7th Jul 2015 06:48
LONDON (Alliance News) - FTSE 250-listed transport company Stagecoach Group PLC on Tuesday said it has been notified by the UK's Department of Transport that it has ended talks with its Stagecoach South Western Trains Ltd subsidiary on the award of the new South West rail franchise.
Stagecoach said the current franchise is due to end in 2017, and South West Trains has submitted proposals to the department as part of government plans for a new direct franchise award through to at least April 2019.
But the department has now indicated it plans to invite potential applicants to tender for a new long-term franchise, will will start sometime in 2017.
In the meantime, the UK government has said it expects to exercise its option to extend the current South West Trains franchise beyond February 2017. Stagecoach does not expect South West Trains to earn any significant profit during the extension period.
Stagecoach said it remains positive on its opportunities in the UK rail market and will continue to evaluate bids for UK rail franchises on a case-by-case basis.
By Sam Unsted; [email protected]; @SamUAtAlliance
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