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-   -   [Update] FirstGroup WCML franchise Award revoked (https://www.cableforum.uk/board/showthread.php?t=33689246)

Maggy 15-08-2012 09:15

[Update] FirstGroup WCML franchise Award revoked
 
http://www.bbc.co.uk/news/business-19264614

Quote:

Virgin Rail has lost its bid to continue running the West Coast Mainline and will be replaced by the UK's largest rail operator, FirstGroup.
Quote:

First West Coast says it will return £5.5bn at net present value to the government over the franchise term.
That is believed to have been much higher than the amount offered by Virgin Rail, which is 49%-owned by another transport company, Stagecoach.
In a statement, Stagecoach said the reason it had failed to secure the new franchise was because FirstGroup had contracted to pay "significantly higher premium payments" to the Department for Transport.
Quote:

But there are concerns that First Group may have bid too much for the franchise.
"There have been many examples… where there have been very aggressive bids which the government has awarded and then quite soon afterwards, the people have handed back the keys and walked away from the contract without any real penalty," said Stephen Glaister, Professor of Transport and Infrastructure at Imperial College London.
Let's hope that FirstGroup can deliver.Rail transport certainly needs improvement.

Damien 15-08-2012 09:22

Re: Virgin Trains loses West Coast Mainline franchise
 
Faster, more numerous, increased capacity and £1 billion more with tickets costing 15% less? All from First Group who are one of the more frequently complained about providers....

Not holding my breath.

denphone 15-08-2012 09:26

Re: Virgin Trains loses West Coast Mainline franchise
 
Quote:

Originally Posted by Maggy J (Post 35463326)
http://www.bbc.co.uk/news/business-19264614







Let's hope that FirstGroup can deliver.Rail transport certainly needs improvement.

Don't expect that Maggy as we have the FirstGroup running the franchise down here and to put it mildly they are a load of rubbish.:td:

Maggy 15-08-2012 09:27

Re: Virgin Trains loses West Coast Mainline franchise
 
Quote:

Originally Posted by Damien (Post 35463328)
Faster, more numerous, increased capacity and £1 billion more with tickets costing 15% less? All from First Group who are one of the more frequently complained about providers....

Not holding my breath.

I was trying not to prejudge..but then I don't use the West Coast train line so I cannot say how bad or good it is with Virgin.;)

Damien 15-08-2012 09:37

Re: Virgin Trains loses West Coast Mainline franchise
 
Quote:

Originally Posted by Maggy J (Post 35463330)
I was trying not to prejudge..but then I don't use the West Coast train line so I cannot say how bad or good it is with Virgin.;)

It's alright. I've done it a two or three times from Euston to Manchester (and I think it's the same line to Birmingham which I have also used). As I was saying in the other thread it isn't too expensive if you book in advance. The trains are nice and were always on time albeit it's hard to judge it's dependability after three trips. They were one of the few operators to actually invest in better trains.

I don't buy that's it's possible to bid an extra £1 billion, cut fares by 15%, as well as increase the capacity and frequency of the trains. How inefficient were Virgin being if this is possible? You would think the Government looked the business plan and finances and concluded it was possible but this wouldn't be the first time a franchise operator failed to deliver on their promises.

Hopefully the £1 billion extra is being used for National Rail improvements.

BenMcr 15-08-2012 10:15

Re: Virgin Trains loses West Coast Mainline franchise
 
Unfortunately I have feeling they'll do what Arriva did to the CrossCountry trains - ditch the shop for more seats and have a trolley. It's bad enough on the smaller trains the CrossCountry routes have - but some of the West Coast trains are now 11 cars long.

It'll be interesting to see whether they will get away with getting rid of the First Class kitchen too

mertle 15-08-2012 10:53

Re: Virgin Trains loses West Coast Mainline franchise
 
branson called it insanity

http://www.guardian.co.uk/business/2...ainline-insane

from his blog

Quote:

"We also did not want to risk letting everybody down with almost certain bankruptcy at some time during the franchise as happened to GNER and National Express who overbid on the east coast mainline. Sadly the government has chosen to take that risk with FirstGroup and we only hope they will continue to drive dramatic improvements on this line for years to come without letting everybody down."Insanity is doing the same thing over and over again and expecting different results. When will the Department for Transport learn?"
Would not be shocked to see another national coaches fiasco around corner. Seems the general concensus is they overstretched to get the franchise.

http://www.fool.co.uk/news/investing...oofolrf0010002

what I find strange why there shares bumped 20% over the month leading up to the bid anouncement when they sealed unknown. Sounds strange since bid anounced win there shares fallen 4% likely Probably at the costs bid maybe these ambitious growth forcasts.

Quote:

FirstGroup's revenue assumptions do seem rather heroic, as they are expecting a 10.4% compound annual growth rate in revenue, compared to 8.5% projected by Virgin Trains. The franchise is already generating annual revenues of around £900m.
Some of the key improvements promised are 11 new six-car trains for the Birmingham to Scotland route, a reduced 15-minute journey time between Glasgow and London, new direct services from London to Blackpool, Telford, Shrewsbury and Bolton, plus a 15% reduction in Standard Anytime fares.

As for side note dont know how this thing works but what happens to virgin investment. Does first pay them back or they lose out financially now they lost franchise.

Another why are governemt contracts in other sectors not run the same way. Seems strange why we pay companies like ATosers, g4sawol when train companies have to bid for contracts pay government.

MovedGoalPosts 15-08-2012 10:59

Re: Virgin Trains loses West Coast Mainline franchise
 
I'm an infrequent rail traveller, but have in the last few years experienced main line services run on the East Coast Line, West Coast Line, and most recently towards Cardiff. By far the best services were those by Virgin Trains.

