1st Apr 2014 10:32
LONDON (Alliance News) - Stagecoach Group PLC said Tuesday that the Department for Transport has exercised the pre-contracted extension of the East Midlands rail franchise, extending the contract through to October 2015.
The company said it welcomes the contract extension. Under the East Midlands Trains brand, Stagecoach runs trains from and to London St Pancras International and key UK destinations throughout the East Midlands, including Leicester, Derby, Sheffield, Nottingham, Manchester and Liverpool.
The firm has operated the franchise since November 2007. The original contract was awarded for seven years and four months and included an extension option for the DfT, was due to have run until April 2015.
The DfT later announced in March 2013 the planned extension or direct award contract of a number of UK rail franchises, including the East Midlands franchise.
Stagecoach said it remains in discussions with the DfT regarding a planned direct award, subject to agreement of commercial terms, to follow the extension from October 2015 through to October 2017. "We look forward to an agreement being reached in due course," said Martin Griffiths, Stagecoach Group Chief Executive.
"East Midlands Trains is currently investing over £40 million to improve stations across its network and every single passenger train within its fleet. It has been the UK's most punctual long distance train operator for the past four years and we are committed to improving services further for our customers," Griffiths added.
No financial terms of the deal were disclosed.
Shares in Stagecoach were trading 0.08% lower at 394.4 pence per share Tuesday morning.
By Alice Attwood; [email protected]; @AliceAtAlliance
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