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Virgin Group explores the return of Virgin Trains as an Open Access operator

Snow1964

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They have the agreements drafted, however they are waiting for the rolling stock to be released by the existing operator who in turn are waiting for their new rolling stock.
Any agreements are not in public domain, so don't know if there is a backstop date for getting the rolling stock, a date where they definitely have them to start the service. Or if it can potentially roll on a few years if current user is slow in accepting their new trains.
 
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Class15

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Honestly I hope this happens. Avanti is utterly useless whenever I have travelled on it, and Virgin was on a different level really. Fingers crossed it goes ahead.
 

The Planner

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Honestly I hope this happens. Avanti is utterly useless whenever I have travelled on it, and Virgin was on a different level really. Fingers crossed it goes ahead.
Why would anyone take paths off Avanti and give them to an OAO considering the loss of revenue, even if it is no longer a franchise per se?
 
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Honestly I hope this happens. Avanti is utterly useless whenever I have travelled on it, and Virgin was on a different level really. Fingers crossed it goes ahead.
The reported poor service by Government appointed operator Avanti WC has clearly encouraged Virgin and Lumo to file applications to operate open access train services on the West Coast Mainline routes. If Avanti WC had provided a good, reliable and therefore popular train service I doubt if these two open access applications would have been made. The Department for Transport in their letter dated 4 February 2025 assert reasons including claimed levels of abstraction as well as doubts about available paths as to why the Office of Rail and Road should not approve these two open access applications but the Office of Rail and Road has the legal responsibility to make the decision to approve or not based on their legal guidelines. If the Government including the Department for Transport and HM Treasury do not want these open access applications they should ensure that Government appointed operator Avanti WC provides a good, reliable and therefore popular train service on the West Coast Mainline routes. The Government could try to change the legal guidelines on open access but this requires another Act of Parliament and the passage of such new legislation is unlikely to be as smooth as the Passenger Railway Services (Public Ownership) Act, especially if some Government appointed operators continue to provide poor service.
 
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JonathanH

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If Avanti WC had provided a good, reliable and therefore popular train service I doubt if these two open access applications would have been made.
I'm not so sure. If London to Manchester is the most lucrative flow on the network, and there is perceived to be a spare path, it is attractive to an open access operator, no matter how popular or unpopular the franchised operator is.
 

Clarence Yard

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Exactly this. You leave a gap in an intercity timetable and the OA operators will be wanting to fill it. How well or otherwise the incumbent is doing is irrelevant.

In franchise contests gone by, one of the questions that the DfT wanted answering (verbally only, of course) was, “have you filled up the timetable?!” They also didn’t want any spare stock to be made available for use by the OA operators.

For those of us involved in both Franchised and OA operations, that always brought a wry smile!
 
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The quantum of services they are after is beyond what we have seen from Open Access previously as well. They are effectively looking to take up Avanti's currently unused rights particularly on the Liverpool corridor.
Which Avanti will suddenly start running trains back in as soon as they can.
The following on Virgin Form P makes this clear and I assume the letter dated 28 February 2025 from Avanti West Coast to Network Rail and the Office of Rail and Road sinks the Virgin open access application.
Consideration has also been given to our understanding that following paths are not currently being fully utilised by the respective operator:
Avanti West Coast: Euston to Liverpool.
Avanti West Coast: Euston to Birmingham New Street.
Northern: via the Castlefield Corridor.
TransPennine Express: via the Castlefield Corridor
During the December 2025 timetable, FTWCRL plans to introduce all remaining additional services on the Liverpool route, operating a total of 319 trains per weekday across the network

Virgin have now filed an appeal against a Network Rail decision in an attempt to make accessible the London Euston to and from Liverpool Lime Street paths currently held by Avanti West Coast. This is getting really complicated. I have no idea what will happen here. The Government has not so far even published the proposed new legislation that could change the legal position.
This appeal relates to the decision by Network Rail ("NR") dated 5 August 2024 (the "Notice") to modify the Track Access Contract of First Trenitalia West Coast Rail Limited's ("Avanti") dated 1 December 2022 as set out in Appendix 1 of the Notice.
The Notice is set out at the following link:
Part J Notification to the ORR - Temporary surrender of rights 2.pdf
The applicant considers that, in respect of its decision, NR failed to correctly follow and incorrectly applied the required process for the surrender of access rights, as set out in Part J of the Network Code.
In particular, NR incorrectly accepted a “temporary” voluntary surrender of access rights from Avanti. Had the correct process been followed, NR would have served a Failure to Use notice under J4 or consulted other operators under J2.6.
The impact is that paths that should have been made available for other operators to bid for (from the December 2025 timetable change date) due to Avanti’s non-use have instead been protected for Avanti.
For these reasons, Virgin requests that the ORR overturns NR’s decision, as set out in the Notice, and instructs the correct application of Part J.
I think the Network Rail decision document is the following. It is dated 5 August 2024 and refers to access rights between London Euston and Liverpool Lime Street.
Network Code Condition J2.1.3: Part J Notification to the Office of Rail and Road
 
