Virgin Trains East Coast franchise to end 24 June 2018 and is temporarily re-nationalised

[Tetchytyke]

Correct. All franchises are held in what are known as 'Special Purpose Vehicles,' specifically to limit the liability of the parent company (or companies if it's a joint venture) in the event of something going wrong.

That makes it legally almost impossible to cross-penalise.

There's no reason why cross-penalties couldn't be put in contracts. For existing contracts, I do agree with you.

I like the idea of revoking passports or otherwise impacting on preferred bidder status. And not just here, either; look how many car wrecks Serco were able to walk away from without impact.

There needs to be consequences for defaulting on your obligations.

 

[Bletchleyite]

In other news, shares in businesses producing printed vinyl TOC name stickers go through the roof...

 

[Tetchytyke]

statement

Also getting released without Labour being told, and on a day when it was Labour's time to debate.

Shameful by the Tories. But that's pat for the course.

Glad to see the back of Branson.

 

[mallard]

The BBC have just reported that the East Coast franchise going under "public control". Presumably that means a resurrection of DOR. (Darn, beaten to it...)

Presumably, this is bad news for the Virgin/Stagecoach bids on the WC and EM franchises too...

 

[Bletchleyite]

There needs to be consequences for defaulting on your obligations.

Absolutely this. It does seem that Stagecoach is going to lose the full value of the performance bond (from their press release) though so it is going to hit them in the pocket.

And yes, I agree. New franchises should include a penalty for default, payable by the bidding organisations and not some separate organisation, equal to or exceeding the agreed premia (or a fixed sum in the case of a subsidised franchise).

 

[HSTEd]

Grayling must be feeling a bit red faced now.... after all the attacks on Corbyn in the press about the evils of public ownership....

 

[theironroad]

Grayling: we can't allow franchises to have unlimited losses as otherwise nobody would bid for franchises. Privatisation and free markets allow for exactly that.

 

[Masbroughlad]

How long for and then what?

 

[LLivery]

London & North Eastern Railway

 

[SilentGrade]

How long for and then what?

Unsure, statement stays that East Coast partnership to be built straight away from June 24th under a LNER brand

 

[theironroad]

How long for and then what?

Bringing forward the new public/private model previously announced under a 'LNER' long term brand.

 

[385001]

Also getting released without Labour being told, and on a day when it was Labour's time to debate.

Shameful by the Tories. But that's pat for the course.

Or the Scottish Transport Minister.

@HumzaYousaf Last time I spoke to Sect of State for Transport he promised me advanced notice of what his intentions were for East Coast Franchise due to its impact on Scotland. Dissapointing he has gone back on his word and hasn't spoken to me. Seems it has been leaked to media beforehand.

 

[nlogax]

An end to chatty branding (if LNER don't carry on VTEC's tradition). Ahhh. (edit - not the speaking bogs, those are VTWC)

Curious to see how much will actually change.

 

[700007]

VTEC to end on the 24th June 2018.

 

[SilentGrade]

DfT exploring the option of taking over some Great Northern Services for the new LNER. All subject to review apparently

 

[Taunton]

There's nothing wrong with the revenue potential of the ECML. The problem is the voracious demand by the Dept of Transport (with the Treasury behind them) for the franchise holder to both squeeze every penny out of the passengers, and forecast the economic level of the country for years to come, which regularly comes in quite different to what even the government forecasts.

I am sure the current holders have already taken a significant hit on things not coming in as anticipated, in particular Network Rail (a government organisation) not delivering at all what was promised when the franchise was offered, and little/no sign of it in the future.

I like the idea of revoking passports or otherwise impacting on preferred bidder status.

That's easily done. And then you would never get any competent bidders. Any ideas then?

 

[LNW-GW Joint]

So what does that mean, back to British Rail?

No, it's back to "LNER" on 24 June, with GN services likely to be reintegrated into the main line service when TSGN finishes.
Public-private partnership, run by OLR (operator of last resort) initially.
Stagecoach and Virgin keep their franchise passport to run other franchises.

 

[WatcherZero]

East Coast will be terminated 24th June, will become DOR run LNER from that date, essentially bringing forward the previously announced partnership from 2020 to 2018 with the merging of track and rail management phased in. Mayor of West Midlands will be a board advisor. Stagecoach and Virgin will keep their passports after independent review.

Great Northern being transferred to London Overground after end of TSGN being discussed with London mayor as well as moving Kings Cross services out of Great Northern.

 

[gavin]

New board with independent members to oversee the process from VTEC to LNER

 

[Iskra]

Grayling must be feeling a bit red faced now.... after all the attacks on Corbyn in the press about the evils of public ownership....

I bet he's privately sick of the franchising system now.

 

[Kite159]

Farewell VTEC

 

[alexl92]

Soooo, all the Class 91s, 43s and DVTs being painted into Apple Green or Garter Blue, and the Mk3 and Mk4 sets being wrapped in a distinctly teak-like effect?

 

[superalbs]

Farewell VTEC

 

[Rail Blues]

No, it's back to "LNER" on 24 June, with GN services likely to be reintegrated into the main line service when TSGN finishes.
Public-private partnership, run by OLR (operator of last resort) initially.
Stagecoach and Virgin keep their franchise passport to run other franchises.

I wonder what 800s will look like in varnished teak?

 

[king_walnut]

Apologies for my ignorance, but can someone briefly summarise to me why the East Coast Mainline has been so controversial over the past however many years? I've used it a fair few times and never really found much to complain about.

 

[mallard]

At least we're rid of that stupid "Ass-zoomer" name for the East Coast 80x units (since that's a Virigin/Stagecoach-owned trademark).

Anyone want to speculate what the "LNER" livery might look like? Obviously the 91s/Mk4s/HSTs will recieve minimal treatment since they're due for withdrawal soon(ish). A full repaint is unlikely, so the white base colour will probably remain, but the Virgin red will have to go... How about Garter Blue on the bi-modes and Apple Green on the 801s?

 

[Failed Unit]

Bet the people of Lincoln are nervous. Will they ever see a more frequent service. Last time it was nationalised they soon dropped national expresses commitment to serve the city more frequently.

 

[Taunton]

Anyone want to speculate what the "LNER" livery might look like?

Varnished teak.

 

[cactustwirly]

I'd

At least we're rid of that stupid "Ass-zoomer" name for the East Coast 80x units (since that's a Virigin/Stagecoach-owned trademark).

Anyone want to speculate what the "LNER" livery might look like? Obviously the 91s/Mk4s/HSTs will recieve minimal treatment since they're due for withdrawal soon(ish). A full repaint is unlikely, so the white base colour will probably remain, but the Virgin red will have to go... How about Garter Blue on the bi-modes and Apple Green on the 801s?

I'd imagine it'll be red, to keep costs down.
I was actually expecting a generic 'east coast trains' brand, to slap onto the current VTEC livery

 

[ainsworth74]

Bet the people of Lincoln are nervous. Will they ever see a more frequent service. Last time it was nationalised they soon dropped national expresses commitment to serve the city more frequently.

A question was put to him by MPs from Middlesbrough and Shipley about planned service improvements and Grayling confirmed that they were all going ahead. Some may be delayed depending on Network Rail's ability to deliver any enabling works but nothing was being cancelled.