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Virgin wins West Coast rail bid Virgin wins West Coast rail bid
(35 minutes later)
Virgin will continue to operate West Coast Main Line train services to Glasgow with a pledge to raise capacity, the government has said.Virgin will continue to operate West Coast Main Line train services to Glasgow with a pledge to raise capacity, the government has said.
The contract has been awarded for a further two years and nine months.The contract has been awarded for a further two years and nine months.
The government said it would bring £35m worth of passenger benefits including an additional 5,500 standard-class seats each day. The government said it would bring £35m worth of passenger benefits, including an additional 5,500 standard-class seats each day.
Virgin will also invest more than £20m to modernise stations, improve waiting rooms, seats and shelters. Virgin will also invest more than £20m to modernise stations and improve waiting rooms, seats and shelters.
The train operator will now also start work to secure new direct services between Shrewsbury, Blackpool and London from December, The train operator will now also start work to secure new direct services between Shrewsbury, Blackpool and London from December.
At the start of the year, Virgin scrapped a plan to provide direct services to Shrewsbury from London.At the start of the year, Virgin scrapped a plan to provide direct services to Shrewsbury from London.
Virgin had planned to start the service in May, but said proposed time slots were not "economically viable".Virgin had planned to start the service in May, but said proposed time slots were not "economically viable".
In order to provide the additional standard-class seats, Virgin is converting 21 first-class carriages to standard class,
Free wi-fi will be offered at stations and improved coverage provided across the entire fleet.
Virgin will also invest £2.5m to improve the interiors of its Pendolino trains and £2.75m on improving catering facilities.
The train operator will pay more than £430m to run the franchise.
Legal challenge
Transport Secretary Patrick McLoughlin said: "This deal will provide thousands more seats and better journeys for the tens of thousands of passengers who use these services every day.
"The West Coast provides a vital artery between London and Scotland and it is crucial we do everything we can to improve services on this much-used route."
The franchise award comes two years after Virgin launched a legal challenge to the decision by the Department for Transport (DfT) to award a 13-year franchise for the West Coast Main Line to First Group.
The government eventually scrapped the award claiming there were "significant technical flaws" in the bidding process because of mistakes by DfT staff. Three civil servants were suspended.
Virgin has operated trains services on the West Coast Main Line since 1997.
Patrick McCall, Virgin Trains' executive co-chairman, said: "We're delighted to have reached a deal after some tough negotiations with the DfT. It puts the problems of 2012 firmly behind us and shows the clear benefits of a well-run franchise system.
"This deal is great news for passengers and taxpayers, with significant benefits for our customers, as well as a big increase in the money we pay to government."