Arriva sues government for £200m over rejected East Midlands bid Arriva sues government for £200m over rejected East Midlands bid

The disqualification of Arriva from the East Midlands franchise competition could cost taxpayers £200 million, if a legal claim succeeds. The Department for Transport said Arriva’s bid for the franchise was ‘non-compliant’, because it had attempted to reduce possible risks from having to help fund railway pension shortfalls which could run into several billion pounds. Stagecoach, Virgin and SNCF were all turned down for the West Coast Partnership and Stagecoach for East Midlands and South Eastern, for the same reason. Stagecoach has also started legal action. The DfT says it has ‘total confidence in our franchise competition process and will robustly defend decisions that were taken fairly’.

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