Virgin Trains is to mount a last-gasp legal challenge to try to hold on to its West Coast main line franchise.
Virgin Trains is to mount a last-gasp legal challenge to try to hold on to its West Coast main line franchise.
Earlier this month, the Government announced that Virgin had lost out to transport company FirstGroup in the bidding war to run a new 13-year West Coast franchise from December.
Virgin boss Sir Richard Branson reacted angrily to the decision, branding the bidding process "insane" and threatening to end all involvement with the railways.
Today, Virgin, which has operated the West Coast line since 1997, said it was "commencing court proceedings" over the Government decision.
Following the West Coast decision by the Department for Transport (DfT), Transport Secretary Justine Greening had been due to sign off the contract this week.
Virgin is now hoping that its legal challenge will delay the signing.
In the past few days, Labour and members of the House of Commons Transport Committee said they hoped the final signing could be deferred until the matter could be debated in Parliament.
Sir Richard has expressed concerns that FirstGroup would not be able to live up to its financial and service-providing targets for West Coast.
Today, Sir Richard said: "We had hoped that Parliament or an external review would be able to scrutinise this badly-flawed process before the franchise was signed."
Responding to news of the legal challenge, FirstGroup said today: "We have every confidence in the DfT's process which is rigorous, detailed and fair and in which bids are thoroughly tested. There has been no complaint about the process, which was carefully described in advance, until Virgin Rail Group had lost commercially."
FirstGroup went on: "Our plans for the new InterCity West Coast franchise include faster journeys, new trains, more seats and more direct services from London than currently on offer.
"There will be improved wifi, better catering, refurbished stations and standard anytime fares will be reduced by 15% on average within the first two years. We look forward to welcoming passengers to their new and exciting InterCity West Coast service in December and creating a better railway for all.
"Our focus is to ensure a smooth transition with continuity for staff and passengers alike. We want to get on with delivering the many benefits and improvements we are offering without delay or disruption. We will continue to prepare for a successful start up of the new franchise on December 9."
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