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Snow1964

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I think Virgin have got the lawyers to analyse the process, in layman's terms they have looked for sloppy procedure where things were not 100% legally correctly done.

My take is that post Covid there were some service reductions, and the unused track access paths were left to drift, not formally booked as either temporary reduction or no longer needed. The unused paths eventually reached time limits where should have been used again, or extended if temporary reduced, or returned, and these are now subject to dispute as allegedly not formally retained correctly

What they are presumably saying is the paths should be available to open access because (probably due to carelessness) Avanti didn't follow the correct rules for retaining them, and Network Rail haven't classified them as still needed (under the correct clause), therefore under another clause (in network rules and code) should default to unused status and available to be taken by other operators
 
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The Planner

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I think Virgin have got the lawyers to analyse the process, in layman's terms they have looked for sloppy procedure where things were not 100% legally correctly

My take is that post Covid there were some service reductions, and the unused track access paths were left to drift, not formally booked as either temporary reduction or no longer needed. The unused paths eventually reached time limits where should have been used again, extended, or returned, and these are now subject to dispute as allegedly not formally retained correctly

What they are presumably saying is the paths should be available to open access because (probably due to carelessness) Avanti didn't follow the correct rules for retaining them, and Network Rail haven't classified them as still needed (under correct clause), therefore under another clause (in network rules and code) should default to unused and available to be taken.
COVID says hello. No one would have hardly any rights left if that is the case unless someone said Part J didn't apply.
 

Snow1964

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COVID says hello. No one would have hardly any rights left if that is the case unless someone said Part J didn't apply.
I suspect the legal framework was pre covid, and covid could be described as a force majeure situation. (an event beyond the control of the parties to the contract, making fulfilment impossible or impractical)

Exercising rights under force majeure probably required certain notifications and put backstop time limits that limit time after the event ends (most legal contracts are this way), and if someone just assumed rights could be retained beyond the period of force majeure event, might fall foul of clever lawyers
 

cle

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Do Virgin actually want to run trains to Liverpool? Knowing that the second c807 hourly is incoming (or are they trying to nab that same slot?)

Are there any non-standard / non-clockface slots (as per ECML) they could go for? Or another route to Manchester (per Lumo to Vic, or maybe via Styal?)

Finally, what ever happened to the LNW Crewe extension to Manchester that was touted?
 

JonathanH

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Finally, what ever happened to the LNW Crewe extension to Manchester that was touted?
2026 was the expected date - see https://www.railforums.co.uk/thread...s-350-2-withdrawal.275457/page-4#post-7094111 - but I guess your point is whether an application has been made.

The relevant web page for Destination Manchester https://www.londonnorthwesternrailway.co.uk/travel-information/whats-new/manchester is still up but clearly hasn't been updated.
What happens next?

We will submit our detailed proposals to the Office for Rail and Road for consideration in the second half of 2024. In the meantime we will work closely with other train operators, Network Rail and partners in the Manchester area to iron out the finer details of the proposal.

All the different plans to reach Manchester via Eccles, including the LNR plan, are in competition for the paths.
 
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The Middle

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Do Virgin actually want to run trains to Liverpool? Knowing that the second c807 hourly is incoming (or are they trying to nab that same slot?)
It is that slot the are after.

Are there any non-standard / non-clockface slots (as per ECML) they could go for? Or another route to Manchester (per Lumo to Vic, or maybe via Styal?)
There is an identified open access departure every hour from Euston however this would be a competing track access application against Lumo Rochdale, WSMR .etc. as well as being taken in some hours by Lumo Stirling which already has rights.
Finally, what ever happened to the LNW Crewe extension to Manchester that was touted?
Going through the same track access applications as Lumo Rochdale, WSMR, Virgin Rochdale/Preston.
 

takno

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I suspect the legal framework was pre covid, and covid could be described as a force majeure situation. (an event beyond the control of the parties to the contract, making fulfilment impossible or impractical)

Exercising rights under force majeure probably required certain notifications and put backstop time limits that limit time after the event ends (most legal contracts are this way), and if someone just assumed rights could be retained beyond the period of force majeure event, might fall foul of clever lawyers
There isn't any appetite in government to allow this to happen, so ultimately it's not going to happen. Virgin might take it to court and conceivably be offered compensation, but in terms of being awarded the rights by a court there's basically no chance. They are looking to do something which is very much not in the public interest, on the basis that they should have the right to bid based on a narrow reading of laws which the government is already looking at removing. It's not like there's a European court they can appeal to.
 

