ABERDEEN-based FirstGroup has agreed a one-year extension to its TransPennine Express rail franchise, which includes the Glasgow to Manchester Airport service.

FirstGroup chief executive Tim O'Toole, who last autumn expressed "bitter disappointment" over his company's loss of the ScotRail franchise to Dutch operator Abellio, highlighted the Aberdeen group's hopes of winning a longer-term renewal of its TransPennine contract. FirstGroup, which will stop operating ScotRail on March 31, has been shortlisted in the bidding for the new TransPennine Express franchise. The other shortlisted bidders are Stagecoach and a Keolis-Go-Ahead partnership.

Shares in FirstGroup rose 2.1p to 95.05p, following news yesterday of the one-year extension agreed with the Department of Transport.

FirstGroup noted this agreement meant the First TransPennine Express franchise would operate

beyond its current end date of March 31, 2015, extending now to April 1, 2016.

It said: "This [new] date is

coterminous with the Government's anticipated start for the new TransPennine

Express franchise. The group is shortlisted and looks forward to submitting a

bid later in the year to deliver significant improvements for customers and

value for money for taxpayers."

It added that, during the one-year extension period, it would "continue to

progress areas which passengers have identified as important, such as the

installation of free Wifi to key stations across the route and an enhanced

programme of customer service training".

First TransPennine Express came into operation in 2004. It operates on

three main routes across the north of England. And it runs inter-city

services between the north-west of England, Yorkshire and north-east England, and

into Scotland.

Setting out FirstGroup's stall in the looming competition for the new TransPennine franchise and highlighting passenger growth during his company's period in charge of this operation, Mr O'Toole said yesterday: "We have an excellent track record at First TransPennine Express, which

provides vital connections between key cities in the north of England and

Scotland."

He added: "Since the franchise began, our experienced team have worked hard to

introduce brand new trains, refurbished stations, increased frequency and

improved journey times. As a result, the service is more popular than ever, now

carrying 26 million passengers a year compared to 13 million in 2004."