchise.

Virgin Trains' owner Sir Richard Branson dubbed the franchise system "insane" after the Department for Transport (DfT) announced last week that his company had lost out to FirstGroup in the battle to operate a new 13-year west coast franchise from December 2012.

The final contract papers for the deal are expected to be signed by Transport Secretary Justine Greening on Tuesday.

But Louise Ellman, the chairman of the House of Commons Transport Committee, has written to Ms Greening asking her to hold off signing the final contract.

In the letter, Mrs Ellman said the west coast ruling raised "important issues about the basis on which decisions on major rail franchises are made".

She added that she wanted time to raise the matter with her committee colleagues and that she was proposing a possible public oral evidence session of the committee on the subject of west coast on 11 September.

Mrs Ellman also said in the letter that she expected committee members would want to ask about the west coast franchise when Ms Greening gives evidence to the committee on the work of the transport department on 12 September.

Another select committee chair has also expressed concern about the decision.

Margaret Hodge, chair of the Public Accounts Committee, said she and her colleagues will want to make sure that the department has learnt the lessons from "past failures to secure value for money".

Mrs Hodge said the committee had expressed concerns before about the department's ability to predict accurate passenger numbers and in considering the impact of economic conditions on train operator^s revenue.

"Questions over their capability have now been raised again and whilst we welcome healthy competition it is essential that the Department has exercised proper due diligence in the letting of this franchise," he added.

Virgin, which has operated the west coast line since 1997 and has more than doubled annual passenger numbers over 15 years, has backed an e-petition calling on the government to reconsider the franchise award.

The campaign has attracted some celebrity names including double Olympic champion Mo Farah, The Apprentice presenter Lord Sugar and celebrity chef Jamie Oliver. On Friday afternoon the number of signatories had passed the 100,000 mark which means the issue could now be debated in the parliament.

But the DfT has suggested that a rethink and a role for the committee in the decision are unlikely.

A DfT spokesman said: "Once a decision has been made it is in the public interest and the commercial interests of bidders for the identity of the winning bidder to be made known promptly.

"Our published processes and criteria do not provide for a role in a live procurement exercise for the transport committee, which has not requested any kind of dialogue on this issue before now.

"However, the secretary of state is due to appear in front of the select committee in early September and will be happy to talk about the business of her department."

FirstGroup has said that its plans for the west coast franchise include improved wifi and catering, as well as additional services and more seats and reducing standard walk-on fares by 15 per cent on average.

A spokesman said: "We have a long and proven track record in running rail services and will be delivering better value for taxpayers. We look forward to welcoming all customers to their new and improved service from December."

In May 2011, FirstGroup chose not to extend its First Great Western rail franchise three years early. At the time, analysts said that the company had been very astute in that of the ^1.13bn FirstGroup had undertaken to repay during the course of the franchise, ^828m was due in the final three years. The company CEO Tim O'Toole said that the decision not to take up its option on the final years of the deal was to allow FirstGroup to negotiate a longer-term deal.

This is the first time I've wished there was a 'Like' button on this forum.  ;D

Although the panel should have at least one rail 'expert'. Perhaps Christian Wolmar or more likely, given his past involvement with shows like this - Pete Waterman.

Great post!

Louise Ellman (Chair, Transport Select Committee) just been on BBC News she said "The Secretary of State has confirmed to me that she is not prepared to delay the signing of the contract". The reporter also said "The Government says the decision was entirely fair, and it is not a matter that rank and file MPs can interfere with".

A DfT spokesman said: "Once a decision has been made it is in the public interest and the commercial interests of bidders for the identity of the winning bidder to be made known promptly. Our published processes and criteria do not provide for a role in a live procurement exercise for the transport committee, which has not requested any kind of dialogue on this issue before now. However, the secretary of state is due to appear in front of the select committee in early September and will be happy to talk about the business of her department."

If this process means extending the current franchise beyond December for a few months, I and my partners at Stagecoach would happily run the extended franchise on a not-for-profit basis, or donate profits to charity. We must ensure that this crucial decision is taken with all the facts correctly assessed and understood.

It is mad that the gov gives money out to TOCs in subsidy and then they have to pay money back, whilst private companies pocket profits.

