Should East Coast rail be public or private?

Andy Street was chief executive of John Lewis

Andy Street was chief executive of John Lewis

The team that has been working to form the operator of last resort will take immediate control of passenger services.

It will be rebranded as the London and North Eastern Railway.

Chris Grayling said services on the line from London to Edinburgh will be overseen by the Department for Transport from 24 June following the termination of the Virgin Trains East Coast franchise.

Transport Secretary Chris Grayling says it will be put in the hands of a public-private partnership at least until about 2020.

The franchise was originally set to end in March 2023 but the appointment of LNER as the operator of last resort marks the third time that a private TOC has had its InterCity East Coast franchise contract cancelled.

What would you like to know about the future of East Coast Mainline rail franchise?

Stagecoach and Virgin were supposed to run services on the line until 2013, but the government had previously agreed to let them walk away from the agreement three years early.

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"Deputy leader of City of York Council Andrew Waller said he would be writing to Mr Grayling immediately:to seek assurances and guarantees of stability for residents, commuters and workers in York".

The East Coast main line is to be brought back under public control in what will be the third time in a decade that the United Kingdom government has called a halt to the franchise.

The Rail Delivery Group, the industry body for Britain's railways that includes state-owned Network Rail, pointed out today that Virgin Trains has invested more in the two years in which it has operated the route than DOR did in its five-and-a-half years running it. Grayling suggested that Virgin and Stagecoach had lost around £200m supporting VTEC, while the franchise had returned approximately £1bn in premium payments to government.

The U.K. Government will take control of a key rail artery linking London with Edinburgh in a move that escalates a debate over whether Britain's wider rail network should be re-nationalized. "Virgin and Stagecoach have managed reverse alchemy - by turning gold into base metal, and profits into losses on the east coast".

Rail operators Stagecoach and Virgin are handing back control of the East Coast train line to the United Kingdom government after admitting they can not afford to keep it running, the transport secretary said Wednesday.

"Stagecoach and Virgin Trains got their bid wrong and they are now paying a price", he said in a statement to parliament. After the effects of the Network Grant had been taken into account, Virgin Trains East Coast yielded £20.8 million for the Treasury.

Stagecoach's chief executive, Martin Griffiths, said the firm was "surprised and disappointed" by the decision. Adonis has said he was forced to resign as the government was "trying to silence" him over his criticism of its handling of a multimillion pound rail franchise.

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