12th May 2016 06:44
LONDON (Alliance News) - The UK's Office of Rail & Road on Thursday said it has approved the applications made by Virgin Trains East Coast and FirstGroup PLC for new train services on the East Coast Main Line between London and Edinburgh.
Virgin Trains East Coast is 90%-owned by Stagecoach Group PLC, a rival FTSE 250-listed transport services company to FirstGroup.
The Office of Rail & Road said the new services also will cover passengers travelling to Middlesbrough, York, Newcastle, Morpeth, Lincoln, Leeds, Bradford, Harrogate and Stevenage. They will be introduced in stages over coming years.
The applications have not been approved for the Great North Eastern Railway Co Ltd, the office said.
"I'm pleased that the ORR has granted track access rights for our unique low-cost service between London, the North East of England and Edinburgh. This is great news for passengers, as our new service will widen the choice of travel options between these cities and offer an attractive alternative to those available today," said FirstGroup Chief Executive Tim O'Toole.
Stagecoach noted the office's grant of FirstGroup's application to run open-access services between London and Edinburgh with firm rights from May 2021. This will, as noted by the office, likely impact revenue for Virgin Trains East Coast services.
"With respect to the decision on open access between London and Edinburgh, we do not believe the granting of these services within a franchised system and without a level playing field is in the best interests of passengers, taxpayers or communities," said Martin Griffiths, the chief executive of Stagecoach, even as he welcomed the office's other decision.
By Sam Unsted; [email protected]; @SamUAtAlliance
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