There should be rules in place that ensure companies invest x amount of money before they can make a profit - paid for by reducing premiums.

The Chiltern way is better for passengers and taxpayers.

How much did Virgin invest in the WC? How much profit did they make?
Perhaps less payments and more investment would be preferable.

Writing in The Telegraphhttp://www.telegraph.co.uk/finance/comment/9499815/Sir-Richard-Branson-an-extraordinary-week.html

They bought new trains for both WC and Cross Country when they took over didn't they?  That was not specified in the ITT.

They ordered new trains. They certainly didn't buy them.

And paid the additional leasing costs!

My apologies if my response came across as curt. I realise you weren't suggesting Virgin actually own the trains.

Just a little sensitive at the moment to all the misinformation coming from the Virgin Supporters Club.

Most recent thing I saw that had me shaking me head was someone saying that Richard Branson should refuse to sell his trains to First Group.  ::)

To be fair to Branson (I too, don't understand the obsession with calling him other names), his article in the Telegraph is quite fair. Of course, it doesn't mean he should retain the WC!

I too am getting very annoyed at the Virgin Supporters Club.  Just trying to find the truth in all the misinformation around.  No apology required.

Edit Very annoyed is understating somewhat

There may be a Virgin Supporters club, but when 100,000 sign a petition there must be very strong feeling.

As I said Phile: 0.3% of Virgins passenger numbers. Hardly a strong feeling.

As I said Phile: 0.3% of Virgins passenger numbers. Hardly a strong feeling.

What do you suppose the proportion would be if, for example, Virgin Season Ticket holders were allowed to sign the petition more than once?

To be pedantic, Virgin don't have 30,000,000 individual passengers. That number is the amount of journeys made by their passengers.

As I said originally, it's a misprint and I provided the quote.

[...]

The West Coast Mainline route serves 31 million passengers travelling between London, the West Midlands, the North West, North Wales and the central belt of Scotland.

Virgin has run the franchise since 1997, during which time passenger numbers have doubled.

Actually, it was there. I'm sure you can see the post was edited, I may have mistakenly removed it, but it was there.

How's the Office of Rail Regulation *official* statistics for you? (The 30200000 number). You're more than welcome to go and check.

From the BBC (http://www.bbc.co.uk/news/uk-politics-19388309):

However, the actual statistic refers to 'Passenger Journeys'. The distinction is important: since almost every passenger makes at least two journeys (and holders of Annual Seasons 200 or more), it follows that arguing that '100,000 people' signing a petition is '0.3% of Virgins[sic] Passenger numbers' is faintly ridiculous. It might be arithmetically correct, but it's as statistically meaningless ...

But you'll no more get me to sign this petition than a 'Reinstate First Great Western' one in December when it's announced they've lost to National Express.  :P ;) ::)

So obviously you will know the result before the DfT have made the decision then.

If I had ever been of a mind to support Sir Richard's calls for a review of the deal, his interview on this mornings BBC R4 Today programme would probably have changed my opinion.

He stated that First Group are "generally accepted as amongst the worst" rail franchise operators, said that "Cross Country are losing money", and claimed that as part of their ICWC bid First Group provided revenue figures which required them to "sell more seats than exist". The aim of his campaign is "to get some sense into the DfT".

It came across as very much a 'toys-out-of-the-pram' episode from a bad loser and I was very surprised that the claims all went unchallenged.   

Does anyone have the data available to carry on with my musings?   I would suspect that with the extra factor brought in we could get something very rough indeed, but meaningful, that was an order of magnitude or more above the 0.3% which is in itself a useless intermediate calculation.

So obviously you will know the result before the DfT have made the decision then.

I can only offer http://assets.dft.gov.uk/statistics/series/rail/110805_Rail_Factsheet.pdf (http://assets.dft.gov.uk/statistics/series/rail/110805_Rail_Factsheet.pdf), which quotes an Opinions Survey (Chart 5) from 2009 which said that 55% had used Rail in the previous 12 months.

West Coast Main Line deal will go ahead, Greening says

Transport Secretary Justine Greening has told the BBC there will not be a delay in signing a new West Coast Main Line contract with FirstGroup.

Mrs Greening said the government would "push on" with the 13-year contract, which was a "good deal for taxpayers".

