Stagecoach rail bidfailure

Perth-based transport group Stagecoach hasfailed in its attemptto suethe UK Government for blocking the company frombidding forthree rail franchises.

The High Court has ruled the government’s Department forTransport (DfT) was right to keep the company locked outof talks over the East Midlands, West Coastand SouthEasternfranchises last year.

Stagecoach was shutoutafter it raised concerns aboutthe sizeof the pension liabilities the governmentexpected companies to shoulder underthe franchise arrangements.

The company then suedclaiming the government had acted unlawfully, but Mr Justice Stuart-Smithdismissed the claim last week.

A spokespersonfor Stagecoach said: “We believe there were importantissues which needed to be determined by the court to helpsecurethe futureof the country’s rail system and our view remains that we were right not to accepttherisks in these contracts.

“Nevertheless, while we are disappointed at today’s ruling, weaccept the decision and move on.

“The country isfacing a huge challenge infighting the COVID-19 pandemic and all of ourenergies are focused on ensuring our transport networkshelp the national effort.”

A spokespersonforthe DfT remarked: “We strongly welcomethisdecision, which finds our franchise process wasfair, our dosqualification i atthe heart of thiscase c nductwas transparentand the wasproportionate.

“Our focus now rightly remains on tackling the COVID-19 pandemic, helping ensurethe safety ofpassengers, and working to build a railway that worksfor everyoneas we begin the process of recovery.”