Sir Richard Branson's rail operator has been asked to continue running the troubled West Coast Main Line, while a bidding process is re-run.Read the full story ›
Transport Secretary Patrick McLoughlin has apologised for the continuing uncertainty over the future of the West Coast Main Line as he confirmed plans for Virgin to remain as temporary operator.
The cancellation of the InterCity West Coast franchise is deeply regrettable and I apologise to the bidders involved and the taxpayer who have a right to expect better.
My priority now is to fix the problem and the first step is to take urgent action to ensure that on the 9 December services continue to run to the same standard and passengers are not affected.
I believe Virgin remaining as operator for a short period of time is the best way to do this and my officials and I will be working flat out to make this happen.
Busy commuters in Manchester have told me they are happy with Virgin's handling of the West Coast Main Line.
The Department of Transport has confirmed it will "negotiate with Virgin Rail Group" for them to continue to operate rail services on the West Coast Main Line for a "short period" of nine to 13 months.
During the period, an open competition will be run for an "interim franchise agreement".
The interim agreement will then run until the new long term West Coast franchise is ready to start. The Department added: "The government believes that this is the best way to ensure services are maintained and that there is no impact on passengers."
Virgin will continue to run train services on the West Coast Main Line temporarily after securing an extension.
Sir Richard Branson's company will remain in control of the line for between nine and 13 months before interim and long-term providers are decided upon.
Passengers travelling in and out of London are facing delays this morning after rail and underground services were cancelled or delayed.
Some South West Trains to and from Waterloo station were cancelled or diverted because of an electrical supply problem to the level crossings between Barnes and Richmond in south-west London.
No trains running between Barnes and Twickenham in south west London
The London Waterloo circular service departing at 07, 15, 37 and 45 minutes past the hour was cancelled
The service that runs between London Waterloo and Reading is diverted, and would not call at Richmond or Twickenham.
A spokesman for the South West Trains-Network Rail Alliance said the maximum delay passengers would face was just over 20 minutes.
The rail franchise system is "flawed", Virgin boss Sir Richard Branson told the House of Commons Transport Committee today.Read the full story ›
FirstGroup chief executive Tim O'Toole refuted claims made by Virgin boss Sir Richard Branson today over the company having "cash issues", despite being offered the rail franchise bid.
Mr O'Toole told the House of Commons Transport Committee that the allegations Virgin had made were "flat wrong". He said:
No, we don't have a cash problem. We have steadily played down debt. This year we have pointed out that cash will be flat... but we believe cash flows will return to what they were.
I don't think there is any chance of our handing back the keys. Absolutely there is a risk. There is a risk in any venture of this kind.
The Department for Transport (DfT) did not follow its own rules over the West Coast main line franchise bidding process, Virgin boss Sir Richard Branson told MPs today.
Sir Richard said Virgin was recommending that the current rules and regulations for franchise should be completely reviewed and the award of a new West Coast franchise should be delayed until the review is complete. He continued:
The DfT did not follow their own rules. The franchise system is flawed. This bid by FirstGroup is absolutely preposterous. It's completely ridiculous. It's taking the system for a ride.