There has been pressure from Virgin Rail, which currently runs the line, and from Labour, to delay the decision until Parliament returns.

The chairwoman of the Transport Select Committee has also called for a delay.

The contract signing could happen on Wednesday.

FirstGroup has said it would bring in key improvements for passengers, but critics fear it would not be able to afford the ^5.5bn it was paying for the franchise.

Virgin's Sir Richard Branson had offered to run the service "for free" while a review was carried out.

But Mrs Greening told BBC Breakfast that all bidders had "bought into" the "fair and well-established process". She claimed that if Virgin had won the bid it would have "been perfectly happy with the process".
Service improvements

Aberdeen-based FirstGroup already operates a number of rail routes, including Great Western and ScotRail.

The company, under the name First West Coast Limited, will take over the franchise from 9 December and is due to to operate the service until 2026.

The West Coast Main Line route serves 31 million passengers travelling between London, the West Midlands, the North West, North Wales and the central belt of Scotland.

Virgin has run the franchise since 1997, during which time passenger numbers doubled.

FirstGroup has promised to introduce better wi-fi and food, more frequent trains and more seats, and to cut standard fares by 15%.

The firm said it would introduce 11 new 125mph six-car electric trains on the Birmingham to Glasgow route and provide more direct services between destinations.

Petition

More than 100,000 people have signed an online petition calling for the decision to be reconsidered.

Labour's Maria Eagle, the shadow transport secretary, has urged the government to put the contract on hold until MPs return from summer recess and have a chance to consider the deal.

And Labour's Louise Ellman, who chairs the House of Commons transport committee, has written to Ms Greening asking her to delay signing the contract.

On Sunday, Sir Richard said that if reviewing the decision meant the December deadline had to be postponed, his company and Stagecoach would be willing to continue operating the railway lines while donating any profits to charity.

Sir Richard told the BBC that he wanted a proper examination of the facts.

"We've asked 40 questions - not one of them have been answered. What we want is transparency," he said.

Well, if the matter goes to court and the Dft does not sign off to First until a court case is decided, it will probably mean a new franchise will not start for another year or even longer. Virgin will have substantially legal costs to meet but if they hold onto the current franchise in the mean time, their additional profits may exceed the legal costs.

This will be in Court within a week or two if not days, one thing for certain it is going to be expensive for you and me ........ Barristers and Court time don't come cheap and the tax payer will have to foot the bill for the Governments legal team

Should I read anything into this other than a new company has been set up to handle the new franchise?

... for example the current 'SWT' is not legally the same company as the previous 'SWT'.

The legal name of the company has also changed from South West Trains Ltd to Stagecoach South Western Trains Ltd, but the trading name has remained unchanged.

there is a pro-First epetition now by the looks of it http://epetitions.direct.gov.uk/petitions/37539 not as many signiatures as the other one though!

New Services ^ our bid also proposes new direct services to Telford/Shrewsbury/Blackpool/Bolton but they would start a year earlier than FG. We would also double the frequency to Preston and increase calls to North Wales/Nuneaton/Milton Keynes and speed up journey times between Euston and Glasgow. In addition we would create new services to Stirling, Motherwell, Hartford, Liverpool South Parkway, and further enhance services for Gobowen/Chirk/Ruabon/Wrexham, increase journey opportunities between Milton Keynes/Rugby/Stafford to the North West and increase calls at Tamworth/Lichfield.

^ Trains ^ we would replace all of the Voyager trains with 21 6-car ^Baby Pendolinos^ which would mean no diesel operation over electrified lines, delivering the best environmental solution and an all Pendolino fleet providing the best passenger environment. FG appears to be retaining all of the Voyager fleet but it is not clear whether this is a firm commitment to do so or that they have the option to redeploy them to other routes. Assuming they do retain all of the Voyagers, FG would be providing 4% more seats than we would on a daily basis. The investment in fleet would be ^385m, but no contract is in place for FG.

^ On Board Service ^ we would replace the current WIFI system with a completely new state of the art system capable of growing with passenger needs, as enhancing the current system is not feasible. There would be a complete On Board refresh. All of this would support the enhanced at seat complimentary service in First Class and a new at seat service for Standard Class. The Virgin investment in the On Board service is ^109m, but there are no details as yet from FG.