Virgin Trains, with it's Pendolino stock is at the forefront of mainline services. Of course they have been able to take advantage of the upgrades and investment in the west coast line to introduce that stock. I'd also suspect that there were incentives in the franchise to develop the Pendolino trains.

It would seem unfair that Virgin Trains do a lot of the groundwork in uplifting services, only to loose out to another operator, who will no doubt inherit the modern stock and reap the rewards for potentially less development effort.

It should be noted that many of the new franchise services improvements to come, are also only possible because of already announced improvements to some of the rail infrastructure, such as electrification of the line to Blackpool from Preston.

denphone 15-08-2012 11:03

Re: Virgin Trains loses West Coast Mainline franchise
 
Quote:

Originally Posted by heero_yuy (Post 35463341)
That's what my mother reckoned when she travelled to and fro to Penzance from here in Worthing. She said the Virgin Trains were much cleaner and nicer than the First Western ones.

Paying more money to the government to secure the franchise robs it of investment.

Yes l can only go by my experiences as yes Virgin Trains when we had them down here were far superior in most aspects to anything First has ever done and in my humble opinion we will be the worse if we lose the Virgin group from our railways but that is likely to be the case it seems as they have no franchises left now.

Arthurgray50@blu 15-08-2012 11:23

Re: Virgin Trains loses West Coast Mainline franchise
 
Sadly, l find this ending up in court as Sir Richard has already said that he will go to court over this decision.

What is the whole point of a company getting everything ready for the future and it gets taken over by a company that is well liked by the government.

What the point of changing something when its improving to go to a company that will rip it to pieces.

I can see a lot of trouble over this with strikes - yes this forum doesn't like the word strikes, but this has been brewing for a few weeks, when it was in the air.

danielf 15-08-2012 11:23

Re: Virgin Trains loses West Coast Mainline franchise
 
Quote:

Originally Posted by Rob (Post 35463364)

Virgin Trains, with it's Pendolino stock is at the forefront of mainline services. Of course they have been able to take advantage of the upgrades and investment in the west coast line to introduce that stock. I'd also suspect that there were incentives in the franchise to develop the Pendolino trains.

I spent 4 hours round trip on a Pendolino last week, and found the seats very uncomfortable. I had a window seat, and I just couldn't figure out where to keep my window-side arm. The seat itself was quite narrow (and I'm not a big lad), so wasn't comfortable with a arm by my side, but couldn't quite put it on the ledge either. I just spent 2 hours each way trying to get comfortable, but didn't quite manage.

Pierre 15-08-2012 12:02

Re: Virgin Trains loses West Coast Mainline franchise
 
Quote:

Originally Posted by Arthurgray50@blu (Post 35463368)
Sadly, l find this ending up in court as Sir Richard has already said that he will go to court over this decision.

I don't think he will. Even if he did the decision would not be overturned.


Quote:

What is the whole point of a company getting everything ready for the future and it gets taken over by a company that is well liked by the government.

What the point of changing something when its improving to go to a company that will rip it to pieces.

I can see a lot of trouble over this with strikes - yes this forum doesn't like the word strikes, but this has been brewing for a few weeks, when it was in the air.
We as I, or you, have not seen the content of both bids any comment would be purely speculative.

Stephen 15-08-2012 12:22

Re: Virgin Trains loses West Coast Mainline franchise
 
First Group are awful, they already run most of the UK Bus and train services and are expensive and don't deliever a good service at all.

I have use the glagow to London Virgin train service and even the 1st Class service and have never had any issues and will be gutted once they stop.

mertle 15-08-2012 12:35

Re: Virgin Trains loses West Coast Mainline franchise
 
Bob Crow threatens first already.

http://www.bbc.co.uk/news/business-19265985

Actually see where he coming from.

I did not like the 2 clowns in studio I thought beeb was impartial but his valid concerns going by first track record was belittled. It was almost if they was spokesperson for first let first defend themselves not 2 beeb presenters.

Look way she nods in agreement when the bloke reads first plans is she shareholder first by any chance.

I dont know who the cow and the bloke was but surely he had valid concerns.

I know bob crow bit nutter but in this case he has valid reasons about future where the train service going in the area.

Hugh 15-08-2012 13:20

Re: Virgin Trains loses West Coast Mainline franchise
 
Nodding is encouraging them to continue, not agreeing - standard interview technique.

Nice attempted slur on her impartiality with the "shareholder" comment.

Tezcatlipoca 15-08-2012 13:30

Re: Virgin Trains loses West Coast Mainline franchise
 
I used Virgin Trains last year for a trip to Blackpool. It was the best train journey I'd ever had, far superior to journeys via trains from other companies such as First...

Julian 15-08-2012 13:41

Re: Virgin Trains loses West Coast Mainline franchise
 
And all for the idiots in government to coin a few more quid. :rolleyes:

Completely the wrong decision. As previously stated first are a set of numpties.

My family and I have used Virgin quite frequently and been very pleased with their service.

Hopefully first will fall flat on their faces. Then Virgin can come back.

Arthurgray50@blu 15-08-2012 14:08

Re: Virgin Trains loses West Coast Mainline franchise
 
www.themirror.co.uk Todays edition, It may be a Labour paper, but it has clearly stated on the front page.

If you read that then you will clearly see what Bob Crow is talking about, The new company can invest, but in what everything is already in the pipeline, Bob Crow is defending his members, all new companies come in and streamline and get rid of any dead wood.

The catering on the trains is to be cut, l can remember last time l went to Glasgo, there was no buffet car due to a shortage of staff, and this precisely what will happen now, cut back in staff etc.

What we need is a train service that you can rely on, stations that are well protected when the trains are running.

I think from what l have heard is that the new company will come in and just carry as usual but will make severe cutbacks to make more money and still increase prices.

Maggy 15-08-2012 14:40

Re: Virgin Trains loses West Coast Mainline franchise
 
Quote:

Originally Posted by Hugh (Post 35463438)
Nodding is encouraging them to continue, not agreeing - standard interview technique.

