(qlmbusinessnews.com Mon. 20th May, 2024) London, UK —
Virgin Trains Eyes Return to West Coast Rail Services.
Virgin Trains is poised to make a comeback on the West Coast route between London and Glasgow, five years after losing the franchise.
This move would place Virgin in direct competition with Avanti West Coast, the current operator which took over the contract in 2019.
Virgin Trains previously operated the West Coast service, running from London Euston via Birmingham and Manchester to Scotland, for 22 years before being barred from bidding for the franchise.
Virgin Group has confirmed to the BBC that it has submitted an application to the Office of Rail and Road (ORR) for an Open Access licence.
An Open Access licence allows a company to operate rail services without state subsidies, shouldering the financial risks independently. This contrasts with franchised operators like Avanti, which run routes under government contracts.
A Virgin Group spokesperson stated: “While this application is just the first step towards exploring what might be possible, we think Open Access is the way forward. Open Access increases consumer choice and competition, both of which Virgin has always supported.”
Since Avanti took over the franchise, it has faced significant criticism for delays and cancellations.
In September, the Department for Transport (DfT) extended Avanti West Coast's contract for up to nine years. Avanti is a joint venture between FirstGroup and Trenitalia, an Italian train operator.
However, in March, Greater Manchester Mayor Andy Burnham called for Avanti to be stripped of the contract. “I’ve completely run out of patience. I cannot accept this railway line being left in this perennial state of chaos,” he said.
The DfT dismissed such a move, arguing that it “would just cause more upheaval for passengers rather than solving the challenges the operator is facing”.
Virgin Group has applied to operate services between London Euston to Preston and Rochdale via Manchester and Bolton, as well as to Birmingham, Liverpool, and Glasgow.
Previously, Virgin Trains was a joint venture between Sir Richard Branson's Virgin Group and Stagecoach, the Scottish bus and rail company. However, a Virgin spokesperson clarified that the current application has been made independently. If successful, Virgin would manage the trains on its own.
When Virgin Trains lost the contract, it had facilitated nearly 500 million journeys. At the time, Sir Richard expressed his devastation over the loss.
Stagecoach was disqualified from bidding for the franchise, along with two others, for failing to meet the DfT's requirements on pensions and future funding.
Last year, Sir Richard hinted at a return to the rail industry, telling the Financial Times in December: “I would not be surprised if one day Virgin is back in trains.”
A spokesperson for Virgin Group added: “Virgin is exceptionally proud of everything Virgin Trains and its wonderful onboard teams achieved in the UK. We're confident customers would welcome Virgin Trains back, providing them with much-needed choice and competition.”
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