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Virgin Trains takes West Coast Main Line court action Virgin Trains takes West Coast Main Line court action
(35 minutes later)
Virgin Trains has said it has started court proceedings over the government's decision to award a new franchise to rival transport company FirstGroup.Virgin Trains has said it has started court proceedings over the government's decision to award a new franchise to rival transport company FirstGroup.
Virgin has run the West Coast Main Line since 1997, but lost to FirstGroup, prompting it to demand a review.Virgin has run the West Coast Main Line since 1997, but lost to FirstGroup, prompting it to demand a review.
Labour had also urged the government to delay the signing of the contract so that MPs could examine it.Labour had also urged the government to delay the signing of the contract so that MPs could examine it.
But earlier Transport Secretary Justine Greening said there would be no delay in signing the FirstGroup deal.But earlier Transport Secretary Justine Greening said there would be no delay in signing the FirstGroup deal.
'Detailed and fair''Detailed and fair'
She had been expected to sign the contract on 29 August, but Virgin is now hoping that its legal challenge will delay the signing.She had been expected to sign the contract on 29 August, but Virgin is now hoping that its legal challenge will delay the signing.
Virgin said it was going to the High Court in the hope that the process would declared flawed.Virgin said it was going to the High Court in the hope that the process would declared flawed.
However, FirstGroup said in response: "We have every confidence in the DfT's [Department for Transport's] process which is rigorous, detailed and fair and in which bids are thoroughly tested.However, FirstGroup said in response: "We have every confidence in the DfT's [Department for Transport's] process which is rigorous, detailed and fair and in which bids are thoroughly tested.
"There has been no complaint about the process, which was carefully described in advance, until Virgin Rail Group had lost commercially.""There has been no complaint about the process, which was carefully described in advance, until Virgin Rail Group had lost commercially."
FirstGroup said it wanted to proceed "without delay or disruption" and would continue to prepare to start running the franchise on 9 December this year.FirstGroup said it wanted to proceed "without delay or disruption" and would continue to prepare to start running the franchise on 9 December this year.
Virgin Trains said a clause in the invitation to tender for the franchise said the DfT should not sign the contract if a legal challenge was received.Virgin Trains said a clause in the invitation to tender for the franchise said the DfT should not sign the contract if a legal challenge was received.
'Substantial risks''Substantial risks'
In a statement, Virgin said it had tried to get clarity over the Department for Transport's decision, but its questions had been unanswered for three weeks.In a statement, Virgin said it had tried to get clarity over the Department for Transport's decision, but its questions had been unanswered for three weeks.
"We are left with no choice but to commence court proceedings as we believe the procurement process has ignored the substantial risks to taxpayers and customers of delivering FirstGroup's bid over the course of the franchise."We are left with no choice but to commence court proceedings as we believe the procurement process has ignored the substantial risks to taxpayers and customers of delivering FirstGroup's bid over the course of the franchise.
"In addition, it has ignored the DfT's own assessment that VTL's [Virgin Trains Limited] bid was more deliverable and a lower risk.""In addition, it has ignored the DfT's own assessment that VTL's [Virgin Trains Limited] bid was more deliverable and a lower risk."
It added: "The current process is geared to selecting the highest-risk bid and needs to be independently audited to prevent a repeat of former franchise failures."It added: "The current process is geared to selecting the highest-risk bid and needs to be independently audited to prevent a repeat of former franchise failures."
Sir Richard Branson, founder of Virgin Group, said the decision had not been taken lightly.Sir Richard Branson, founder of Virgin Group, said the decision had not been taken lightly.
"We had hoped that Parliament or an external review would be able to scrutinise this badly flawed process before the franchise was signed," he said."We had hoped that Parliament or an external review would be able to scrutinise this badly flawed process before the franchise was signed," he said.
"However, that opportunity would be denied if the DfT follows through with its determination to rush through the process before Parliament returns next week.""However, that opportunity would be denied if the DfT follows through with its determination to rush through the process before Parliament returns next week."
'Bottom line' decision
More than 150,000 people have signed an online petition calling for the decision to be reconsidered.
Mrs Greening said all bidders had "bought into" the "fair and well-established process".
If Virgin had won the bid it would have "been perfectly happy with the process", she added.
In a letter to Mrs Greening, shadow transport secretary Maria Eagle said FirstGroup's bid was "significantly higher than any other bid" and the decision seemed to be "almost exclusively a 'bottom line' one, driven by a particularly high pledge of payments to government".
FirstGroup is due to take over the franchise, under the name First West Coast Limited, until 2026.
The Aberdeen-based company already operates a number of rail routes, including Great Western and ScotRail.
The West Coast Main Line route serves 31 million passengers travelling between London, the West Midlands, the North West, North Wales and the central belt of Scotland.
Passenger numbers have doubled since Virgin started running the franchise.
FirstGroup has said it would introduce 11 new 125mph six-car electric trains on the Birmingham to Glasgow route and provide more direct services between destinations, as well as introduce improved wi-fi and food.