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Virgin Trains 'to lose West Coast Mainline bid' Virgin Trains 'to lose West Coast Mainline bid'
(40 minutes later)
Virgin Rail looks set to lose its bid to continue running the West Coast mainline later, with the UK's largest rail operator expected to take over. Virgin Rail looks set to lose its bid to continue running the West Coast Mainline later, with the UK's largest rail operator expected to take over.
FirstGroup is said to be the front runner for the franchise because it has offered the highest bid.FirstGroup is said to be the front runner for the franchise because it has offered the highest bid.
The government is promising extra seats and more investment in stations along Britain's busiest rail line.The government is promising extra seats and more investment in stations along Britain's busiest rail line.
But unions and rail campaigners warn jobs will be cut, fares will rise and catering services will be cut back.But unions and rail campaigners warn jobs will be cut, fares will rise and catering services will be cut back.
BBC transport correspondent Richard Westcott says it is the first of several big franchises up for grabs in the next few years, and the government is under pressure to get a good deal.BBC transport correspondent Richard Westcott says it is the first of several big franchises up for grabs in the next few years, and the government is under pressure to get a good deal.
But picking the biggest bid comes with risks, because it is much harder for the company to make a profit, our correspondent says.But picking the biggest bid comes with risks, because it is much harder for the company to make a profit, our correspondent says.
Sir Richard Branson's Virgin Rail has operated the franchise since the privatisation of Britain's railways in the 1990s. Sir Richard Branson's Virgin Rail has operated the franchise since 1997 after the privatisation of Britain's railways.
The West Coast Mainline route serves London, the West Midlands, the North West, North Wales and the Central Belt of Scotland.The West Coast Mainline route serves London, the West Midlands, the North West, North Wales and the Central Belt of Scotland.
Virgin Rail, which is 49% owned by another transport company, Stagecoach, could mount a legal challenge if it loses the franchise.Virgin Rail, which is 49% owned by another transport company, Stagecoach, could mount a legal challenge if it loses the franchise.