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Sir Richard Branson condemns rail bid process as Virgin Rail loses West Coast Main Line franchise to FirstGroup

Virgin Rail lost its West Coast main line franchise to rival transport company FirstGroup today following a Government bidding process dubbed

Thursday, 16 August 2012

Cogitamus

  • West Coast franchise: your money or your votes?By Garvan Walshe, Director, Cogitamus Limited Gone are the Tory plans to use longer franchises to encourage more investment in rail infrastructure; gone are the incentives to treat passengers better. Today’s decision to award the west coast mainline to First Group makes one thing clear: it’s all about the money. First Group simply outbid Virgin. The franchise was in effect auctioned. What’s wrong with that, you might ask? Because they paid more, less taxpayers’ money needs to go to subsidise unprofitable lines, while First can increase fares ensuring that only those who...

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The Herald

  • Here's hoping winner's growth forecast is on trackTHE announcement that the franchise to run the West Coast passenger services between London, Birmingham, Manchester and Glasgow for the next 13 years and four months has been awarded to FirstGroup on the basis of a bid of £5.5 billion will arouse misgivings among those who recall the recent history of the East Coast Mainline, where two successful winners of franchise competitions (Great North Eastern Railways and National Express) won on the basis of ambitious bids and then withdrew early in the life of the franchise on finding they were making heavy losses.
  • FirstGroup deal and rail passengers: Q&Al What will change?
  • Branson slams bid process as First wins rail franchiseA BITTER war of words has erupted over the future of Scotland's busiest cross-border rail route after Virgin Trains lost out to Aberdeen-based rival FirstGroup in its bid to extend its 15-year tenure.

The Independent

  • Sir Richard Branson condemns rail bid process as Virgin Rail loses West Coast Main Line franchise to FirstGroup Virgin Rail lost its West Coast main line franchise to rival transport company FirstGroup today following a Government bidding process dubbed
  • Branson furious at 'insane' choice for West Coast line The new age of the train is due to begin on Platform 3 of Wolverhampton station at 8.05am on Sunday 9 December. At that moment, a First West Coast service will set off for London Euston for the first time on Britain's flagship rail route. At the same time a second train will depart from Manchester Piccadilly. The journeys will mark the end of the 15-year rail revolution launched by Sir Richard Branson.Related StoriesPrince Philip's health scaresNine hurt as coach carrying American punk rock band Baroness falls from viaduct in A36 crashPrince Philip taken to hospital with bladder infectionRoya...

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  • Lib Dems to oppose airport plans Liberal Democrats have underlined their opposition to any airport creation or expansion in the South East after Conservative calls for increased capacity.

Daily Express

  • FirstGroup bid win sends stock slidingSHARES in FirstGroup hit the buffers yesterday as investors questioned whether the bus and rail group had overbid to oust Virgin from the West Coast rail franchise.

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  • Train fares set to soar in region Bradford™s commuters face more misery as train fares are set to rise “ with some season tickets costing hundreds of pounds more by 2016.

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  • Tram bridges finally fall into placeTRAM bosses have said another milestone has been reached in the £776 million project after the main construction work was completed on all 12 bridges along the route.

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Global Rail News

  • Campaigners call for reform of franchise systemA passenger campaign group has called for a review of the Government’s franchise awarding system, claiming that the current process puts too much emphasis on the highest bid not the best service. Today the Department for Transport (DfT) announced that FirstGroup was to take over operation of the West Coast Mainline from Virgin after submitting [...]
  • Branson blasts government ˜insanity™ over West Coast decisionœThe 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 [...]
  • FirstGroup awarded West Coast franchiseFirstGroup has ousted Virgin to become the new operator of the West Coast Mainline. First West Coast Limited will take over the service in December and will operate on the route until 2026. Rail unions have raised concerns that the new operator will need to raise fares and cut staff to meet the return target [...]
  • CCD appointed to HS2 projectDesign and ergonomics consultancy CCD has been appointed by Parsons Brinkerhoff to provide human factors expertise to HS2. The consultancy has been tasked with describing the ‘door to door’ passenger experience that HS2 should deliver. CCD will look at the design elements of Phase 1 of the HS2 high-speed rail network as the enabling legislation [...]
  • Trains must not become œa rich man™s toyCampaign for Better Transport staged a stunt at Waterloo Station yesterday (August 14) as part of its Fair Fares Now campaign calling trains not to become “a rich man’s toy”. The protest followed the announcement that rail fares are to increase by 6.2 per cent next year. Stephen Joseph, Campaign for Better Transport™s chief executive, [...]
  • More railways pleasePeople want more railways, according to a study by  Network Rail. According to those questioned the rail industry should be confident and ambitious. From chefs to nurses, plumbers to teachers, over 300 people were involved in 10 detailed workshops earlier this year. Says Rick Haythornthwaite, Network Rail™s outgoing chairman, ˜The railway is a vital piece [...]
  • That sinking feelingStanlow Abbey was not a lucky place. Built on the Mersey™s south bank, the last decade of the thirteenth century brought flooding, storm damage and fire. No surprise then that its resident monks craved calmer waters, finding them 40 miles away in north Lancashire. There, alongside the River Calder, they established new domestic ranges, outbuildings [...]
  • Special Oscar handover for RailCorpUGL presented one of the last Oscar Stage 3 passenger trains to RailCorp at a special handover ceremony last month. UGL, which is currently building and delivering an additional 25 cars under Stage 3A – an extension to Stage 3 of the Oscar project, is expecting to deliver the last car of Stage 3A before [...]

London TravelWatch

Railnews

  • Disappointed Virgin to surrender West Coast FirstGroup has won the next Intercity West Coast franchise with a £5.5 billion bid, ending fifteen years of operation on the route by Virgin. The announcement could trigger a new controversy, because Virgin may challenge the decision.
  • Virgin's Branson hits out at franchise 'insanity' Virgin Group founder Sir Richard Branson has expressed irritation that his company has lost the bid for the West Coast franchise. It's the fourth time that his company has been defeated in a rail franchise competition, and he says it is 'extremely unlikely' that it will bid for rail contracts again.
  • FirstGroup revealed as biggest West Coast bidder It has been confirmed that winning West Coast franchise bidder FirstGroup offered the DfT £700 million more than the runner up Virgin Rail Group, 49 per cent of which is owned by Stagecoach. The Department for Transport has been accused of 'insanity' by Virgin founder Richard Branson, while Stagecoach has warned that the new West Coast contract places more risk on the franchise holder.

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