Long-distance train operator CrossCountry, which runs services between Stansted airport and Cambridge and the Midlands, has been awarded a new contract to continue running services for three more years.
The Department for Transport (DfT) said it will take on the revenue and cost risk associated with the franchise, in line with emergency measures announced last month.
CrossCountry, owned by Arriva, has run trains through England, Scotland and Wales since 2007.
Its network stretches from Aberdeen to Penzance, and from Stansted Airport to Cardiff and serves stations in the Anglia region - Audley End, Cambridge, Ely, Manea, March, Whittlesey, Peterborough and Stansted
Under the new deal, capacity will be boosted by 20,000 seats per week, more drivers and on-board staff will be deployed, and technology to cut the environmental impact of operations will be trialled.
This includes powering trains using batteries instead of diesel when they enter and leave stations, to improve air quality.
There will also be new measures to help passengers with disabilities, such as providing the option of reserving space for assistance dogs, and better staff training.
With a real focus on boosting capacity and seizing the opportunity to create more environmentally sustainable services, this new contract will benefit passengers in the long term
Rail Minister Chris Heaton-Harris said: “This agreement ensures that vital train services will continue across the UK’s most extensive rail network, as the country continues to fight and recover from the Covid-19 pandemic.
“The deal announced today reaffirms our commitment to ending the complicated franchise system, and is focused on the best interests of passengers, delivering better services and helping create a new kind of railway.
“With a real focus on boosting capacity and seizing the opportunity to create more environmentally sustainable services, this new contract will benefit passengers in the long term, improving their experience when travelling on our railways.”
Arriva will be paid a performance-linked fee to run services.
CrossCountry managing director Tom Joyner said: “This is great news for our customers and stakeholders and recognises the importance of our continuing to deliver long-distance business and leisure services across England, Scotland and Wales.
“Our trains connect towns and cities, people and communities across Great Britain, and this will be essential as we rebuild our national and local economies.
“We will continue to focus on highlighting the benefits of rail travel and ensuring our customers can travel with confidence.”
Rail, Maritime and Transport (RMT) union general secretary Mick Cash said: “The Government, who are financially supporting the train operators, should have seized the opportunity to cut out the middleman and bring the CrossCountry operation into direct public ownership.
“RMT will be studying the details of this award carefully and our priority will remain protecting the jobs, pay and conditions of our members.”