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":
In dealing with this, my department has been frank and open about its mistakes and is absolutely determined to find out exactly what happened.
More top news
A manhunt is being undertaken after two men were shot - one fatally - at a residential site on Thursday evening.
Residents of Fort McMurray were restricted to salvaging only their clothes and pets as they were evacuated.
Warm sunshine to end the working week