Government to continue running LNER to at least 2023

LNER, which operates the Intercity East Coast franchise, is to remain nationalised for another three years with the option for a further extension to 2025.

Directly Operated Railwaysowned LNER is Governmentcontrolled and has been since replacing Virgin Trains East Coast on June 24 2018. It is one of two franchises in the Operator of Last Resort (OLR) stable - the other is Northern.

The initial two-year deal that replaced Virgin Trains East Coast expired on June 28.

RAIL first reported on the planned extension in July last year ( RAIL 884), when a Prior Information Notice was issued.

At that point, a Department for Transport spokesman said: “Claims of a long-term extension are absolute nonsense.”

An LNER spokesman told RAIL: “This will allow us to continue delivering planned improvements for customers, including completing the introduction of Azuma trains and associated increase in services, destinations and journey times as well as our enhanced customer experience.”

When VTEC was nationalised and OLR put in place, it was still expected that the East Coast Partnership would eventually replace the previous deal, but that is now not happening.

Before making major franchise decisions, the DfT is awaiting the outcome of the Williams Review, which according to Secretary of State for Transport Grant Shapps is recommending Transport for London-style concessions ( RAIL 908).

Meanwhile, LNER has also confirmed it will retain seven rakes of Mk 4 coaches beyond the end of July, as well as 12 Class 91s. These will be restricted to the LondonLeeds/York routes from September.

A spokesman said: “They will be on these routes as it allows us to more easily maintain competency across all crews.”

He also confirmed that despite trials with shorter formations, they will remain as nine-car sets.