Branson plots challenger to Eurostar rail services

Billionaire Virgin boss seeks to break monopoly of trains running through the Channel Tunnel

SIR RICHARD BRANSON is preparing a bid to break Eurostar’s monopoly on Channel Tunnel rail services, The Sunday Telegraph can reveal.

The billionaire is plotting a rival operation and a return to Britain’s rail sector four years after his Virgin Trains business ended operations in the UK.

It is understood that Phil Whittingham, Virgin Train’s former boss, has been tasked with spearheading Sir Richard’s challenge to Eurostar, which is at an early stage. However, sources said preparations were already under way for one of the balloon enthusiast’s signature publicity stunts at St Pancras International.

Mr Whittingham has been holding discussions with infrastructure officials along the prospective route, which currently runs from London to Paris, Brussels and Amsterdam.

He worked for the Virgin Trains franchise for 22 years but left for First Group in 2019. Mr Whittingham was subsequently made managing director of Avanti but left late last year after a string of timetable failures sparked anger among passengers and politicians.

An industry source said Virgin “would have a strong chance of succeeding” on any cross-Channel routes given its experience running a UK trains franchise. An attack on Eurostar’s monopoly would recall 73-year-old Sir Richard’s successful campaign to open up transatlantic airline routes previously dominated by British Airways.

A Virgin spokesman said: “Virgin doesn’t comment on rumour or speculation.” The prospect of Sir Richard shaking up cross-Channel travel comes just weeks after Spanish company Evolyn also revealed plans for a new service to challenge Eurostar.

Evolyn and Virgin are among a group of contenders exploring new services to France and beyond, with the potential for a further two new bidders in the coming weeks. It comes amid liberalisation of the train network in Europe, making it easier for challengers to bid for new services. The high-speed rail network in Europe is now open access, meaning companies who are not operating routes can bid for space on the tracks, following new EU rules in 2016.

An attempt to take on Eurostar would mark a show of regained strength for Sir Richard after his business empire nearly collapsed during the pandemic.

He said earlier this year that he lost around £1.5bn owing to Covid, which was fuelled by Virgin Atlantic’s planes being grounded by lockdowns.

His satellite launch rocket company Virgin Orbit also filed for bankruptcy in the US in April – which followed its failed mission from Cornwall.

However, he was dealt an upturn in fortunes last month when he succeeded in a High Court dispute against US train operator Brightline.

Virgin successfully sued Brightline for £100m after the latter cancelled a deal to use the UK company’s brand in 2020 – just 18 months after an agreement was signed.

It is understood Brightline is preparing to appeal against the decision.

As for Eurostar, the high-speed rail service has held a relative monopoly on rail journeys from London to Paris ever since they were introduced in 1994.

Campaigners have long argued for greater competition on the cross-Channel route in a bid to reduce fares for passengers. The 31-mile Channel Tunnel, which Eurostar runs through, is owned by infrastructure company GetLink.

GetLink declined to comment on Virgin’s prospective plans.

Evolyn was contacted for comment.