Nice attempted slur on her impartiality with the "shareholder" comment.

The interviewer on Sky was a lot rougher and tried very hard to find out what the overbid sum was..no nodding from him at all.the interviewee of course refused to be drawn on the matter.

cookie_365 15-08-2012 21:18

Re: Virgin Trains loses West Coast Mainline franchise
 
To be fair to WorstGroup - their trains from Paddy to Bristol and Cardiff are fine.

But that's all the fairness up for grabs. Every single other franchise they run that I've had the misfortune to have to use is dreadful.

Vieil Homme 15-08-2012 23:09

Re: Virgin Trains loses West Coast Mainline franchise
 
Have the government not heard about all your eggs in one basket? How they can accept an offer from a company that are in debt by 1.5billion. I hope the Government sacks the people who accepted the offer when it fails leaving us the tax payers to pickup the debts.

richard1960 16-08-2012 09:34

Re: Virgin Trains loses West Coast Mainline franchise
 
Quote:

Originally Posted by Julian (Post 35463453)
And all for the idiots in government to coin a few more quid. :rolleyes:

Completely the wrong decision. As previously stated first are a set of numpties.

My family and I have used Virgin quite frequently and been very pleased with their service.

Hopefully first will fall flat on their faces. Then Virgin can come back.

I doubt very much Virgin will be back Richard Branson was on the news last night, saying he doubted he would bid for a franchise again such was his anger at the bidding process.

It seems a shame when you have a company committed to excellence the government throws the baby out with the bathwater,National Express could not deliver a while back and the government got lumbered,and the first group have to have a year on year 10% increase in passenger numbers to make it pay.

Serves the government right if it all goes pear shape and gets thrown back in their face.

BenMcr 16-08-2012 09:47

Re: Virgin Trains loses West Coast Mainline franchise
 
Quote:

Originally Posted by richard1960 (Post 35463684)
Serves the government right if it all goes pear shape and gets thrown back in their face.

Except, there is a possibility it'll be a different government that'll have to deal with the mess.

Based on Labour's current non-commitment to changing how the system works, I'm not holding out much hope, but as per usual those currently involved may not care very much.

richard1960 16-08-2012 09:55

Re: Virgin Trains loses West Coast Mainline franchise
 
Quote:

Originally Posted by BenMcr (Post 35463693)
Except, there is a possibility it'll be a different government that'll have to deal with the mess.

Based on Labour's current non-commitment to changing how the system works, I'm not holding out much hope, but as per usual those currently involved may not care very much.

Sadly Ben i make you 100% corrrect.

Maggy 16-08-2012 09:57

Re: Virgin Trains loses West Coast Mainline franchise
 
Successive governments have done nothing to sort out public transport because they do not use it..and when they do they go first class.:(

Chris 16-08-2012 09:59

Re: Virgin Trains loses West Coast Mainline franchise
 
Quote:

Originally Posted by mertle (Post 35463403)
Bob Crow threatens first already.

http://www.bbc.co.uk/news/business-19265985

Actually see where he coming from.

I did not like the 2 clowns in studio I thought beeb was impartial but his valid concerns going by first track record was belittled. It was almost if they was spokesperson for first let first defend themselves not 2 beeb presenters.

Look way she nods in agreement when the bloke reads first plans is she shareholder first by any chance.

I dont know who the cow and the bloke was but surely he had valid concerns.

I know bob crow bit nutter but in this case he has valid reasons about future where the train service going in the area.

I hate the DfT right now. They have put me in a position of agreeing with Bob Crow.

Virgin Trains IMO deserves a lot of credit for what it has achieved on the WCML since privatisation. Branson took a huge gamble, taking it on when the rolling stock and infrastructure was all in such an awful state. As a regular if infrequent user over the past 15 years I can say that the service is as good now as it was awful back then. Virgin took all the flak as it frequently failed to deliver a service that arrived at anything like the advertised time, stuck with it, invested a pile in the tilting trains BR failed to bring to the WCML 20 years earlier and, in conjunction with improvements by Network Rail, now operates a clean, efficient and very fast service that gets you there, on time, the vast majority of the time (which is a mighty achievement on the West Coast, which is not 'a' line, so much as a complex, tangled network of lines criss-crossing and branching off each other).

Virgin Trains is a proven operator on the WCML and the DfT has taken one hell of a risk in handing the franchise to a company that has done demonstrably less well in arguably far less challenging circumstances. I am not optimistic.

th'engineer 17-08-2012 15:11

West Coast e petition
 
if anyone travels on virgin trains

you will appreciate the service

please sign to get gov to reconsider

https://submissions.epetitions.direc...etitions/37180

dave6x 23-08-2012 23:24

Re: West Coast e petition
 
Quote:

Originally Posted by th'engineer (Post 35464181)
if anyone travels on virgin trains

you will appreciate the service

please sign to get gov to reconsider

https://submissions.epetitions.direc...etitions/37180

The petition's only been going for a week and at the time of writing this it already has over 92,000 signatures, should make over 100,000 tomorrow! Be interesting to see what happens next!

Chris 24-08-2012 08:04

Re: Virgin Trains loses West Coast Mainline franchise
 
If it gets to 100,000 then a Parliamentary committee has to discuss whether to schedule a full debate in the Commons.

---------- Post added at 08:04 ---------- Previous post was at 08:00 ----------

Signed.

Damien 24-08-2012 08:58

Re: Virgin Trains loses West Coast Mainline franchise
 
A letter has been written by someone on some select committee to the minister for transport asking her to delay the signing of the contract which is currently set for the 28th of August. This petition needs to reach 100,000 before then.

Hugh 24-08-2012 09:24

Re: Virgin Trains loses West Coast Mainline franchise
 
96,013 at this time.

