ON THE GROUND

Gov­ern­ment takes back East Coast line

The Business Travel Magazine - - The Review -

RAIL SER­VICES on the East Coast Main Line are to be brought back un­der gov­ern­ment con­trol due to the fail­ure of Stage­coach and Vir­gin, the cur­rent op­er­a­tors.

Trans­port sec­re­tary Chris Grayling in­formed Par­lia­ment that the con­tract is to be ter­mi­nated on June 24. The De­part­ment for Trans­port will run the line un­der the name of Lon­don North East­ern Rail­way (LNER) for at least two years un­til a new con­tract is granted. “The route has its chal­lenges but it is not a fail­ing rail­way,” said Grayling. “Stage­coach and Vir­gin Trains got their bid wrong and they are now pay­ing the price. They will have lost near £200mil­lion meet­ing their con­tracted com­mit­ments.” The com­pa­nies were con­tracted to pay £3.3bil­lion to run the fran­chise un­til 2023.

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