14/08/2007
Stagecoach Group plc (“Stagecoach”) and The Virgin Group of Companies (“Virgin”) today expressed their disappointment at the announcement by the Department for Transport (DfT) that they had been unsuccessful in their bid to operate the Inter City East Coast franchise.
Virgin and Stagecoach submitted a bid to operate the franchise through their joint venture company, inter city - railways limited. The bid was developed in partnership with incumbent operator Great North Eastern Railway (GNER) and following extensive consultation with more than 400 stakeholders.
Commenting on the DfT’s announcement, Graeme Hampshire, Bid Director for intercity - railways, said: “We are disappointed not to have been given the opportunity to reinvigorate the East Coast franchise and re-establish its reputation for quality and service.
“Our plans offered a very rewarding deal for the taxpayer, improved performance and capacity, a strong emphasis on customer service and a transformation of the travel experience for passengers.
“We believed our bid demonstrated our ability to deliver everything the DfT had asked and we will be meeting them shortly to learn exactly why our bid was unsuccessful.”
ENDS
For further information, please contact:
Stagecoach Group
Steve Stewart, Director of Corporate Communications
Tel: 01738 442111 or mobile: 07764 774680
email: steven.stewart@stagecoachgroup.com
Virgin Group
Will Whitehorn, Director, Virgin Group
Tel: 020 7229 4738 or mobile 07941 228844
email: will.whitehorn@virgin.co.uk
NOTES TO EDITORS
Stagecoach Group
Stagecoach Group is a leading international transportation group, with extensive bus and rail operations in the UK and North America. The Group's businesses operate around 12,000 vehicles and rolling stock, and employ around 27,000 people.
Stagecoach operates the South Western rail franchise, which includes the South West Trains and Island Line networks. South West Trains, the UK's biggest commuter rail network, runs nearly 1700 trains a day in the south-west of England out of London Waterloo. Island Line, on the Isle of Wight, has been designated a Community Rail Partnership.
In June 2007, the Department for Transport awarded Stagecoach Group the contract to operate the new East Midlands Franchise. It comprises:
- the former Midland Mainline franchise that operated high speed long distance services from London St. Pancras to Sheffield, Derby and Nottingham
- the regional services formerly operated by Central Trains between Nottingham and Derby/Lincoln/Cleethorpes/Skegness, between Derby and Crewe/Matlock/ and Norwich and Liverpool
The franchise will run until 31 March 2015, the last year and 4 months of which will be conditional upon achieving pre-set performance targets.
Stagecoach is Britain’s biggest tram operator, running networks in Sheffield and Manchester. The Supertram network in Sheffield, a 29km tram system incorporating three routes in the city, is operated on a 27-year concession running until 2024. In July 2007, Stagecoach took over responsibility for the Manchester Metrolink tram network. The 10-year contract with Greater Manchester Passenger Transport Executive (“GMPTE”) involves the operation and maintenance of the 37km system and the associated infrastructure. It will include managing a number of special projects sponsored by GMPTE to improve the trams and infrastructure to benefit passengers. Stagecoach Metrolink will also be responsible for operating tram services on the new Metrolink lines to Oldham, Rochdale, Droylsden and Chorlton.
The Virgin Group of Companies
The Virgin Group of Companies was established by Sir Richard Branson in 1970 and now encompasses more than 200 companies around the world, operating in sectors ranging from transportation to financial services, mobile telephony, entertainment and retail. Virgin Group’s total annual worldwide sales will reach £11 billion in 2007.
Virgin Rail Group
Stagecoach and Virgin are partners at Virgin Rail Group (VRG), which currently operates the CrossCountry and West Coast inter-city rail franchises. Both franchises commenced in 1997.
Virgin Trains is the brand name of VRG, which is owned 51 percent by Virgin Group and 49 percent by Stagecoach.
VRG and the DfT agreed new commercial terms for the West Coast franchise in December 2006. The agreement put the franchise on new commercial terms that will run through to March 2012. The franchise had been operated on a management contract since July 2002 following the collapse of Railtrack and changes to the infrastructure upgrade to the West Coast main line, which prevented VRG from operating 140mph trains.In July 2007, the DFT announced that VRG’s bid for the New Cross Country franchise was not successful. VRG will cease to operate the franchise in November 2007.
GNER
Inter city - railways announced in April 2007 that GNER Holdings Limited would have acquired a 10% stake in the new franchise holding company at the time of signing a new franchise agreement, if the bid had been successful. This arrangement will now not continue.