Come on, everyone - let's get it to 100k.

dave6x 24-08-2012 10:36

Re: Virgin Trains loses West Coast Mainline franchise
 
Quote:

Originally Posted by Damien (Post 35466902)
A letter has been written by someone on some select committee to the minister for transport asking her to delay the signing of the contract which is currently set for the 28th of August. This petition needs to reach 100,000 before then.

Hopefully, the way it's been going, the 100,000 target will be reached and exceeded by the end of today!

Is this going to trigger yet another U-turn for Clegg-Cameron? I hope so, but I'm not holding my breath!

---------- Post added at 10:36 ---------- Previous post was at 09:46 ----------


Link to Request to Delay Signing

Chris 24-08-2012 10:38

Re: Virgin Trains loses West Coast Mainline franchise
 
97,289. No problem getting 100k at this rate.

Sirius 24-08-2012 11:21

Re: Virgin Trains loses West Coast Mainline franchise
 
Quote:

Originally Posted by Chris (Post 35466925)
97,289. No problem getting 100k at this rate.

I don't think it will do anything however, i feel money will have passed from one to another to ensure this went in favour of First Group :mad:. any right minded person can see who would be the best company to run the West coast Mainline

Mick Fisher 24-08-2012 12:05

Re: Virgin Trains loses West Coast Mainline franchise
 
Quote:

Originally Posted by Sirius (Post 35466936)
I don't think it will do anything however, i feel money will have passed from one to another to ensure this went in favour of First Group :mad:. any right minded person can see who would be the best company to run the West coast Mainline

Sounds about right to me. :Yes:

dave6x 24-08-2012 13:13

Re: Virgin Trains loses West Coast Mainline franchise
 
Brilliant!!! Over 100,000 signatures!!!! :)

Sirius 24-08-2012 15:24

Re: Virgin Trains loses West Coast Mainline franchise
 
Quote:

Originally Posted by dave6x (Post 35466983)
Brilliant!!! Over 100,000 signatures!!!! :)

Excellent, now watch the conservatives ignore it.

Pierre 25-08-2012 11:11

Re: Virgin Trains loses West Coast Mainline franchise
 
The were messages sent out to all the employees of other Virgin group companies advising them of the e-petition.

Damien 25-08-2012 18:06

Re: Virgin Trains loses West Coast Mainline franchise
 
Quote:

Originally Posted by Pierre (Post 35467262)
The were messages sent out to all the employees of other Virgin group companies advising them of the e-petition.

Good good :D

Maggy 25-08-2012 18:38

Re: Virgin Trains loses West Coast Mainline franchise
 
Not that it will do any good..As Parliament is not sitting there will be no debate before the contracts are signed later this week.

When they get back it will already be a done deal.

Damien 25-08-2012 18:44

Re: Virgin Trains loses West Coast Mainline franchise
 
Quote:

Originally Posted by Maggy J (Post 35467418)
Not that it will do any good..As Parliament is not sitting there will be no debate before the contracts are signed later this week.

When they get back it will already be a done deal.

Well hopefully it may help succeed in getting the decision to be reviewed and the contract signing postponed.

Maggy 25-08-2012 19:02

Re: Virgin Trains loses West Coast Mainline franchise
 
Quote:

Originally Posted by Damien (Post 35467419)
Well hopefully it may help succeed in getting the decision to be reviewed and the contract signing postponed.

The BBC reported that was unlikely.:erm:

MovedGoalPosts 25-08-2012 19:15

Re: Virgin Trains loses West Coast Mainline franchise
 
Quote:

Originally Posted by dave6x (Post 35466913)
Is this going to trigger yet another U-turn for Clegg-Cameron? I hope so, but I'm not holding my breath!

I'd question whether they re even involved or whether this will just be a decision taken by faceless, unaccountable, civil servants.

Telly_ 25-08-2012 19:34

Re: Virgin Trains loses West Coast Mainline franchise
 
Quote:

Originally Posted by Arthurgray50@blu (Post 35463463)
www.themirror.co.uk Todays edition, It may be a Labour paper, but it has clearly stated on the front page.

If you read that then you will clearly see what Bob Crow is talking about, The new company can invest, but in what everything is already in the pipeline, Bob Crow is defending his members, all new companies come in and streamline and get rid of any dead wood.

The catering on the trains is to be cut, l can remember last time l went to Glasgo, there was no buffet car due to a shortage of staff, and this precisely what will happen now, cut back in staff etc.

What we need is a train service that you can rely on, stations that are well protected when the trains are running.

I think from what l have heard is that the new company will come in and just carry as usual but will make severe cutbacks to make more money and still increase prices.

Any chance that just once you could link to the actual story?

Sirius 25-08-2012 20:01

Re: Virgin Trains loses West Coast Mainline franchise
 
Quote:

Originally Posted by Telly_ (Post 35467426)
Any chance that just once you could link to the actual story?

We have ALL been asking that same question of Arthur for years :D

Hugh 25-08-2012 21:29

Re: Virgin Trains loses West Coast Mainline franchise
 
Unfortunately, Arthur doesn't do links to the actual story.......

MalteseFalcon 25-08-2012 21:44

Re: Virgin Trains loses West Coast Mainline franchise
 
Doing some digging re:the story Arthur mentioned in that quote on previous page. Found the following couple of stories:

http://www.mirror.co.uk/news/uk-news...t-main-1263032

http://www.mirror.co.uk/money/person...-ahead-1260016

These might be the ones he was talking about.

Sirius 28-08-2012 10:07

Re: Virgin Trains loses West Coast Mainline franchise
 
So the Government are going to ignore the petition site and push ahead with the signing, why have a set target to reach on the petition site if the Government are just going to ignore it anyway.

http://www.bbc.co.uk/news/uk-politics-19395621

Damien 28-08-2012 10:15

Re: Virgin Trains loses West Coast Mainline franchise
 
Oh well. If First Group suddenly don't manage to provide their promises, if they start scaling back their ambitions in the next few months, prices don't go down, trains are quite as dependable or the extra £1 billion doesn't arrive then we'll start a new petition demanding Justine Greening's resignation.

