14th Aug 2007 09:00
Stagecoach Group PLC14 August 2007 Stagecoach Group plc 14 August 2007 STAGECOACH AND VIRGIN STATEMENT ON EAST COAST RAIL FRANCHISE ANNOUNCEMENT Stagecoach Group plc ("Stagecoach") and The Virgin Group of Companies ("Virgin")today expressed their disappointment at the announcement by the Department forTransport (DfT) that they had been unsuccessful in their bid to operate theInter City East Coast franchise. Virgin and Stagecoach submitted a bid to operate the franchise through theirjoint venture company, inter city - railways limited. The bid was developed inpartnership with incumbent operator Great North Eastern Railway (GNER) andfollowing extensive consultation with more than 400 stakeholders. Commenting on the DfT's announcement, Graeme Hampshire, Bid Director forintercity - railways, said: "We are disappointed not to have been given theopportunity to reinvigorate the East Coast franchise and re-establish itsreputation for quality and service. "Our plans offered a very rewarding deal for the taxpayer, improved performanceand capacity, a strong emphasis on customer service and a transformation of thetravel experience for passengers. "We believed our bid demonstrated our ability to deliver everything the DfT hadasked and we will be meeting them shortly to learn exactly why our bid wasunsuccessful." ENDS For further information, please contact: Stagecoach GroupSteve Stewart, Director of Corporate CommunicationsTel: 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 GroupStagecoach 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 the South Western rail franchise, which includes the SouthWest Trains and Island Line networks. South West Trains, the UK's biggestcommuter rail network, runs nearly 1700 trains a day in the south-west ofEngland out of London Waterloo. Island Line, on the Isle of Wight, has beendesignated a Community Rail Partnership. In June 2007, the Department for Transport awarded Stagecoach Group the contractto operate the new East Midlands Franchise. It comprises: •the former Midland Mainline franchise that operated high speed long distance services from London St. Pancras to Sheffield, Derby and Nottingham •the regional services formerly operated by Central Trains between Nottingham and Derby/Lincoln/Cleethorpes/Skegness, between Derby and Crewe/ Matlock/ and Norwich and Liverpool The franchise will run until 31 March 2015, the last year and 4 months of whichwill be conditional upon achieving pre-set performance targets. Stagecoach is Britain's biggest tram operator, running networks in Sheffield andManchester. The Supertram network in Sheffield, a 29km tram system incorporatingthree routes in the city, is operated on a 27-year concession running until2024. In July 2007, Stagecoach took over responsibility for the ManchesterMetrolink tram network. The 10-year contract with Greater Manchester PassengerTransport Executive ("GMPTE") involves the operation and maintenance of the 37kmsystem and the associated infrastructure. It will include managing a number ofspecial projects sponsored by GMPTE to improve the trams and infrastructure tobenefit passengers. Stagecoach Metrolink will also be responsible for operatingtram services on the new Metrolink lines to Oldham, Rochdale, Droylsden andChorlton. 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 currentlyoperates the CrossCountry and West Coast inter-city rail franchises. Bothfranchises commenced 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. In July 2007, the DFT announced that VRG's bid for the New Cross Countryfranchise was not successful. VRG will cease to operate the franchise inNovember 2007. GNER Inter city - railways announced in April 2007 that GNER Holdings Limited wouldhave acquired a 10% stake in the new franchise holding company at the time ofsigning a new franchise agreement, if the bid had been successful. Thisarrangement will now not continue. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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