Stagecoach legal threat

STAGECOACH has upped the ante in its battle with the Government after it was disqualified at the 11th hour from bidding for three rail contracts over a row about pensions liabilities.

The rail and bus operator said it has written to the Department for Transport and it is understood the letter is a prelude to High Court action. Stagecoach has asked for the DFT to respond to it by today.

Stagecoach wants to know why its bid for East Midlands, which it currently operates, was deemed ‘noncompliant’ at the last minute. It claims the Government has passed the burden of underwriting liabilities for the huge Railway Pension Scheme on to rail operators for the first time.