Virgin mounts legal challenge to West Coast decision
THE current operator of the West Coast Mainline, Virgin Trains, has started legal proceedings following the government’s decision to award the new WCML franchise contract to rival firm FirstGroup.
Virgin, which has operated the busy service since 1997, wants an independent review of the decision by Transport Secretary Justine Greening because it believes FirstGroup’s bid is unsustainable.
It believes its rival has overbid for the contract and it will not be able to attract the passenger numbers it claims in order to pay back the government.
Labour ministers are also urging the government to delay signing off on the new contract until MPs have had the chance to debate the decision.
Ms Greening claims the decision to award the franchise to FirstGroup is the correct one and followed due process. She said Virgin had failed to lodge any concerns until the announcement was made.
In its response, FirstGroup said: “We have every confidence in the DfT’s process which is rigorous, detailed and fair and in which bids are thoroughly tested. There has been no complaint about the process, which was carefully described in advance, until Virgin Rail Group had lost commercially.
“Our plans for the new InterCity West Coast franchise include faster journeys, new trains, more seats and more direct services from London than currently on offer. There will be improved WiFi, better catering, refurbished stations and Standard Anytime Fares will be reduced by 15% on average within the first two years.
“Our focus is to ensure a smooth transition with continuity for staff and passengers alike. We want to get on with delivering the many benefits and improvements we are offering without delay or disruption. We will continue to prepare for a successful start up of the new franchise on December 9, 2012.”