Quote:

FirstGroup has promised to cut standard fares by 15%, have more frequent trains and more seats, and introduce better wi-fi and food.

The firm said it would introduce 11 new 125mph six-car electric trains on the Birmingham to Glasgow route and provide more direct services between destinations.
If somehow they can't provide better trains, a more reliable service and cheaper prices all whilst giving an extra £1 billion then we know who to hold to account and they can't claim they weren't warned.

Sirius 28-08-2012 10:19

Re: Virgin Trains loses West Coast Mainline franchise
 
Quote:

Originally Posted by Damien (Post 35468078)
Oh well. If First Group suddenly don't manage to provide their promises, if they start scaling back their ambitions in the next few months, prices don't go down, trains are quite as dependable or the extra £1 billion doesn't arrive then we'll start a new petition demanding Justine Greening's resignation.

:tu:

But they will just ignore that as well :mad:

Maggy 28-08-2012 11:46

Re: Virgin Trains loses West Coast Mainline franchise
 
Quote:

Originally Posted by Sirius (Post 35468074)
So the Government are going to ignore the petition site and push ahead with the signing, why have a set target to reach on the petition site if the Government are just going to ignore it anyway.

http://www.bbc.co.uk/news/uk-politics-19395621

Why announce consultation sessions on every government proposal and then ignore those that consult..as in the BskyB fiasco.

Because you can claim you were listening without really listening.;)

beeman 28-08-2012 12:07

Re: Virgin Trains loses West Coast Mainline franchise
 
Quote:

The company, under the name First West Coast Limited,
For me this is the key bit. They always sign the contracts with a limited subsiduary, meaning that if things dont go well first group can just put the subsiduary into adminstration and walk away. Just like ITV sport did with its football rights.
IMO all government contracts should bee with the main parent company not a LTD subsiduary

Sirius 28-08-2012 15:33

Re: Virgin Trains loses West Coast Mainline franchise
 
Its going to court

http://www.bbc.co.uk/news/uk-19402133

Quote:

Virgin Trains has said it has started court proceedings over the government's decision to award a new franchise to transport company FirstGroup.

Virgin had run the franchise since 1997, but lost to FirstGroup, prompting it to demand a review of the process.

Labour had also urged the government to delay the signing of the contract so that MPs could examine it.

But earlier Transport Secretary Justine Greening said there would be no delay in signing the FirstGroup deal.

Damien 28-08-2012 15:49

Re: Virgin Trains loses West Coast Mainline franchise
 
Hard to see what case they could make? I want them to get the franchise but it seems more a case of a bad decision rather than an illegal one.

Mick 28-08-2012 16:46

Re: Virgin Trains loses West Coast Mainline franchise
 
I've used both Virgin Trains and FirstGroup and personally, I wouldn't let FirstGroup run my own Train set.

denphone 28-08-2012 17:02

Re: Virgin Trains loses West Coast Mainline franchise
 
Quote:

Originally Posted by Mick (Post 35468163)
I've used both Virgin Trains and FirstGroup and personally, I wouldn't let FirstGroup run my own Train set.

Seconded as l have used both throughout the years and the FirstGroup service has been shocking at times while when we had the Virgin franchise down here our family was always very impressed with their service and then the franchise came up for renewal and they made exactly the same mistake as what has happened to the West Coast franchise and handed it to someone else.

Sirius 28-08-2012 17:36

Re: Virgin Trains loses West Coast Mainline franchise
 
Quote:

Originally Posted by Mick (Post 35468163)
I've used both Virgin Trains and FirstGroup and personally, I wouldn't let FirstGroup run my own Train set.

Quote:

Originally Posted by denphone (Post 35468165)
Seconded as l have used both throughout the years and the FirstGroup service has been shocking at times while when we had the Virgin franchise down here our family was always very impressed with their service and then the franchise came up for renewal and they made exactly the same mistake as what has happened to the West Coast franchise and handed it to someone else.


I used First Group trains to attend a meeting and the staff reminded me of the bad old days of British rail.

Pierre 29-08-2012 09:54

Re: Virgin Trains loses West Coast Mainline franchise
 
It all smacks of desparation and sour grapes.

Virgin did not have a right to operate the service on the West Coast Line.

They entered into a tender process knowing they were up against others.

The process lasted 15months, plenty of time for them to get any and all the clarifications needed on how the bids would be assessed and weighted.

They were outbid. They lost, suck it up, stop crying and get on with it.

The railways are privatised, it's business, not altruism.

Now if First make a balls of it, then so be it. I see it happen in construction all the time.

Companies effectively buy work, knowing they'll make a loss on the bid as it stands, and hope they can make it profitable through the life of the project on cost savings, and claims.

Maggy 03-09-2012 17:25

Re: Virgin Trains loses West Coast Mainline franchise(Update)
 
http://www.bbc.co.uk/news/uk-19467510

Quote:

The deal to hand the West Coast Main Line rail franchise to First Group is to be delayed following a legal challenge by current operator Virgin.
Virgin launched the challenge last week after losing its attempt to continue operating the route.
Ministers were expected to sign the deal with First Group several days ago.
But they have confirmed due to the legal challenge the contract has not been signed and "the competition remains live".
Quote:

And more than 165,000 people have signed an online petition calling for the decision to be reconsidered.
A bit of common sense..finally.

denphone 03-09-2012 17:33

Re: Virgin Trains loses West Coast Mainline franchise (Update)
 
Excellent news.

