PASSENGERS were promised more seats, more services and new trains as a consortium involving Stagecoach and Sir Richard Branson's company Virgin was picked to operate the East Coat main line.

The firms already operate the West Coast main line and have promised improved services on East Coast which has been run in the public sector since 2009. The eight-year franchise will start in March.

Transport Secretary Patrick McLoughlin said the franchise was "a fantastic deal for passengers and for staff on this vital route".

But shadow transport secretary Michael Dugher said the travelling public had been "sold down the river" and added that he had written to the Department for Transport's permanent secretary asking him to postpone the East Coast franchise process.

Transport unions, upset that East Coast has not remained in the public sector, described the franchise announcement as "an utter betrayal" and an example of "sheer political spite".

Mick Whelan, general secretary of the train drivers' union Aslef, said the announcement was a "hugely disappointing and short-sighted decision which puts dogma ahead of all right thinking and common sense".

He said: "The East Coast has delivered excellent value and service for both passengers and taxpayers in the public sector over the last five years. All of this is now lost."

There had 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. But they missed out, as did the other shortlisted bidder, FirstGroup, which recently also lost its First Capital Connect and ScotRail franchises.

The decision effectively gives Virgin/Stagecoach a monopoly of the main London to Scotland routes. The new East Coast company will be called Inter City Railways.

Included in the terms of the eight-year franchise are:

l Proposals for more trains to London from Bradford, Edinburgh, Harrogate, Leeds, Lincoln, Newcastle, Shipley, Stirling and York.

l Journey times from London to Leeds reduced by 14 minutes, and from London to Edinburgh by 13 minutes.

l 65 state-of-the-art Intercity Express trains brought into passenger service from 2018, totalling 500 new carriages.

l Across the entire train fleet there will be 12,200 additional seats - a 50 per cent increase.

l A £140 million investment package to improve trains and stations.

Over the next eight years Inter City Railways will pay the Government around £3.3 billion to operate the franchise.

Mr McLoughlin said: "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.

"This Government knows the importance of our railways. That is why they are a vital part of our long-term economic plan, with over £38bn being spent on the network over the next five years."

Stagecoach group chief executive Martin Griffiths said: "A passion for customers, employees and the community is at the heart of our plans for the franchise.

"We want to build on the quality and pride of the people who will be joining our team."

Sir Richard Branson added: "Our long and fruitful partnership with Stagecoach has revolution-ised the West Coast line and train travel in the UK, and we are looking forward to bringing the lessons we have learnt across to the East Coast and building on the success there. We are excited to work with East Coast's great group of talented people, who we know will bring to life that famous and much-loved Virgin spirit under the new franchise."

Mick Cash, general secretary of the RMT union, said the reprivatisation of the line was "a national disgrace and an act of utter betrayal".

He added: "It is simply ludicrous to even contemplate reprivatisation when not only have there been two previous private sector failures on the East Coast route but when the public sector rescue operation has been such a stunning success."