Lord Adonis, the UK Rail Minister, underlined the government�s opposition to bailing out struggling train companies, saying there was �no question� of re-negotiating franchise deals.

Lord Adonis, the UK Rail Minister, underlined the government's opposition to bailing out struggling train companies, saying there was "no question" of re-negotiating franchise deals.

His comments come in the wake of discussions between the Department for Transport (DfT) and National Express, which operates services on the East Coast Main Line between London and Scotland.

National Express has been hit by falling revenue and a decline in passenger growth. It is believed the company has been lobbying for help to pay the £1.4bn premium it owes the government over seven years under the terms of the contract, which was drawn up before the recession hit rail travel and was based on much healthier estimations of passenger growth.

But Lord Adonis stressed yesterday that no train company was at present in default of its contractual obligations, and that National Express was keeping up its premium payments for East Coast.

He added: "There is no question of contracts being re-negotiated, but no company has told us that they are in default of their obligations. The situation is that National Express is continuing to make its premium payments."

Asked if National Express was in discussion about its East Coast contract with DfT, Lord Adonis replied: "We talk to train operating companies all the time."

It is understood that any move to bail out National Express would incite demands from other train operators for similar subsidies.

Transport union, RMT, has launched a political campaign aimed at securing the re-nationalisation of the East Coast line, with the union describing National Express as "debt-ridden".

RMT general secretary Bob Crow said: "The chaos facing the rail industry from the looming collapse of major franchises is unprecedented. We are calling for the government to step in now and begin the process of re-nationalisation to restore order to the railways.

"It would be political suicide for the government to bail out National Express and offer a copper-bottomed management fee guarantee in return for ripping up the East Coast franchise."

Lord Adonis was speaking at Euston station in London, as he officially opened the £8.9bn West Coast Main Line upgrade, which actually was completed last December. He also opened a new Virgin Trains ticket office at Euston.