How will the new franchise agreements for UK railways affect business travel? Dave Richardson investigates
THE DECISION TO AWARD THE prestige West Coast rail franchise to First Group from December has proved highly controversial, with incumbent Virgin Trains and rail union RMT warning that it will lead to reduced onboard services and higher fares. Certainly, it has put the spotlight on the whole franchising system, which Sir Richard Branson believes is so flawed that it is “extremely unlikely” Virgin will bid for a franchise ever again. First Group is believed to have
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bid 20 per cent more than Virgin to retain the franchise. But there will have to be cuts, including probable abolition of the onboard shop in favour of a trolley service. Whether Virgin’s renowned service of free hot meals and drinks to first class passengers will be retained is also highly questionable, but the good news is that there will be a 15 per cent reduction in standard class anytime fares within two years and new services to Blackpool (2013) and Telford, Shrewsbury and Bolton (2016). It would have seemed right and just for Virgin to have its franchise renewed, as it has increased passengers from 13.5 million a year when the route was sold off in 1997 to 30 million last year. It has also come top among long-distance operators in quarterly satisfaction surveys by watchdog Passenger Focus. Sir Richard fears a repeat of what
happened on the East Coast route with two franchise holders – GNER and National Express – pulling out because they could not afford the premium payments to the government. That route is currently