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| Virgin West Coast contract extended | |
| (about 1 hour 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. |
| It comes two years after Virgin challenged a government decision to award the rail franchise to First Group. | |
| Virgin will invest a further £35m to update trains and provide an extra 5,500 standard-class seats each day. | |
| Virgin will also invest more than £20m to modernise stations and 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 Department of Transport (DfT) said. | |
| 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, | 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. | 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. | 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. | The train operator will pay more than £430m to run the franchise. |
| Legal challenge | 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. | 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 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 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. | 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. |
| Transport correspondent Richard Westcott writes: | |
| This deal is part of a much bigger process to avoid a repeat of the West Coast franchise catastrophe in 2012. | |
| That deal collapsed because a swamped Department for Transport got its figures wrong and didn't follow the rules. | |
| The timetable for handing out other deals looked like it might overrun the government and they can't afford another mess. | |
| So they're using short-term deals and extensions to stagger the whole process out. | |
| When I spoke to Richard Branson a couple of years ago, just after he thought he'd lost the West Coast deal, he told me he was so disillusioned he might leave the railway business for good. | |
| Now, his company will be running that same line until at least the spring of 2017. | |
| Virgin has operated trains services on the West Coast Main Line since 1997. | 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. | 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." | "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." |