Sirius 03-09-2012 18:48

Re: Virgin Trains loses West Coast Mainline franchise (Update)
 
I would say this Government has grown a pair but they have not, in the end they had no legal choice other than to agree a review.

Mick 03-10-2012 04:03

Re: Virgin Trains loses West Coast Mainline franchise (Update)
 
LOL Nice One - Good news for a change !!!

FirstGroup's award for running the West Coast Main Line from 9th December has been Revoked.

Quote:

Originally Posted by Sky News
The decision to award the West Coast Main Line franchise to FirstGroup has been cancelled due to flaws in the way the process was conducted.

The decision was announced by Transport Secretary Patrick McLoughlin.

It means the Department for Transport (DfT) will no longer be awarding a franchise contract to run the West Coast service when the current franchise expires in December.

FirstGroup was due to take over the running of the London to Scotland line after being awarded the contract by the DfT in August, but Virgin Rail, which currently runs the service, launched a High Court challenge against the decision.

The DfT said it would be no longer contesting the judicial review sought by Sir Richard Branson's company.

Mr McLoughlin has also ordered two independent reviews into the competition process.

The flaws uncovered by the DfT relate to the way the procurement was conducted by department officials, it said.

It said the flaws stemmed from the way the level of risk in the bids was evaluated.

This makes Sir Richard Branson, a very happy man:-

Quote:

Originally Posted by Sir Richard Branson
"I took a call this evening in New York from the UK Secretary of State for Transport, Patrick McLoughlin, telling me that he will no longer be awarding the West Coast Main Line franchise to FirstGroup.

From the moment we found out that FirstGroup had been made the preferred bidder with a completely unrealistic bid, we questioned the way the offers had been assessed, and asked Government to review and explain how it came to its decision.

We were convinced the process was flawed but despite our best efforts we were met with silence by the Department for Transport. We also asked for government to appoint an independent advisor to look at the situation, which was turned down. Reluctantly we were forced to seek a judicial review. Tomorrow the DfT were meant to have given their evidence to the court.

I am pleased to say that the DfT has looked at all of the facts and found significant flaws in the way its officials handled the process. They have basically acknowledged that what we had been saying is correct. The same procedures were not followed and 'deeply regrettable and completely unacceptable mistakes' were made by the Department.'

At the House of Commons Select Committee we called for all franchise competitions to be paused and a thorough, independent review of the process. We are grateful that Patrick McLoughlin is now doing this.

We also appreciate the DfT publicly acknowledging these errors, and are hopeful they will now accept that Virgin Trains should carry on running the West Coast Main Line and ensure that passengers continue receiving our team's award-winning service.

Finally, I would like to thank our staff for their incredible work through unsettling times and to all our passengers who have been so supportive. I would particularly like to thank those who signed Ross McKillop's e-petition that resulted in the House of Commons debate, and all those who believed that we were right in thinking there was a case to answer."

http://news.sky.com/story/992425/wes...ise-award-axed

denphone 03-10-2012 05:57

re: [Update] FirstGroup WCML franchise Award revoked
 
Thats excellent news.:tu:

Ravenheart 03-10-2012 06:26

re: [Update] FirstGroup WCML franchise Award revoked
 
well that's a positive start to the morning :)

Sirius 03-10-2012 06:43

re: [Update] FirstGroup WCML franchise Award revoked
 
Quote:

Originally Posted by Ravenheart (Post 35480559)
well that's a positive start to the morning :)

Not for those who may have to pay back sweeteners :LOL:

Well done Sir Richard

Wicked_and_Crazy 03-10-2012 07:16

Re: Virgin Trains loses West Coast Mainline franchise (Update)
 
Quote:

Originally Posted by Sirius (Post 35470430)
I would say this Government has grown a pair but they have not, in the end they had no legal choice other than to agree a review.

The government had all the choices they needed. If First made a stupid bid that's no ones business but their own. The government should then manage them and impose penalties where they fail.

Chris 03-10-2012 08:08

Re: Virgin Trains loses West Coast Mainline franchise (Update)
 
Quote:

Originally Posted by Wicked_and_Crazy (Post 35480564)
If First made a stupid bid that's no ones business but their own.

Actually it's not. The Government's responsibility is to see that the franchise is handed to a company that can fulfil it, not hand it to a reckless bidder and then sit back and wait to collect the fines.

First's bid was widely derided because it claimed it could massively increase passenger numbers on a route that's already close to capacity and because almost all of the additional cash over and above what Virgin was promising was back-loaded on the final couple of years of the franchise, i.e. so far in the future that if they failed and had to bail out, the taxpayer would have had no additional benefit over and above what would have resulted from the incumbent remaining in charge.

---------- Post added at 08:08 ---------- Previous post was at 08:00 ----------

I wonder what went on in the DfT over the past few weeks though. Justine Greening and then Patrick McLoughlin were both so adamant the franchise was properly assessed and awarded but then seemed in a right hurry to conclude it in the face of all the complaints. Now there are suddenly "significant technical flaws" evident in the risk assessment. I'd suggest Greening's head should be on the block were it not for the fact she's already had the chop. The question now is, having come in after the horse had bolted, how much did McLoughlin actually know about the decision-making process? Did he simply believe what Sir Humphrey told him?

Damien 03-10-2012 08:13

re: [Update] FirstGroup WCML franchise Award revoked
 
Highlights how stupid the original decision was and vindicates Virgin's claims that the process was flawed and that FirstGroup's bid was high-risk and unlikely to be delivered. Any rational person would have looked at FirstGroup's offer of more trains, with more seats, at cheaper prices with more money being delivered and asked 'How is this possible?'.

Still thankfully the Government has seen sense and revoked the bid, would rather people own up to their mistakes and fix it than blindly press ahead to avoid being found out.

So what 'mistakes' did the bidding process have? Was it just that they didn't check if a bid's claims were actually achievable and simply gave it to the highest bidder?