^ Track ^ to deliver the improved journey times working with Network Rail we would undertake a number of infrastructure upgrades including enhancement to allow the Pendolino to reach a top speed of 135mph in order to improve a number of journey times. This Virgin investment would be ^125m, but there is no firm commitment in FG statements.

^ Stations ^ As with FG we would install ticket gates and undertake a number of station improvement projects. We would also create more car parking, install more ticket machines and introduce smart cards. CCTV and information points would also be installed. The investment for stations totals ^99m. FG has said they will invest ^22m in this area.

^ Passenger Services ^ we will design and develop a revolutionary new Centralised Booking Engine (CBE) which is unique to the industry. It pulls together all of the many industry systems and provides the passenger with a one stop shop experience. As part of this we will introduce a new customer experience system which includes a loyalty scheme in partnership with a major scheme provider. The investment in this area is ^39m, but there is no detail in this area from FirstGroup
Including a number of other projects not listed above we are planning to invest nearly ^800m in the franchise. FG has said its investment package is worth ^350m but there is little detail of how or whether this is to be spent.

West Coast Main Line First Group deal put on hold

The deal to hand the West Coast Main Line rail franchise to First Group is to be delayed following a legal challenge by current operator Virgin.

Ministers were expected to sign the deal with First Group several days ago.

But they have confirmed due to the legal challenge the contract has not been signed and "the competition remains live".

Virgin has run the West Coast Main Line since 1997, but lost out to FirstGroup, prompting it to demand a review.

Labour had also urged the government to defer signing the contract so that MPs could examine it.

The Transport Select Committee will question Sir Richard Branson of Virgin Group and Tim O^Toole OBE of FirstGroup over the Government^s decision to award the West Coast mainline rail franchise to FirstGroup.

Sir Richard Branson and Tim O'Toole CBE will be appearing in front of the Transport Select Committee (http://www.parliament.uk/business/committees/committees-a-z/commons-select/transport-committee/news/rail-2020--wcmf-ev-session/) on Monday 10th September 2012 to give evidence to the Committee on the West Coast Mainline Franchise.


Sadly they won't be appearing side-by-side. At 4.05pm Branson will be accompanied by Virgin Rail Group CEO, Tony Collins. At 4:45pm O'Toole will be appearing alongside FirstGroup plc Rail Division MD, Vernon Barker.

Grab some popcorn. Should be an interesting watch!

A furious Richard Branson claims that the West Coast chaos threatens the North West Economy.

http://menmedia.co.uk/manchestereveningnews/news/transport/public_transport/s/1588099_virgin-trains-boss-richard-bransons-in-west-coast-main-line-warning

Is there no market in black pudding anymore?   ;D

Of course the North West has an economy. They have diverse financial markets.

Meat Pie futures. Whippet hedge funds. Racing Pigeon commodities. Flat Cap derivatives...

 ;D

Remember all the Publicity when Mr Branson invested big time and paid for the BIGGEST train order in UK History!
Well come December he can shut his toys (Pendolinos) away and tell First to find there own trains to play with.

Source for this breaking news?

BREAKING NEWS:

The West Coast mainline is set to be RENATIONAlISED in December due to the Virgin/First chaos. It will be operated by DOR until the mess is sorted out.

Just let DOR take it over. All profits go back to the tax payer. Surely that is miles better than having First/Virgin lining their pockets and depriving the railway of money.

So how good is DOR on East Coast then.

Very good. Excellent overall service. Guard's not Train Managers, fast frequent services, reliable, staff very friendly.
First Class is very similar to Virgin during peaks and better off peak and at weekends.

They're making a good profit and the money is pouring straight back into the Railway, unlike when NX bled the route dry - pushing passengers away.

You really do talk complete and utter crap.

Very good. Excellent overall service. Guard's not Train Managers, fast frequent services, reliable, staff very friendly.
First Class is very similar to Virgin during peaks and better off peak and at weekends.

They're making a good profit and the money is pouring straight back into the Railway, unlike when NX bled the route dry - pushing passengers away.

Plus, in First Class you no longer have to pay for food & drink which has meant that First Class revenue is up, despite a couple of promotions.

I don't need to watch the highlights now.

