FirstGroup “confident” of rail franchise success

TRANSPORT operator FirstGroup – which controversially won the contract to operate the West Coast Main Line rail route – says it is confident Virgin Rail’s legal challenge will not succeed.
On August 15 the Department for Transport announced FirstRail is to be the new operator of the West Coast Main Line from December 9 much to the chagrin of the incumbent Virgin Rail and its boss Sir Richard Branson, who argues the bid was chosen simply on monetary value and is unsustainable.
Virgin has mounted a legal challenge to the DfT’s decision to award the contract to FirstGroup.
In a statement today FirstGroup said: “We have every confidence in the DfT’s process which is rigorous, detailed and fair and in which bids are thoroughly tested.
“Our focus is 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.
“We continue to prepare for a successful mobilisation on 9 December 2012.”
In a trading update for the six month period to September 30, it said its UK rail division is performing solidly: “Our UK Rail division achieved a further period of solid performance with like-for-like passenger revenue expected to increase by 8.1%,” it said.
“All of our rail franchises made a strong contribution to this performance and we remain focused on ensuring the quality of our existing operations while continuing to develop opportunities from the re-franchising programme. We are shortlisted for all three rail franchises currently out for tender.”