East Coast rail: Virgin, Stagecoach and the Transport department blamed for franchise fiasco

Sign up to Simon Calder’s free travel email for expert advice and money-saving discounts Get Simon Calder’s Travel email Get Simon Calder’s Travel email SIGN UP I would like to be emailed about offers, events and updates from The Independent. In March 2015, VTEC – 90 per cent owned by Stagecoach and 10 per cent by Virgin Group – took over the franchise, agreeing under the terms of the franchise “to deliver to the passenger the best railway passenger services that can be obtained from the resources that are available to it.” But it quickly became clear that the growth in passenger traffic on which the VTEC’s franchise bid was predicated had not materialised. Bids are now assessed with a greater emphasis on overall value for the passenger.” “We are now preparing for East Coast Partnership – bringing together the operation of track and train to deliver a high quality service to passengers and value for money for the taxpayer.” But the committee warned: “From our inquiry, we cannot be sure, and cannot reassure passengers or public, that the arrangements for the East Coast Partnership will more successfully overcome the systemic difficulties presented by the current set-up.” A Stagecoach Group spokesperson said: “We welcome the committee’s endorsement of the high quality of service and investment provided for passengers by Virgin Trains East Coast and the operational success of what it acknowledges was a profitable franchise. “As the committee makes absolutely clear, there was no incentive to deliberately overbid and there was no taxpayer bailout in the unfortunate premature end to the contract.” Anthony Smith, chief executive of the independent watchdog Transport Focus, said: “However the East Coast is run, passengers will be looking for the quality of current services to be maintained and built on. “Having more stability in the underlying contract between government and the train company will help achieve these things that matter most to passengers.” Mark Smith, the former British Rail manager who runs the Seat61.com train travel website, said: “The franchise was popular, with high levels of passenger satisfaction, and it made an operational profit, just not enough to cover the required premium payments which had been committed to based on over-optimistic passenger growth which did not in the event materialise.