Virgin Trains says it has launched court proceedings over the UK Government's decision to award a new West Coast franchise to transport company FirstGroup.
Virgin has operated the line since 1997, but FirstGroup will take over the 13-year contract from December.
Speaking from Necker Island, Sir Richard Branson said the decision to take legal action was a 'last resort'.
FirstGroup says it has 'every confidence' in the Department for Transport's process, which it describes as 'rigorous, detailed and fair' and in which bids are 'thoroughly tested'.
For more on this story visit ITV News.
The party is calling on the Transport Secretary to delay signing off the contract awarding the West Coast Mainline franchise to FirstGroup.
Virgin Rail has lost its West Coast main line franchise, including the route from Holyhead to Euston, the UK Government has announced.