Virgin Trains Lose West Coast Main line
Virgin Rail has lost its bid to continue running the West Coast Mainline and will be replaced by the UK's largest rail operator, FirstGroup
http://www.bbc.co.uk/news/business-19264614
________________
Richard Branson said in a statement " It's highly unlikely Virgin will bid for anymore rail franchises - as we've seen companies like GNER go bankrupt." The bidding cost Virgin £14 Million.
0
Comments
First on the other hand have a somewhat chequered record in the rail industry - their rolling stock has always looked tattered and outdated to me.
Hopefully, Branson isn't for ever, either.
The UK has become like Russia.
Began under New Labour, massively expanded under the Conservatives.
This is what happens when you let ex public sector employees form and run companies...as opposed to ex public school boys.
Or am I one of the few remembers that First Group has its origins in the Aberdeen Corporation bus depot...or that Capita was also founded by another of these public sector idiots knows jack about business
Oh well, Branson can always go back to helping privatise the NHS. :mad:
The Pendolinos will transfer as they are on a 30 year lease to the West Coast Rail co. That is why all rolling stock orders need government approval because the stock transfers to the new operators.
First do own some of their own trains, having snapped up 5 of Virgins old ones second hand because they were not permitted to buy new on Great Western, but the Department for Transport was not happy and made it clear that no-one was to try and pull a similar stunt.
The Pendolino trains are owned by Angel Trains financially company.
First group will hire the Pendolino trains out from this Angel Trains financial company.
How can they possibly afford to buy/hire them? On top of all the other promises they seem to be making. The carriages are like something from the 1980s, service will inevitably decline and anecdotally, from friends I have who use their service elsewhere, the trains are smelly and often leak. Oh and you can guarentee that prices will rise (a lot). The Virgin product wasn't too far removed from the comfort of their airline travel.
Another in a line of just ridiculous decisions by a government that I voted for.
To do this expect First group:
and this is all on top of the rail tax which will be introduced in January 2013 and which was announced in the press yesterday
rail passengers are doing the level best to pay down the government debt.
Those three can't happen. That's something that ATOC as a whole decides, not one TOC.
Oh they will.
At the moment, the senior railcard is available on all Virgin train services.
When First take over, they will stop senior citizens from using their railcards on morning peak trains. Just as seniors can't use their railcards on morning peak trains in the South East.
Jolly good, perhaps we should have an annual day to celebrate their heroic sacrifice on behalf of the nation, meanwhile taxpayers' debt continues to go up every year we have a deficit.
Absolutely.
Remember yesterday Conservative minister Theresa Villers cofirmed that the passenger rail tax will be introduced in January 2013.
Make no mistake: it is passenger rail tax. Because the additional rail fares collected with the RPI+3% fare rise goes straight to the government and this additional cash collected helps to pay down government debt.
They can't cut it any more than that. Virgin must be the only company to offer that above the agreed railcard scheme. The minimum railcard offer is 1/3rd off on all off peak services after 10am. If a company wants to go above that then so be it.
You seem to find it a difficult concept but the government are not paying down debt, each year they run a deficit they are increasing it.
Ok. Let me re-phrase.
The money from the January 2013 passenger rail tax will be used to reduce the annual government defecit.
In turn, this will be reduce the rate of increase in outstanding government debt.
Yes, you can xpect First to reduce the availability of railcard discounts and off peak fares further still so they can raise the money they to need to hand over to the government.
Over the next 15 years, First group have promised to give the government £5.5 billion. That money will come from rail passengers.