Posted 5th August 2019 | 1 Comment

5 August: news in brief

High Court refuses to reject claims from frustrated franchise bidders

THE HIGH COURT has rejected a government attempt to quash legal challenges from Stagecoach, Virgin and Arriva, which argue that the rejection of four franchise bids in April was unlawful. In each case the reason was the same, because the bidders had attempted to reduce what they claim were virtually open-ended risks connected with pension funding. Stagecoach, in partnership with Virgin and SNCF, was ruled out of the West Coast Partnership competition, while Stagecoach was also disqualified from separate bids for East Midlands and South Eastern. Arriva was also disqualified from the East Midlands competition, leaving the only other bidder Abellio as the winner. It will take over East Midlands on the 18th of this month. Arriva alone is claiming £200 million from the Department for Transport. The DfT continues to maintain that athough it does not comment on legal proceedings, it has ‘total confidence’ in its handling of the bids.

Reader Comments:

Views expressed in submitted comments are that of the author, and not necessarily shared by Railnews.

  • jak jaye, surrey

    Typical High Court siding with anyone except Government i.e. us taxpayers
    The moral of this shambles is:if you are not prepared to take on the pension side of any organisation walk away simples as Teresa May once said!

Have Your Say

Please read Guidance Notes for Contributors

Submitted comments are subject to approval prior to public posting. Railnews reserve the right to reject, alter or censor any submissions. Railnews also reserve the right to reproduce submissions in any format.

Railnews may, from time to time, send out marketing emails to subscribers and website users. If you would prefer not to receive these emails, please tick this box.