The whole 'game' is available to watch at your leisure on Parliament TV:

I cant see how First expect to carry more passengers and raise more revenue from a nearly fixed train fleet without much higher density seating in the new third class.
I did not speculate on 2+3 seating because I took that for granted in third.
Other TOCs have shown the way in this regard.
"thousands of extra seats"  "options to suit all budgets "
And the infamous "it is what customers want, surveys show it"

It could certainly be argued that parts of the West coast route serve long distance commuters, in much the same way as FGW HSTs do, and similar arguments could be applied to justify downgrading the seating layout from inter city to commuter.

MY negative thoughts regarding "improvements" are not entirely aimed at First group since I believe that similar downgrades would been done by Virgin had they retained the franchise.
Higher density seating, removal of tables and luggage space and downgrading catering is generally regarded as progress on todays railway, and does indeed provide more seats.

Enhancement of the catering on offer to First Class passengers is talked about, as well as a few details of what the intermediate Business Class is likely to offer - presumably using one or two of the current First Class carriages? 

MP attacks 'Dick Turpin' rail operators

The House of Commons has heard that taxpayers have been 'held to ransom' by 'Dick Turpin' rail operators who have surrendered their franchises unexpectedly. The accusation came from Labour MP Rosie Cooper at the start of a Westminster Hall debate on the award of the Intercity West Coast franchise to FirstGroup.

The debate was essentially about the ePetition which calls for the West Coast franchise decision to be reconsidered. It has now attracted just over 173,000 signatures.

The Transport Committee has already questioned representatives from FirstGroup and Virgin Trains, as well as the new transport secretary Patrick McLoughlin and the DfT permanent secretary Philip Rutnam. The Committee had questioned the contentious issue of how likely the franchise was to fail, and how large the financial buffer or 'subordinated loan' provided by the franchise holder should be. Virgin's would have been ^40 million, as against roughly ^200 million from FirstGroup, although Virgin has claimed that First's loan should have been ^600 million.

The debate's sponsor Rosie Cooper, who represents West Lancashire, wanted to know what negotiations had taken place with the DfT about the amount of risk, and described ^200 million as 'very small'. She maintained that 'a number' of train operators had 'handed the keys back', 'such as the East Coast Main Line'.

Two operators have surrendered their franchises early on East Coast in recent years ^ GNER and National Express. Before that, the only unscheduled halts had affected the Connex South Central and Connex South Eastern contracts, which were terminated by the Strategic Rail Authority in 2001 and 2003, plus the unsuccessful bid by Virgin to continue with its CrossCountry franchise in 2007 after a period of control by the Strategic Rail Authority in connection with the delayed West Coast Main Line modernisation project.

The current First Great Western franchise is also ending three years early in 2013, but in this case the franchise holder decided not to continue with an optional contract extension.

Ms Cooper saw at least some of these abandonments as setting an ominous precedent. She said: "I believe that Members want to be assured that that will not happen again and that taxpayers have an assurance that they will not be held to ransom by Dick Turpin train operators asking them to stand and deliver, having secured the contract on a bogus premise, taking their profits and scarpering when it is time to deliver the promised high return."

MP Daniel Kawczynski said: "I hope that the hon. Lady is not referring to any train operators as Dick Turpin-type figures," to which Ms Cooper responded: "Oh, I think there are a lot of Dick Turpin-type figures about. I would very much like to hear from the Minister on this precise point: has the Department applied its own rules or not? Given the whole handling of the process, a judicial review has been applied for, which has left us in a position where re-nationalising the line is being considered."

Various MPs then spoke vigorously in support of either bid, but several repeatedly questioned the Department for Transport's calculations of risk.

Towards the end of the three-hour debate, recently-appointed transport minister Stephen Hammond replied on behalf of the Government. He warned his audience that he could only go so far in answering the points which had been raised, or it "would probably mean I had the shortest ministerial career in history, and I do not propose to do that this afternoon."

He added: "I do not need to be reminded^I am sure that hon. Members do not either^that in cases where there is a legal challenge, it is difficult to answer all the questions that may be asked. As I said earlier, if I appear reticent, it is not any wish not to be transparent, but simply that when matters are subject to the judicial process, it is impossible to make broader comment."

