Virgin Trains loses West Coast Mainline franchise

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Originally Posted by xxMATTGxx

Are we on about before privatisation when it used to be called British Rail? Because it wasn't exactly any better back then.

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It wasn't no, but it's just as bad now because the 'private' companies (who are infact subsidised heavily by the taxpayer) are often poorly run because there is little incentive to improve services when you are granted wads of taxpayer cash each and every year. The same goes for the 'private' bus companies, all of whom are heavily regulated, taxed and subsidised - they are only private in name.

If we truly had a privatised transport system then all subsidies would end to bus/rail companies and as many companies would be able to operate or own the lines/trains/bus stops as they wished (so if you and me wanted to buy a second hand bus and run it at school times, undercutting the Arriva price of £1.50 then we could do so). The same goes for the roads and motorways, road tax and all motor tax would be scrapped and the roads would become toll roads which are privately owned.

I'd like to see that happen, but its only once in a blue moon that the state will get its grubby fingers off (the Thatcher Ministry).

Update on this matter and the signing has been put on hold due to legal action by Virgin:

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The deal to hand the West Coast Main Line rail franchise to First Group is to be delayed following a legal challenge by current operator Virgin.

Virgin launched the challenge last week after losing its attempt to continue operating the route.

Ministers were expected to sign the deal with First Group several days ago.

But they have confirmed due to the legal challenge the contract has not been signed and "the competition remains live".

Virgin has run the West Coast Main Line since 1997, but lost out to FirstGroup, prompting it to demand a review.

Labour had also urged the government to defer signing the contract so that MPs could examine it.

'Significant improvements'

And more than 165,000 people have signed an online petition calling for the decision to be reconsidered.

In a written ministerial statement transport minister Theresa Villiers said: "As a result of a legal challenge, which the government intends to defend robustly, we have not yet signed the contract with First West Coast, and consequently the competition remains live."

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http://www.bbc.co.uk/news/uk-19467510

West Coast Main Line deal ditched

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Ministers have scrapped the decision to award the West Coast Main Line rail franchise to FirstGroup saying the bidding process was flawed.

The contract - awarded in August - was immediately challenged in the courts by Virgin Trains, which lost out.

Ministers say there were "significant technical flaws" in the way the risks for each bid were calculated and say the bidding process must be rerun.

They have also ordered two independent reviews into what happened.

One will examine how the West Coast franchise competition went wrong, and what lessons can be learned.

'Deeply regrettable'

The other review will look into the wider Department for Transport rail franchise programme.

Transport Secretary Patrick McLoughlin described the mistakes made by his department as "deeply regrettable and completely unacceptable".

He said: "A detailed examination by my officials into what happened has revealed these flaws, and means it is no longer acceptable to award a new franchise on the basis of the competition that was held.

"West Coast passengers can rest assured that while we seek urgently to resolve the future arrangements the trains that run now will continue to run with the same drivers, the same staff and timetables as planned."

FirstGroup was due to take over train services on the line - one of Britain's busiest - in December.

The Department for Transport said because of the decision to rerun the bidding process it would no longer be contesting the judicial review launched by Virgin Trains in the High Court.

And it said an announcement would be made about the suspension of staff while the investigation into the mistakes is carried out.

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http://www.bbc.co.uk/news/business-19809717

I get so angry when the state is involved in these things - why is the state running the railway system and the rail market? but hey, you know what they say it is when corporations and government are in bed together..