15th Jan 2007 11:02
Stagecoach Group PLC15 January 2007 15 January 2007 STAGECOACH AND VIRGIN PARTNER TO BID FOR EAST COAST RAIL FRANCHISE Stagecoach Group plc and the Virgin Group of Companies confirmed today (15January 2007) they have jointly submitted an expression of interest for theInterCity East Coast rail franchise. Both groups are bidding for the franchise under a 50:50 joint venture company,inter city - railways ltd. The InterCity East Coast franchise, currently operated by GNER on behalf of theDepartment for Transport under a temporary management agreement, is expected tobe re-let in the next 12 to 18 months. Brian Souter, Stagecoach Group Chief Executive, said: "We are delighted that weare again partnering with Virgin to develop an innovative and deliverable bidfor the InterCity East Coast rail franchise, which is one of the UK's flagshiproutes. "We have extensive experience of operating and investing in high-quality railservices, which have attracted millions more people to the UK rail networkthrough high levels of punctuality and rising customer satisfaction. We are bothcommitted to putting passengers at the heart of our bid for the franchise." Sir Richard Branson, Virgin Group Founder, added: "Stagecoach and Virgin haveproved that Britain's railways can be transformed and that it is possible toprovide good quality service, passenger growth and operate highly efficientfranchises. "Together, we have a breadth of skill in both high-speed operations and dealingwith major infrastructure issues that is unsurpassed in the UK. We look forwardto applying this to create a winning bid, which will be attractive to customersand taxpayers alike." Performance on Stagecoach and Virgin's existing rail franchises is amongst thebest in the UK, with rising levels of customer satisfaction. The most recentNational Rail Trends report from the Office of Rail Regulation shows that VirginWest Coast is the second best of all franchised long-distance operators forpunctuality, with a moving annual average of 86.3% PPM compared to 84.4% forGNER. The latest National Passenger Survey by Passenger Focus shows overall customersatisfaction at 90% on Virgin West Coast - the best of all high-speedlong-distance operators. The DfT is expected to announce a list of short-listed bidders for the InterCityEast Coast franchise next month. ENDS For further information, please contact: Stagecoach GroupSteve Stewart, Head of Media and Public AffairsTel: 01738 442111 or mobile: 07764 774680email: [email protected] Virgin GroupWill Whitehorn, Director, Virgin GroupTel: 020 7229 4738 or mobile 07941 228844email: [email protected] NOTES TO EDITORS Stagecoach Group Stagecoach Group is a leading international transportation group, with extensivebus and rail operations in the UK and North America. The Group's businessesoperate around 12,000 vehicles and rolling stock, and employ around 27,000people. Stagecoach operates South West Trains, the UK's biggest commuter rail franchise,which runs nearly 1700 trains a day in the south-west of England out of LondonWaterloo. The Group also runs Island Line, the country's smallest railfranchise. The Department for Transport announced in September 2006 that Stagecoach hadbeen selected to operate the new 10-year South Western franchise, which combinesSouth West Trains and Island Line and runs from February 2007. Stagecoach Group is shortlisted for the East Midlands rail franchise, which runsfrom November 2007. Stagecoach operates the Supertram network in Sheffield on a 27-year concessionrunning until 2024. Stagecoach Group has been shortlisted to submit a final bid to operate thecurrent Manchester Metrolink tram network. Greater Manchester PassengerTransport Executive (GMPTE) has invited Stagecoach to submit a Best and FinalOffer to run the existing system and carry out tram maintenance. Stagecoach hasalso been asked to submit its proposals for a combined operating, systems andinfrastructure maintenance contract. The 10-year contracts would run from 1April 2007. The Virgin Group of Companies: The Virgin Group of Companies was established by Sir Richard Branson in 1970 andnow encompasses more than 200 companies around the world, operating in sectorsranging from transportation to financial services, mobile telephony,entertainment and retail. Virgin Group's total annual worldwide sales will reach£11 billion in 2007. Virgin Rail Group Stagecoach and Virgin are partners at Virgin Rail Group (VRG), which operatesthe CrossCountry and West Coast inter-city rail franchises. Both franchisescommenced in 1997. Virgin Trains is the brand name of VRG, which is owned 51 percent by VirginGroup and 49 percent by Stagecoach. VRG and the DfT agreed new commercial terms for the West Coast franchise inDecember 2006. The agreement put the franchise on new commercial terms that willrun through to March 2012. The franchise had been operated on a managementcontract since July 2002 following the collapse of Railtrack and changes to theinfrastructure upgrade to the West Coast main line, which prevented VRG fromoperating 140mph trains. VRG is bidding to win the New Cross Country franchise, which is due to start inNovember 2007. InterCity East Coast InterCity East Coast is one of Britain's busiest long distance rail routes,which links London with several cities in both England and Scotland, includingEdinburgh. Short-listed bidders will be asked to bid against a specificationbased on a consultation process undertaken by the DfT, which is proposing thatcurrent services are maintained and that the Leeds half hourly service willcontinue. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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