In answer to the concerns about risk, he said: "In designing the franchise, some ^ comments and recommendations, particularly the Public Accounts Committee^s recommendations following the failure of the East Coast Main Line, have been taken into account. We therefore required First West Coast Ltd to provide a third party-backed guarantee, the largest guarantee ever required.

"The Government are confident that the Department is putting in place the right contingencies in the time scale, should the process not be completed. We expect the legal issues to be resolved so that contingency plans will not be necessary."

"The Department is confident that we have taken the right decision in the interests of taxpayers and passengers. We expect to sign the contract soon, but we intend to defend the judicial process robustly."

The next major development is expected to be the announcement of the date for a preliminary High Court hearing of Virgin's challenge of the DfT's decision.

FirstGroup sticks by franchise date

The transport group that beat Sir Richard Branson's Virgin Rail to win the West Coast main line said it still expected to commence the franchise as scheduled despite a legal challenge.

FirstGroup was awarded the London to Scotland line by the Department for Transport (DfT) in August but Virgin Rail, a joint venture between Virgin and Stagecoach, is pursuing a challenge against the Government department.

FirstGroup, which runs First Great Western, TransPennine Express, First Capital Connect and Scotrail services, insisted the process had been "rigorous, detailed and fair" and was preparing to commence the handover on December 9.

The Aberdeen-based group, which is also the UK's biggest bus operator, said its rail division should report an 8.1% rise in like-for-like passenger revenues in the six months to September 30, down from the 8.4% growth experienced in the year to March.

The Government has delayed the final signing of the West Coast franchise contract due to the Virgin legal challenge. Sir Richard said the DfT did not follow its own rules in choosing FirstGroup rather than Virgin to run the new 13-year franchise and described the bidding process as "insane".

If the December takeover date is postponed, Transport Secretary Patrick McLoughlin has said there are procedures under which the DfT can operate the line in the public sector.

FirstGroup said its focus was "to ensure a smooth transition with continuity for staff and passengers alike and to deliver the many benefits and improvements we are offering without delay or disruption". It said all its rail franchises made a strong contribution to the rail division performance in the first half and pledged to remain focused on existing operations while developing the re-franchising programme.

The UK bus division is expected to deliver like-for-like passenger revenues growth of 2.5% in the period as challenging economic conditions continue to impact a number of its urban operations. However, during the period operations in the North of England and Scotland saw improved revenue growth.

As previously stated, FirstGroup expects UK bus operating margins to be around 8% in the full year, down from about 13% over the previous year after bearing the brunt of higher fuel costs.

FirstGroup chief executive Tim O'Toole said: "While there is significant work to do we are satisfied with the progress of the actions we have taken, though we remain mindful of the uncertain economic backdrop." Mr O'Toole said the board remained committed to its policy of dividend growth of 7% through to the end of the financial year 2012/13.

Date announced for Virgin court challenge

Virgin Trains will be able to test its claim against the DfT over the award of the West Coast franchise in the High Court later this month, because the date for the start of a three-day hearing has been revealed today.

Virgin said the hearing has been set down to begin on Wednesday 17 October, which is two weeks tomorrow.

Three days have been allowed for Virgin and the Department for Transport to make their respective cases, although there is no certainty that a judgment will be given immediately the hearing ends. There is also the possibility that the losing side could apply for permission to appeal.

Virgin is contesting the award of the 13 year four month Intercity West Coast franchise to FirstGroup, which had been announced on 15 August, on the grounds that the DfT did not properly assess the degree ot risk represented by First's ^5.5 billion bid.

FirstGroup is required to provide a financial buffer worth ^200 million as a form of insurance against failure, but Virgin is arguing that it should have been ^600 million, which both First and the Department for Transport have denied, saying that the calculations were 'robust'.

Virgin had offered premiums worth ^4.8 billion at net present value -- ^700 million less than First. The Virgin buffer, which like 95 per cent of First's up-front payment is technically a 'subordinated loan', was put at just ^40 million. The remaining ^10 million from First is to be an injection of shareholders' capital.

First said today that it is still mobilising for takeover as planned on 9 December, but it is known that representatives of Directly Operated Railways, which is owned by the DfT, are also attending the meetings in case DOR has to step in to keep the service going.