How did the Department for Transport go off the rails?
Remember the Virgin Trains mess? Later an official report into what went wrong will be made public.
Remember the Virgin Trains mess? Later an official report into what went wrong will be made public.
The Government has been forced to admit the profitable West Coast Main Line contract has yet to be signed, thanks to a legal bid by Virgin.
Virgin Trains has lodged 400 pages of legal arguments as to why they believe the West Coast main line contract should not go to FirstGroup.
The Transport Secretary is seeking legal advice after a court challenge by Virgin boss Sir Richard Branson threatened to derail the awarding of the West Coast Main Line rail franchise to rivals FirstGroup.
Virgin lodged papers at the High Court in London yesterday and a hearing will be held in due course.
Legal challenges are often very time-consuming and expensive and someone like Sir Richard Branson who likes to make a lot of money and not necessarily spend a lot of money wouldn't do this lightly.
In a sense though, did we ever expect him to bow out quietly and gracefully if he lost something he'd controlled and grown since 1997.
I think it's clear from most lawyers I've spoken to, the government and sources at FirstGroup tonight feel pretty confident that his case is not that great.
But the difficulty might come when any legal challenge starts chewing up a lot of time, and money.
FirstGroup needs to get this done so they're ready to take over the franchise in December.
These things are costly, complicated and the franchise system is notoriously tangled up.
A Department for Transport spokesman has said that the new West Coast franchise contract awarded to FirstGroup will be signed soon.
Earlier, Virgin Trains announced it had started court proceedings over the Government's decision.
– Department for Transport spokesmanWe are confident our process is robust and that the decision was absolutely the right one for tax payers and passengers.
We expect to sign the contract soon.
The Transport Secretary, Justine Greening, has said she is "disappointed but not surprised" by Virgin Trains' decision to take legal action over the government's decision to award a new West Coast franchise to transport company FirstGroup.
She also said the government would defend its position "robustly".
Virgin Trains' legal challenge is an application for a judicial review of the decision to award FirstGroup, the West Coast main line contract.
The firm lodged papers at the High Court in London today and a hearing will be held at the court in due course.
It is unclear if this means the final signing of the franchise contract by the Transport Secretary Justine Greening - which is expected tomorrow - will now be delayed pending the outcome of the hearing.
Virgin boss Sir Richard Branson has spoken to ITV News' Business Editor, Laura Kuenssberg, about the decision to take legal action over the government's decision to award a new West Coast franchise to FirstGroup.
Speaking from Necker Island, Sir Richard said: "It was our last resort".
Virgin Trains has lodged 400 pages of legal arguments as to why they believe the West Coast main line contract should not go to FirstGroup.
Read the full storySir Richard has told me that legal action is Virgin Train's "last resort" over the West Coast franchise and he believes a judicial review will delay the process.
He said: "Judicial reviews are hard to win but we feel we have a shot".
Virgin Trains has begun legal action over the Government's decision to award a new West Coast franchise to transport company FirstGroup.
Read the full storyEarlier this month, the Government announced that Virgin had lost out to transport company FirstGroup in the bidding war to run a new 13-year West Coast franchise.
Transport company FirstGroup, which already has a number of rail franchises including Great Western and ScotRail, will start operating the London to Scotland West Coast line in December.
Virgin boss Sir Richard Branson reacted angrily to the decision, branding the bidding process "insane" and threatening to end all involvement with the railways.Today, Virgin, which has operated the West Coast line since 1997, said it was "commencing court proceedings" over the Government decision.