Edinburgh to London train line to be come under state ownership

Edinburgh to London train line to be come under state ownership

Edinburgh to London train line to be come under state ownership

Stagecoach and Virgin were supposed to run services on the line until 2013, but the government had previously agreed to let them walk away from the agreement three years early.

London North Eastern Railway will be taking over the East Coast Mainline from 24th June 2018.

In a statement to the MPs, Mr Grayling denied the East Coast line was a failing rail service but admitted Stagecoach and Virgin stood to lose around £200m. Virgin and Stagecoach then announced they were negotiating revised terms.

The East Coast main line franchise is a joint venture of Stagecoach, which owns 90% of the franchise, and Virgin, which holds 10%.

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Stagecoach chief executive Martin Griffiths said he was "surprised and disappointed".

"However, we respect the government's decision".

Stagecoach pledged to "work constructively with the DfT and the OLR in the weeks ahead to ensure a professional transfer to the new arrangements".

All tickets booked with Virgin Trains East Coast will be valid on all London North Eastern Railway.

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Transport Secretary Chris Grayling told parliament the East Coast Main Line franchise would be halted after it made considerable losses under a private company.

After 2020 the expectation is for the East Coast mainline to be operated on a new "public-private partnership model".

He said: "Every announcement is a smokescreen to divert attention from the failings of the Transport Secretary's policy".

"After three shambolic private sector failures on the East Coast the message should now sink in that these cowboys can not be trusted and should be locked out of the system on a permanent basis".

Passenger and freight rail services in Britain were privatised in the 1990s, when routes were grouped into franchises and operators bid to run services for a set number of years. "Because they can not do it".

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