15th Nov 2019 08:15
(Alliance News) - The UK monopoly regulator on Friday said it is considering undertakings offered by FirstGroup PLC and Trenitalia SpA to address competition concerns in relation to the award of the West Coast partnership rail franchise.
West Coast Rail, a joint venture between UK transport operator FirstGroup and Italian train operator Trenitalia, was awarded the West Coast rail franchise by the UK transport department in August. The contract, which is expected to run until March 2031, is for running passenger trains between London and Scotland from December 8.
Bus and rail service operator FirstGroup holds a 70% stake in the venture, with the remainder owned by Italian-government owned Trenitalia.
The Competition & Markets Authority said there are reasonable grounds to believe that the undertakings offered, or a modified version of it, might be accepted to remedy the substantial lessening of competition identified by the regulator.
The regulator has until January 21 to decide whether to accept the undertakings, with the possibility to extend the time frame to March 17, if it considers there are special reasons for doing so.
Earlier in November, the CMA said the award of West Coast rail franchise to West Coast Rail could lead to higher fares and less availability of cheaper tickets because train passengers would have no alternatives, or limited options, to choose from.
The regulator found competition concerns relating to 21 routes in its phase one probe into the train contract award, 17 between Preston and Scotland and 4 between Oxenholme and Carlisle.
Shares in Aberdeen, Scotland-based FirstGroup were up 2.8% at 108.30 pence each on Friday morning in London.
By Tapan Panchal; [email protected]
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