- 9 Jan 2015
Will be interesting to see how this one pans out...Stagecoach could receive “material” compensation from the taxpayer after rival rail operator FirstGroup was given the green-light to run competing services on the East Coast main line.
The bus and train company has started talks with the Government about potential compensation, following the decision of the Office of Rail and Road (ORR) last month to allow FirstGroup onto the London to Edinburgh route from 2021. Virgin Trains East Coast (VTEC), which is 90pc owned by Stagecoach, is also looking at a judicial review of the ORR’s ruling, Martin Griffiths, the chief executive of Stagecoach, confirmed.
Asked how much compensation Stagecoach may be entitled once FirstGroup begins its services, he said: “I don’t think we would be wise to put a numbers around that other than to say it would material enough to the franchise.”
Mr Griffiths was speaking as Stagecoach posted a 1.3pc increase in pre-tax profits, before exceptional items, to £187.4m...
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