Chris 03-10-2012 08:37

re: [Update] FirstGroup WCML franchise Award revoked
 
Seeing as they have pulled the plug on it before it got aired in court, we may never know ...

---------- Post added at 08:37 ---------- Previous post was at 08:26 ----------

I think we may actually have a debt of gratitude to First here. They submitted a bid that everyone except First seemed to believe was inachievable, yet it went through the DfT's assessment process and came out the winner. Had First's bid been only mildly crazy, rather than suicidal (as it was described by some "industry watchers" at the time), we may never have seen a proper review of what is now obviously a deeply flawed process.

Damien 03-10-2012 08:47

re: [Update] FirstGroup WCML franchise Award revoked
 
The Government has said it will be run by the state until a new process is completed but the same trains and staff will be used? How is that possible? Why not take Virgin up on the offer to run it in the interim as a non-profit (I guess that gives them a unfair advantage when it comes to bidding).

MalteseFalcon 03-10-2012 08:52

re: [Update] FirstGroup WCML franchise Award revoked
 
So who actually has the franchise in December then? Got a relative travelling down for Christmas and she uses Virgin trains, so am just wondering if there will actually be any trains running on the WCML.

Osem 03-10-2012 08:53

re: [Update] FirstGroup WCML franchise Award revoked
 
I wonder what the true nature of the 'errors' was and whether those directly responsible will be held accountable in some meaningful way. As for resignations, well I think it's a tad harsh to seek someone's demise if they've relied, in good faith, on assessments made by supposedly reliable officials who turned out not to be. Having said that, if the mistakes made should have been quite obvious or, worse still, were known but 'overlooked' for reasons of expediency then that's a very different matter and perhaps heads ought to roll.

Chris 03-10-2012 09:08

re: [Update] FirstGroup WCML franchise Award revoked
 
Quote:

Originally Posted by Damien (Post 35480583)
The Government has said it will be run by the state until a new process is completed but the same trains and staff will be used? How is that possible? Why not take Virgin up on the offer to run it in the interim as a non-profit (I guess that gives them a unfair advantage when it comes to bidding).

I suspect the procedure for running an unfranchised line is set down in the original legislation that privatised the railways. If not there, then there must be an established legal basis elsewhere because the East Coast has been run by the State since 2010.

The staff who operate the service for Virgin would have transferred to First via TUPE anyway so there is no problem with them transferring to employment by the State in the meantime. The trains are leased, not owned, and the timetable is already planned months in advance so it would actually be more difficult to try to change it than to simply carry on.

Pretty much the whole of VT's staff will continue as normal while this mess is sorted out. The only visible change will be that the operation will have to be de-branded. Branson's offer to run it without profit was a canny one as he was never going to be allowed to run it for a profit under these circumstances - all he was really after was keeping the Virgin brand stuck to the outside of the trains for a bit longer. It seems he may not get that wish.

---------- Post added at 09:08 ---------- Previous post was at 08:55 ----------

I have altered the thread title as it is becoming clear that whatever happens on 9 December, Dickie B. won't be running it ...

Derek 03-10-2012 09:27

re: [Update] FirstGroup WCML franchise Award revoked
 
So if I'm reading this right the conservatives have basically (temporarily) re-nationalised a chunk of the railway system? :shocked:

Chris 03-10-2012 09:41

re: [Update] FirstGroup WCML franchise Award revoked
 
Not yet ... Virgin has the franchise until 8 December. But yes, come 9 December they will have no choice but to take the WCML under State control, and we will have a situation where both of the most important inter-city routes are run by the State, because the ECML has been that way for 2 years now.

State-run trains zipping along State-owned tracks ...

Osem 03-10-2012 09:44

re: [Update] FirstGroup WCML franchise Award revoked
 
It must be contagious:

Quote:

The Conservative Party has called for an inquiry into Lord Adonis' handling of the crisis on the East Coast rail franchise that prompted the Transport Secretary to seize control of the London to Scotland services.
http://www.telegraph.co.uk/finance/n...ranchise.html#

;)

Maggy 03-10-2012 09:44

re: [Update] FirstGroup WCML franchise Award revoked
 
What a complete and utter botch up..When will they get public transport right?It doesn't matter who is in power they still make a cow pat of it.:(

Osem 03-10-2012 09:55

re: [Update] FirstGroup WCML franchise Award revoked
 
Quote:

Transport Secretary Patrick McLoughlin said it was "deeply regrettable" that mistakes had been made by staff within the Department for Transport. Several staff have been suspended.
http://www.bbc.co.uk/news/business-19809717

The knives are out.

I dare say those found culpable will be moved to the MOD...

Sirius 03-10-2012 11:47

re: [Update] FirstGroup WCML franchise Award revoked
 
Quote:

Originally Posted by Osem (Post 35480619)
http://www.bbc.co.uk/news/business-19809717

The knives are out.

I dare say those found culpable will be moved to the MOD...

Please not the mod :shocked:

Wicked_and_Crazy 03-10-2012 12:38

Re: Virgin Trains loses West Coast Mainline franchise (Update)
 
Quote:

Originally Posted by Chris (Post 35480566)
Actually it's not. The Government's responsibility is to see that the franchise is handed to a company that can fulfil it, not hand it to a reckless bidder and then sit back and wait to collect the fines.

Just like they have done with the NHS and PCP then :rolleyes:

I wasn't suggesting they award a contract and collect the fines. I was merely suggesting that the government should be satisfied the contract can be delivered for the price but impose a fine structure that would benefit the government should the contact fail rather than letting the contractor walk away.

Damien 03-10-2012 12:45

re: [Update] FirstGroup WCML franchise Award revoked
 
Why did the Government wait until the night before the day the court case was due to start? Were they hoping Virgin would pull out? Or did they simply only check now, 1 month and a half after Virgin raged about the process? Maybe the former transport security was demoted because they knew this was coming?

