Stagecoach hopes to retain East Coast rail after 2020 despite bailout
Labour calls for transport group to be banned from bidding again, warning of an impending crisis in railway industry
Stagecoach has said it hopes to continue running the East Coast rail route after 2020, when it will exit its current contract three years early with a potential £2bn shortfall for the taxpayer.
Labour said the firm should be barred from bidding again, amid warnings that the effective bailout on its Virgin Trains East Coast franchise could cause a crisis across the rail industry.
RAIL FRANCHISING CRISIS: First Group losing big money on Trans-Pennine Express, having overbid for it, and I’m told its lawyers looking ‘very carefully’ at Chris Grayling’s bail-out of Stagecoach/Virgin on East Coast last week. Cost to HMG of bailout could run into the billions!
Source: Guardian Transport