Snow1964

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There isn't any appetite in government to allow this to happen, so ultimately it's not going to happen. Virgin might take it to court and conceivably be offered compensation, but in terms of being awarded the rights by a court there's basically no chance. They are looking to do something which is very much not in the public interest, on the basis that they should have the right to bid based on a narrow reading of laws which the government is already looking at removing. It's not like there's a European court they can appeal to.
I don't think you fully understand how the High (commercial) Court works. They have to apply the law as it stands, not consider preference / intention of possible future changes.
 

The Planner

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I don't think you fully understand how the High (commercial) Court works. They have to apply the law as it stands, not consider preference / intention of possible future changes.
Personally, I doubt Virgin will get any paths regardless. NR could get a slap on the wrist for not following process properly if that is the case, but not a lot else.
 

takno

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I don't think you fully understand how the High (commercial) Court works. They have to apply the law as it stands, not consider preference / intention of possible future changes.
If the High Court has a plan for getting extra trains down the Castlefield Corridor then I'm sure we'd all be excited to hear it.
 

Snow1964

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Personally, I doubt Virgin will get any paths regardless. NR could get a slap on the wrist for not following process properly if that is the case, but not a lot else.
I see it differently (having worked for a while in transport by International shipping). If they left themselves vulnerable by letting things drift, and failing to keep to their statutory requirements, which then stops a company using their facilities to make a commercial profit. Then Court will see it commercially (not some token slap on risk).

Taken to the extreme view, might award compensation for minimum reasonable loss of profit (same principle as a restaurant charging for cheapest meal for no show, if it blocks another customer). So might walk away with compensation for not being able to operate the service and make a tidy profit, even if they didn't actually getting as far as actually running it.

There can be a wide difference between what nice people think is a fair outcome, and what contractually and legally obligations say is the outcome.
 

takno

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I see it differently (having worked for a while in transport by International shipping). If they left themselves vulnerable by letting things drift, and failing to keep to their statutory requirements, which then stops a company using their facilities to make a commercial profit. Then Court will see it commercially (not some token slap on risk).

Taken to the extreme view, might award compensation for minimum reasonable loss of profit (same principle as a restaurant charging for cheapest meal for no show, if it blocks another customer). So might walk away with compensation for not being able to operate the service and make a tidy profit, even if they didn't actually getting as far as actually running it.

There can be a wide difference between what nice people think is a fair outcome, and what contractually and legally obligations say is the outcome.
So, as everybody else said, they may well be awarded compensation, but there isn't any realistic prospect of them actually running trains.
 
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With a large majority in the House of Commons the Government can change the law on open access passenger train services and already plans to do so. The risk I see from the Virgin open access application in particular and the legal moves aimed at acquiring paths from the Government appointed operator Avanti West Coast is it will lead to the Government changing the law sooner and in a way that is less favourable to open access passenger train services than originally planned. I cannot see it leading to Virgin operating any of the open access train services in their application but it could scupper other open access passenger train service applications which may otherwise have been approved.
 
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Clarence Yard

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Reading the submission, I’m not sure Virgin have got a chance on this one.

Part J is quite clear, you have to use a right at least once in 13 weeks during that timetable period but if you only run the train, say once, to “keep” the path, that doesn’t count. You need to prove consistent use.

The problem for Virgin is that it isn’t an automatic procedure where NR issues a Failure to Use notice and the TOC loses the right. As been said above, there is no such thing as a temporary withdrawal, that is NR “unofficially” trying to make its timetable planning easier. It carries no weight whatsoever in the contract. It’s a permanent withdrawal if Failure to Use takes effect.

However, what there is in Part J are exemptions for Failure to Use where it is attributable to non-economic reasons outside of that operators control and is temporary in nature. COVID, its aftermath and the IR problems and their aftermath have all been used and accepted as valid reasons for not using a right. The level of control the DfT have exercised over TOC decisions is also very helpful to DfT operators here. Obviously, Virgin will be challenging this.

