The Government is considering directly operating the East Coast Mainline after the Transport Secretary announced the existing operator is due to "run out of money".
Chris Grayling told the Commons that the Stagecoach-led franchise will be unable to continue to operate the Leeds-London route for the duration of its contract.
He told the Commons that Stagecoach had "got its sums wrong" over the East Coast franchise and was set to lose almost £200 million.
He said he has not made a decision on a successor, and could either let Stagecoach continue "under a very strictly designed short term arrangement" or Government will step in on a "short-term, not-for-profit" basis as a last resort.
In response to calls to renationalise the East Coast Mainline, Mr Grayling acknowledged the finances of the current operator have been "disastrous" despite claiming day-to-day operations have "proved very successful".