London-Glasgow Train Service May Be Nationalized, FT Reports
Britain’s profitable rail service between London and Glasgow may be taken back into public ownership after the current franchise, held by Virgin Trains, runs out in May next year, the Financial Times reported, citing an unidentified person close to the matter.
An application by Virgin for a two-year extension of its West Coast main line franchise was rejected last year and the government has postponed the start of a new contract until January 2013, though Virgin may have its contract extended for the intervening nine months, the newspaper said.
Trains on the East Coast main line between London and Edinburgh are run by Directly Operated Railways, a state company, and it would be easy for that company to operate the West Coast line as well, the FT cited its informant as saying.
The results of a review of the franchising system are due to be announced by Transport Secretary Philip Hammond on May 19, the newspaper added.
Virgin Trains declined to comment, the FT said.
To contact the reporter on this story: Alan Purkiss in London on apurkiss@bloomberg.net.
To contact the editor responsible for this story: Colin Keatinge at ckeatinge@bloomberg.net.
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