East Coast rail franchise to come under government control

East coast main line train

The London to Edinburgh line has been run by a joint venture between Stagecoach and Virgin, for the last three years.

A Virgin Train on the East Coast Main Line.

ECML has been negotiating a new direct award franchise with the department but now understands that the secretary of state for transport is "no longer considering entering into a new franchise" with East Coast Mainline, Stagecoach said in a statement.

Former transport minister Lord Adonis labelled the government's decision a "bailout" for the companies that would cost the taxpayer billions of pounds.

'The team that's been working for me since last autumn to form the Operator of Last Resort will take immediate control of passenger services. So I am instructing the new board, working with my officials, to bring forward proposals which enable employees to share directly in the success of LNER both as a pure train operator and subsequently as the new partnership.

It is the third private operator to fail to complete its full term in running services on the route.

Messi and FC Barcelona heavy-weights in SA
He died in December 2013 at 95, and Barcelona wore black armbands during a Copa del Rey game against Cartagena in his memory. Mandela, who was born on July 18, 1918, served as president of South Africa from 1994 to 1999.

Karnataka polls: Siddaramaiah exudes confidence as turnout crosses 50%
Police have banned celebrations and bursting of crackers around 38 counting centres; additional forces have been deployed. It was 65 percent in 2008 and 2004, 69 percent in 1989 and 1994, and 69 percent in the 1990 Assembly election.

NASA to make aviation history with UAV mission on Mars
MarCO's job is to act as a kind of chaperone to InSight Lander as it approaches Mars. Until then, however, the trailblazing CubeSats have a long way to go.

Rival firm GNER was stripped of the route in 2007 after its parent company suffered financial difficulties, while National Express withdrew in 2009.

"Despite today's news, we believe that we can continue to make a positive contribution to the United Kingdom rail market, delivering long-term customer benefits and sustainable returns for taxpayers and investors", Stagecoach CEO Martin Griffiths said.

At the time, Virgin Group owner Sir Richard Branson said the partnership's bid for the franchise was "based on a number of key assumptions and a promise of a huge upgrade of the infrastructure by Network Rail", which faced delays.

Mr Grayling told the Commons: 'I will terminate Virgin Trains East Coast's contract on June 24 2018.

"Despite today's news, we believe that we can continue to make a positive contribution to the United Kingdom rail market, delivering long-term customer benefits and sustainable returns for taxpayers and investors", he added.

Related:

Comments

Latest news

Jose Mourinho receives huge boost after Fred decision
According to a close friend, the player's preference is to move to England, with no approach to date from Paris Saint-Germain. I have dreams of playing in major clubs in Europe.

Venezuela to give local Kellogg unit to workers after company halts operations
The Kellogg Company says it's closing operations in Venezuela at a time of widespread hunger in the crisis-wracked South American nation.

DirecTV Now cloud DVR goes live for all customers
The new version of the DirecTV Now app will be available for Android, Amazon Fire TV , and Roku devices in the next few weeks. And users will be able to access their local channels, like ABC, CBS, FOX and NBC, when they're away from their home market.

Kristen Stewart Goes Barefoot at Cannes Film Festival, Defies Heels-Only Rule
The film, by Spike Lee , stars Corey Hawkins and Topher Grace and takes on the checkered history of the Ku Klux Klan. Luckily for Kristen, she had the ideal black polish on her nails and her shoe removal gave them some time to shine.

Statoil to become Equinor from May 16
Statoil shares are trading higher Tuesday as the Norwegian energy company prepares to change its 50-year old name. This entails that May 15, 2018 is expected to be the last day of trading on Oslo Børs under the ticker "STL".

Novartis lawyer steps down over Trump lawyer payment
He said the company continued to pay him because it feared litigation over a premature termination of the agreement. He will retire at the start of June, to be replaced by current Novartis ethics chief Shannon Thyme Klinger.

Oil pulls back from multi-year highs on China economy fears
Crude oil production in March was around 3.76 million bpd, flat compared with the average levels in January and February. U.S. shale oil production is expected to rise by about 145,000 bpd to a record 7.18 million bpd in June, the U.S.

US Dollar Surges, Boosted By Sales Data And Rising Bond Yields
The U.S. dollar rallied against a basket of major currencies on Tuesday to its highest since December, helped by a rise in U.S. Contracts for the S&P 500, Dow Jones and Nasdaq were all directionless as the Stoxx Europe 600 Index drifted.

Gold little changed; firm dollar, USA rate outlook weighs
Higher interest rates in the United States and a rising dollar would continue to add downward pressure on gold, Lau said.

Microsoft pushes out new security and privacy related updates for Windows 10
Microsoft released today three additional Windows update packages -Microsoft Releases KB4100347, KB4134660, and KB4134661. Windows 10 Nearby Share uses Bluetooth to detect nearby devices and shares content using WiFi or Bluetooth.

Manchester United and Liverpool set for new Federation Internationale de Football Association club cup worth £100m
As a result, the competition is expected to take away the existing tournaments: the Club World Cup and the Confederations Cup. Liverpool could be set for a £100m boost after the new Club World Cup deal was put on the table.

Ajax Cape Town relegated after being found guilty in Ndoro saga
"They lose all three matches 3-0 & fined R50 000 on each offence", SAFA stated on their official Twitter account at the time. Platinum Stars now have 27 points and will be taking part in the PSL/National First Division promotion-relegation play-offs.

Twelve South's AirFly Lets You Connect Wireless Headphones To Anything
Wish you could listen to in-flight TV with your AirPods? We'll be testing AirFly ourselves and will let you know how it performs. AirFly is a tiny gadget from Twelve South that changes that by making any device with a 3.5mm headphone jack AirPods-compatible.

Is Canadian Railway (NYSE:CNI) Now a Sell? Goldman Sachs Downgrades Stock
The stock of Canadian National Railway Company (NYSE:CNI) has "Hold" rating given on Wednesday, October 26 by Stifel Nicolaus. Meridian Wealth Management LLC's holdings in Canadian National Railway were worth $515,000 as of its most recent SEC filing.

NES and SNES Classic Editions to return
Pre-orders sold out in advance of the launch and those hoping to buy one in-store were met with long lines and empty shelves . There will be no increase in the NES Classic Edition price for its return, as it will still be sold at $59.99.

Other news