15/01/2007
Stagecoach Group plc and the Virgin Group of Companies confirmed today (15 January 2007) they have jointly submitted an expression of interest for the InterCity 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 the Department for Transport under a temporary management agreement, is expected to be re-let in the next 12 to 18 months.
Brian Souter, Stagecoach Group Chief Executive, said: "We are delighted that we are again partnering with Virgin to develop an innovative and deliverable bid for the InterCity East Coast rail franchise, which is one of the UK’s flagship routes.
“We have extensive experience of operating and investing in high-quality rail services, which have attracted millions more people to the UK rail network through high levels of punctuality and rising customer satisfaction. We are both committed to putting passengers at the heart of our bid for the franchise.”
Sir Richard Branson, Virgin Group Founder, added: “Stagecoach and Virgin have proved that Britain’s railways can be transformed and that it is possible to provide good quality service, passenger growth and operate highly efficient franchises.
“Together, we have a breadth of skill in both high-speed operations and dealing with major infrastructure issues that is unsurpassed in the UK. We look forward to applying this to create a winning bid, which will be attractive to customers and taxpayers alike.”
Performance on Stagecoach and Virgin’s existing rail franchises is amongst the best in the UK, with rising levels of customer satisfaction. The most recent National Rail Trends report from the Office of Rail Regulation shows that Virgin West Coast is the second best of all franchised long-distance operators for punctuality, with a moving annual average of 86.3% PPM compared to 84.4% for GNER.
The latest National Passenger Survey by Passenger Focus shows overall customer satisfaction at 90% on Virgin West Coast – the best of all high-speed long-distance operators.
The DfT is expected to announce a list of short-listed bidders for the InterCity East Coast franchise next month.
ENDS
For further information, please contact:
Stagecoach Group
Steve Stewart, Head of Media and Public Affairs
Tel: 01738 442111 or mobile: 07764 774680
email: steven.stewart@stagecoachgroup.com
Virgin Group
Will Whitehorn, Director, Virgin Group
Tel: 020 7229 4738 or mobile 07941 228844
email: will.whitehorn@virgin.co.uk
NOTES TO EDITORS
Stagecoach Group
Stagecoach Group is a leading international transportation group, with extensive bus and rail operations in the UK and North America. The Group's businesses operate around 12,000 vehicles and rolling stock, and employ around 27,000 people.
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 London Waterloo. The Group also runs Island Line, the country’s smallest rail franchise.
The Department for Transport announced in September 2006 that Stagecoach had been selected to operate the new 10-year South Western franchise, which combines South West Trains and Island Line and runs from February 2007.
Stagecoach Group is shortlisted for the East Midlands rail franchise, which runs from November 2007.
Stagecoach operates the Supertram network in Sheffield on a 27-year concession running until 2024.
Stagecoach Group has been shortlisted to submit a final bid to operate the current Manchester Metrolink tram network. Greater Manchester Passenger Transport Executive (GMPTE) has invited Stagecoach to submit a Best and Final Offer to run the existing system and carry out tram maintenance. Stagecoach has also been asked to submit its proposals for a combined operating, systems and infrastructure maintenance contract. The 10-year contracts would run from 1 April 2007.
The Virgin Group of Companies:
The Virgin Group of Companies was established by Sir Richard Branson in 1970 and now encompasses more than 200 companies around the world, operating in sectors ranging 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 operates the CrossCountry and West Coast inter-city rail franchises. Both franchises commenced in 1997.
Virgin Trains is the brand name of VRG, which is owned 51 percent by Virgin Group and 49 percent by Stagecoach.
VRG and the DfT agreed new commercial terms for the West Coast franchise in December 2006. The agreement put the franchise on new commercial terms that will run through to March 2012. The franchise had been operated on a management contract since July 2002 following the collapse of Railtrack and changes to the infrastructure upgrade to the West Coast main line, which prevented VRG from operating 140mph trains.
VRG is bidding to win the New Cross Country franchise, which is due to start in November 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, including Edinburgh. Short-listed bidders will be asked to bid against a specification based on a consultation process undertaken by the DfT, which is proposing that current services are maintained and that the Leeds half hourly service will continue.
