The Transport Secretary Patrick McLoughlin has announced Virgin are to operate the West Coast Mainline until November 2014.
Virgin had been set to lose the West Coast contract which it has been operating since 1997 but the Government scrapped the bidding after faults by the Department for Transport were found with the bidding process.
Mr McLoughlin told MPs plans were continuing for an interim contract with Virgin to operate for up to 14 months while the franchise process was rerun.
He said passengers would see the same staff on the same trains and the service would be "enhanced":
Mr McLoughlin said the report made "uncomfortable reading" and outlined its findings.
He told the Commons:
Four Cabinet ministers have their fingerprints on the West Coast Mainline "franchise fiasco", Labour claimed in the Commons today.
Shadow transport secretary Maria Eagle said Transport Secretary Patrick McLoughlin, his predecessor and current International Development Secretary Justine Greening, Northern Ireland Secretary Theresa Villiers and Defence Secretary Philip Hammond have all played a role.
Patrick McLoughlin has read some of the interim findings from the Laidlaw report in to what went wrong with the West Coast mainline bidding process.
"In the limited time available this is necessarily only a preliminary report. What is clear however is that in seeking to run a complex and novel franchising competition process, an accumulation of significant errors, described in the report, resulted in a flawed process.
“These errors appear to have been caused by factors including inadequate planning and preparation, a complex organisational structure and a weak governance and quality assurance framework.
"The full causes and the lessons to be learnt will be addressed in the final report of my independent Inquiry to be published at the end of November.
“Firm judgements should not be made based upon what are provisional findings or wider conclusions drawn at this stage.”
Phil Marsh, a former senior executive for Network Rail, told the ITV Tonight programme that the Department for Transport "could be said to be robbing tax payers in the latest franchising fiasco".
Cliff Holloway, who spent 25 years driving trains for British Rail and 15 years for Virgin, told the ITV Tonight programme that rodents at Euston Station are a symbol of the fragmentation brought on by privatisation of the rail system.