East Coast rail franchise to be terminated three years early
Ending Virgin Trains East Coast’s contract could cost Treasury hundreds of millions
The East Coast rail franchise will be terminated three years early, avoiding the embarrassment of another private firm handing back the keys to the government but potentially forfeiting hundreds of millions in premiums due to the Treasury.
Under a rail strategy announced by the transport secretary, Chris Grayling, a new partnership model will replace the franchise contract of Virgin Trains East Coast (Vtec).
2/ DfT has serious questions to answer about the fiasco on East Coast & why they are (in effect) bailing out Stagecoach/Virgin with taxpayer money. National Express asked me for a bail out on East Coast in 2009. I refused & nationalised the franchise rather than do so.
Source: Guardian Transport