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
Southern areas windy and very mild.
Nobel-prize-winning schoolgirl Malala Yousafzai has said she is a proud Brummie, as a new portrait of her was unveiled in her adopted home.
The Filipino girl group lost out to Lauren Murray in the sing off after receiving the lowest number of votes.