The ORR has yet to opine on the economic case that Virgin will have presented. Even if there was space made available for the Virgin trains, they may not meet the economic case, total abstraction from Avanti on certain key flows being the one that is likely to trip them up.

Normally claims like this from existing operators would normally go through ADC (as an ADA) but as Virgin isn’t an access beneficiary, this one has to go straight to the ORR.
 

Snow1964

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@Clarence Yard has phrased it much better than I did, when I tried to put it into layman's terms.

The test is basically can the temporary covid economic exemption which stops the hand back of unused usage rights continue to apply. I phrased it as drifting towards a backstop date, but in reality there is no specific date, but clearly if most of the economic effects have faded out over time, then continuing to assume covid effects still apply is very weak.

Sounds like Virgin are considering testing this (can the lack of using, still continue to apply) in Court if regulator doesn't determine it soon.
 

Helvellyn

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I mean if Virgin did win a slot on this legal argument are there other operators who might be nervous of such challenges? SWR for example have a much reduced timetable since before COVID but stock/driver shortages means they couldn't just reintroduce everything overnight.
 

Class15

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I mean if Virgin did win a slot on this legal argument are there other operators who might be nervous of such challenges? SWR for example have a much reduced timetable since before COVID but stock/driver shortages means they couldn't just reintroduce everything overnight.
SWR already have challenge… This new London-Marchwood service…
 
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The following letter dated 19 March 2025 from Network Rail has appeared on the Office of Rail and Road website. It includes the following statements relevant to the current applications for access to the railway so I assume the Office of Rail and Road will be able to make decisions soon on applications to run open access passenger train services which are currently being considered including the application from Virgin.
27. Network Rail has also made formal declarations of Congested Infrastructure on 14 March 2025 for the following lines of route:
• Between Huntingdon North Jn and New England North Jn (Peterborough)
• Between Northallerton Longlands Jn and Newcastle King Edward Bridge South via the ECML
• Between Doncaster Marshgate Jn and Leeds Copley Hill West Jn.
28. We do not want to take longer than is needed to provide our representations on any application and we look for opportunities to expedite our assessment of any applications. The following packages of representations are expected to be with you in the next few weeks:
Week commencing 24th March
· Final representations on an initial tranche of ten individual applications including eight relating to the East Coast Mainline.
· One additional final representation on a national passenger application
Week commencing 7th April
· Final representations on a further group (4) of applications from Eastern Region.
· Final representations (2) from Southern Region
· Initial group of Freight Representations (7) which will all be final representations or able to be used as final representations (e.g., in some cases if quantum can be used as well as 1 hour firm right windows)
Week commencing 14th April
· Final Representations (2) from Scotland
· Freight representations (see below).
Week Commencing 21st April
· General representations on power modelling from North West & Central Region
· Final or further representations on a group of applications (6) relating to the West Coast Mainline.
· Freight representations (see below).
Weeks Commencing 28th April
· Freight representations (23) on remaining applications not submitted w/c 7/4/25, will be submitted across April – (see previous weeks) - either as Final or Further Representations depending on capacity assessments. We intend to have all of them completed by the end of April. Where further representations are made, Final representations would be made as soon as possible and any of those remaining can be expected to be made after the end of Phase 5 of our High-Level Plan (that ends 13th June 2025).
29. This leave us with around a dozen passenger representations (some of which are alternates by the same operator) by the end of Phase 5 of our High-Level plan that runs until 13 June 2025. However, we anticipate being able to provide final representations on number of these individual applications from across the network during April and May – reducing that number further.
 
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The Middle

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We do not want to take longer than is needed to provide our representations on any application

Laughed heartily at this considering many of these applications were now made almost a year ago.
 

The Ham

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I can assure you that the poor b*ggers who have had to deal with all these applications have not been laughing.

Whilst I don't follow closely the number of open access applications there did appear to be a lot at the moment, more typically I feel there's a few a year at most, there appears to have been quite a lot recently compared to that.

If that is the case, then having a lot of applications to deal with could mean it's complicated to provide an answer and would likely mean a significant amount of extra work to deal with.
 

Snow1964

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I can assure you that the poor b*ggers who have had to deal with all these applications have not been laughing.
I guess the volume varies over time, but at the quieter times opposite applies, still part of the job for which they get paid, and still getting paid when there are negligible applications must be an opposing upside.

Maybe the old style managers who would roll up their sleeves and get stuck in to help out when busy, and get the work done quickly are thin on ground now which is real problem.
 
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