Branson Calls on Government to Re-Let East Coast Franchise as Soon as Possible

LONDON - Commenting on the Government’s decision to take the East Coast franchise in to temporary public ownership, Sir Richard Branson, founder of Virgin Group said: “Should the East Coast franchise go into default, the Government has made the right decision to take it back. If you bid for a car, a painting or a house and can’t pay for it, it always reverts back to the under-bidder or the owner. A train franchise should be no different. I would encourage the Government to re-let this franchise as soon as is possible; but also use it as an opportunity to look again at the franchise system and ensure some level of innovation, financial robustness and quality is built in. We have been the under bidder on three different occasions, spent GBP15 million in the process and lost to people who have put in unrealistic bids. This cannot be right. On a more personal note, I am sad to see Richard Bowker leave the UK Rail industry. He has shown dedication and drive and has been a great servant to the rail sector during his career. We wish him luck in his new role.”

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Virgin Trains is the brand name of Virgin Rail Group. We have operated the West Coast passenger train franchise since 1997; the current franchise runs to March 2012.

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Source: Virgin Trains

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