LONDON Midland’s managing director Steve Banaghan has quit to take up a new position overseas.

He is succeeded by Mike Hodgson, formerly operations director at Southeastern, and also in a recent move it was announced that Mac Mackintosh, formerly South West Trains engineering chief, has been appointed the company’s acting engineering director for an initial six-month period following the retirement of John Barlass.

Mr Banaghan said in a statement: “After a long career working predominately in the UK rail industry, I am taking up an opportunity to work abroad again, working in a different transport system.

“Whilst the last few months have been challenging for everyone involved with London Midland, the business has begun to improve performance, and I have no doubt that it has a successful future ahead.”

Mr Banaghan’s departure from the Govia company follows months of performance problems chiefly as a result of reliability problems with the newly delivered pounds 190 million fleet of 37 Class 350/2 Desiro electric trains and infrastructure failures on the recently modernised West Coast main line.

In the lead up to Christmas last year and after the New Year London Midland was hit by numerous train cancellations caused by staff sickness with high levels of staff absence at some of the train crew bases, which led to a large number of Birmingham to Liverpool services being cancelled.

At one stage figures showed that only 75 per cent of services on West Coast routes were arriving right time.

At the time London Midland said the company was continuing to recruit and train new staff members – drivers and senior conductors – to ensure that manpower levels remained at the right level. There had been “ short term logistical and resourcing problems,” said the company.

London Midland was created as a new franchise taking  in parts of the old Central Trains area – of which Mr Banaghan was also MD – and Silverlink – both originally National Express companies.

Milton Keynes Rail Users said that following pressure from rail user groups, MPs, the Office of Rail Regulation and local and national press, London Midland had improved considerably over the past few months. “But whether the improvements made bring lasting benefits remains to be seen,” said a statement.

Rail union RMT has announced it is tomorrow to begin balloting its members working in stations, clerical, retail, booking office and supervisory roles at London Midland for both strike action and action short of a strike in a dispute over enhanced payments for Sunday working it wants brought into line with those of conductors and drivers. The ballot closes on 30 July.