Virgin wins East Coast main line

The Department for Transport (DfT) said the consortium, which includes Virgin and transport company Stagecoach, will start the East Coast franchise in March next year .

The award of the new franchise marks a return to the private sector for East Coast which has been run by the DfT since 2009 following the withdrawal of National Express.

Labour and transport unions had fought to keep East Coast in the public sector, pointing to the good returns it has made to the Treasury.

There has been speculation that a consortium of Eurotunnel and French company Keolis, which is 70 per cent owned by French state railway SNCF, had been chosen as the new East Coast operator.

But Eurotunnel/Keolis have now missed out, as has the other shortlisted bidder FirstGroup, which recently lost its First Capital Connect and ScotRail franchises.

The new operator of the London to Scotland East Coast route will be called Inter City Railways.

Under the terms of the eight-year franchise there will be 23 new services from London to key destinations, with 75 more station calls a day and plans for direct links to Huddersfield, Sunderland, Middlesbrough, Dewsbury and Thornaby

There are also proposals for more trains to London from Bradford, Edinburgh, Harrogate, Leeds, Lincoln, Newcastle, Shipley, Stirling and York

Journey times from London to Leeds will be reduced by 14 minutes.

Transport Secretary Patrick McLoughlin said: This is a fantastic deal for passengers and for staff on this vital route. It gives passengers more seats, more services and new trains.

“We are putting passengers at the heart of the service. I believe Stagecoach and Virgin will not only deliver for customers but also for the British taxpayer.