Virgin Rail will run the West Coast Main Line for a further 23 months, the Government announced.
The immediate future of a main London to Scotland rail route - thrown into doubt following a botched franchise process - is likely to become clearer later today.
The Government is expected to announce that Sir Richard Branson's train company, Virgin Rail, can for a time carry on running trains on the West Coast Main Line.
It is believed Transport Secretary Patrick McLoughlin could also publish the independent report he commissioned when he was forced to scrap the West Coast franchise bidding process.
Rail operator Virgin has been asked to continue running the West Coast mainline for another few months after a Government U-turn.Read the full story ›
Transport Secretary Patrick McLoughlin MP told the House of Commons that Virgin will continue to run the West Coast Main Line for the next nine to thirteen months. He said passengers would "see no impact" of the mistakes made by the Government.
"I am committed to ensuring passengers see no impact as the result of these mistakes. [...] Clearly we need to learn the lessons from the two reviews and will need to run a new competition for the West Coast franchise"
InterCity West Coast passengers face the prospect of three different operators in three years thanks to the Government's franchise fiasco.
To provide long term stability for passengers & staff, Govt's not for private profit rail company should have taken over the ICWC service.
Transport Secretary is mishandling this rail crisis. He must rethink his decision to ask DfT Board members to run the 'independent' inquiry.
Our customers have made clear they want us to continue our excellent service and we now have the chance to deliver that and offer customers some short-term continuity.
We will now be working hard to make sure we continue to provide the service that has made us successful. We are grateful for the fantastic support from customers and staff over recent months.
FirstGroup, which had originally won the bidding for the West Coast Main Line before the Government's U-turn, has issued a statement after Virgin was offered an extension as the line's operator while the bidding is re-run.
The company makes no reference to Virgin, instead focusing on the future bidding for the line and, in particular, the findings of two independent reviews set up by the Department of Transport after the first West Coast franchise competition was halted.
We believe the private sector provides the most effective and efficient way to deliver passenger rail services in the UK. We await the outcome of the independent investigations into the West Coast franchise competition and the wider rail franchising process, which we hope will provide a greater degree of certainty and confidence not only to future bidders but to employees, stakeholders and the travelling public too.
The leader of the RMT transport union, Bob Crow, has attacked the Government's decision to extend Virgin's control of the West Coast Main Line while a franchise bidding process is run again.
The union wants the West Coast franchise to be run by the Department of Transport in the public sector as is the case, at the moment, with the East Coast franchise. Mr Crow said:
This announcement is no surprise. The Government are ideologically opposed to public ownership of the railways and, in collusion with the private train operators, have stitched up a shabby deal that will enable them to rerun the whole franchise fiasco in a year's time.
Richard Branson and his shareholders are laughing all the way to the bank. Not only have they made hundreds of millions from the rail privatisation lottery but they have now scooped the rollover as well.
Mr Crow added:
We will continue to fight for public ownership of the railways, a position supported by the vast majority of the British people. This short-term political fix will not detract from the call for rail to be run as a public service free from the chaos and greed of privatisation.