19th Jun 2014 07:50
LONDON (Alliance News) - The UK government Thursday awarded the West Coast Main Line rail franchise to existing operator Virgin Rail Group, a joint venture between Richard Branson's Virgin Group and transport operator Stagecoach Group PLC.
In a statement, Stagecoach said the new franchise will start on June 22 and run until the end of March 2017. The UK Government also has an option to further extend it by a year.
It said Virgin Rail had agreed to provide a multi-million-pound package of improvements on the route, including providing more seats by converting some first class coaches to standard class, equipping trains with superfast WiFi, providing new services between Shrewsbury and Blackpool and London, and upgraded ticker machines and customer service points at stations.
Stagecoach said the joint venture will pay the Department for Transport GBP433 million to run the franchise over the initial period.
In its statement, the Department for Transport said more than GBP20 million will be invested in modernising stations in the route, GBP2.5 million will be spent improving the interiors of the Pendolino train fleet, and GBP2.75 million will be spent on improving catering facilities.
Stagecoach owns 49% of the Virgin Rail joint venture, and Virgin Group owns 51%.
Stagecoach shares were up 1.3% at 372.4 pence early Thursday.
By Steve McGrath; [email protected]; @SteveMcGrath1
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