Posted 28th August 2012 | 1 Comment
DfT still set to confirm West Coast franchise

Sir Richard Branson has described the franchise process as 'insanity'
THE DEPARTMENT FOR TRANSPORT is showing no sign of reconsidering its decision to award the Intercity West Coast contract to FirstGroup, as the countdown to the final signatures continues.
The controversial £5.5 billion franchise can be signed-off after midnight tonight, which is when a 14-day 'cooling off' period expires.
The deal is being questioned by losers Virgin as well as opposition Labour MPs and two Commons Select Committees, while more than 130,000 people have signed a public e-Petition calling for the matter to be debated by the House of Commons.
It has been reported that Virgin could challenge the award of the franchise to First by petitioning for a judicial review, but it would need to start the legal process before the new contract is finally signed.
FirstGroup has continued to defend its proposals. They include the payment of £5.5 billion-worth of premiums at net present value over 13 years and four months, which is £700 million more than Virgin's offer, as well as 11 new 6-car trains, services to new destinations, lower Standard Anytime fares and a new intermediate class between Standard and First.
First is also insisting that its predictions of revenue are realistic and achievable. Vernon Barker, the managing director of FirstGroup Rail, told Railnews that he considered Virgin's interventions and criticisms 'outrageous', because they had caused West Coast staff needless concern about their jobs.
Meanwhile Richard Branson, who described the franchise letting process as 'insanity' after FirstGroup's victory was announced, has offered to run West Coast temporarily on a not-for-profit basis to allow time for the proposed contract to be reconsidered. He has also revealed that Virgin is planning to launch new air routes from London to Manchester and Scotland.
In spite of the protests, the DfT is showing no sign of giving way. A spokesman explained: "We note the offer that one of the bidders appears to have made via the press.
"However, the winning bidder was decided by a fair and established process and no reason has been advanced to convince DfT not to sign the agreement."
FirstGroup is due to take over Intercity West Coast from Virgin on 9 December.
Reader Comments:
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Billy Bell, Beith, UK
Question for Branson. Would the bidding process still be insane if your company had won?