Chris 03-10-2012 12:45

Re: Virgin Trains loses West Coast Mainline franchise (Update)
 
Quote:

Originally Posted by Wicked_and_Crazy (Post 35480684)
Just like they have done with the NHS and PCP then :rolleyes:

I wasn't suggesting they award a contract and collect the fines. I was merely suggesting that the government should be satisfied the contract can be delivered for the price but impose a fine structure that would benefit the government should the contact fail rather than letting the contractor walk away.

They certainly should, and hopefully the penalty structure will be addressed by the relevant independent review, which was announced earlier this morning.

Also, I see that almost as quickly as the Government suggested it was going to nationalise the WCML a la East Coast, it has now decided to give The Bearded One his greatest wish - an extension to his existing franchise while this is worked out.

That, to me, is the best solution, as the £40 million the government is already having to pay out to reimburse the franchise bidders for their trouble will not now be compounded by a lot of unnecessary debranding/rebranding costs.

Osem 03-10-2012 13:01

Re: Virgin Trains loses West Coast Mainline franchise (Update)
 
Quote:

Originally Posted by Chris (Post 35480690)
They certainly should, and hopefully the penalty structure will be addressed by the relevant independent review, which was announced earlier this morning.

Also, I see that almost as quickly as the Government suggested it was going to nationalise the WCML a la East Coast, it has now decided to give The Bearded One his greatest wish - an extension to his existing franchise while this is worked out.

That, to me, is the best solution, as the £40 million the government is already having to pay out to reimburse the franchise bidders for their trouble will not now be compounded by a lot of unnecessary debranding/rebranding costs.

As happens every time these people decide to give the impression of reform by renaming/rebranding govt. departments with same civil servants doing pretty much the same jobs in the same offices.

TheDaddy 03-10-2012 15:32

Re: [Update] FirstGroup WCML franchise Award revoked
 
Quote:

Originally Posted by Derek (Post 35480603)
So if I'm reading this right the conservatives have basically (temporarily) re-nationalised a chunk of the railway system? :shocked:

Its already nationalised, it costs three times more in subsidies nationally now than it did under br

Glad the worst group didn't get it, you only have to look at the promised they made to get the buses and see what the service is like now to know they're full of it.

Julian 03-10-2012 15:55

Re: [Update] FirstGroup WCML franchise Award revoked
 
Quote:

Originally Posted by TheDaddy (Post 35480740)
Its already nationalised, it costs three times more in subsidies nationally now than it did under br

Glad the worst group didn't get it, you only have to look at the promised they made to get the buses and see what the service is like now to know they're full of it.

THIS is their bus service. :rolleyes:

Fortunately they won't get near WCML. :)

Maggy 03-10-2012 16:21

Re: [Update] FirstGroup WCML franchise Award revoked
 
Quote:

Originally Posted by Julian (Post 35480754)
THIS is their bus service. :rolleyes:

Fortunately they won't get near WCML. :)

Quote:

A spokesman from First said: 'The exact cause of the incident is not yet known. This will be thoroughly investigated and we would like to offer our sincere apologies to anyone who was inconvenienced by the incident.'
Even the police said they could not say what caused the incident..

Really? 'Cos I'm pretty certain I could have a stab at what happened..:rolleyes:

And I hate First buses..they are the ones who have decided my borough only gets a last bus at 7pm.

Derek 03-10-2012 16:23

Re: [Update] FirstGroup WCML franchise Award revoked
 
Quote:

Originally Posted by Maggy J (Post 35480773)
Really? 'Cos I'm pretty certain I could have a stab at what happened..:rolleyes:

Those pesky bridges lowering themselves at the last minute to catch out drivers again.

martyh 03-10-2012 22:53

Re: [Update] FirstGroup WCML franchise Award revoked
 
Quote:

Originally Posted by Osem (Post 35480619)
http://www.bbc.co.uk/news/business-19809717

The knives are out.

I dare say those found culpable will be moved to the MOD...


Quote:

Originally Posted by Sirius (Post 35480659)
Please not the mod :shocked:

MOD procurement has been working like that for years ,it's expected from them ;).


Just a thought ,but does the ECML need to be franchised out ,couldn't the government simply allow VT to run the line indefinitely with regular government reviews to make sure that it is running as it should and only offer the franchise out to bids if the service drops below a predetermined level .

Another thought ,wasn't there some argy bargy about the contract for new rolling stock given to a foreign company ?

Over the last 3 weeks i have seen approximately 30 brand spanking new First buses heading up the A1 towards Doncaster and Wetherby ,can i assume they will now be heading back south and returned for a refund :)

Osem 04-10-2012 12:48

Re: [Update] FirstGroup WCML franchise Award revoked
 
From what I've heard it seems that some fairly basic and fundamental errors were made in the numbers these guys were crunching. If so and given the huge cost to the public purse, are those responsible going to be sacked or just suspended on full pay then moved sideways?

You have to wonder how long these people were in their roles what other mistakes they might have made along the way for similar reasons. There really needs to be an investigation into this matter to examine the true extent of the ineptitude that's now evident both in what was done and the checking procedures which should have picked up these mistakes.

Pierre 04-10-2012 13:01

Re: [Update] FirstGroup WCML franchise Award revoked
 
£40 million, well spent.

Stephen 04-10-2012 13:02

Re: [Update] FirstGroup WCML franchise Award revoked
 
Sitting in 1st class on a Virgin Train right now I hope the government let VT keep running the WCML after the 9th December or at least until they have come to a decision.

I c'mon there were definitely some backhanders involved in the final decision to award the rights to First and am glad it's even decided to fully review the bidding process and try to find out what went wrong.

devilincarnate 05-10-2012 17:42

Re: [Update] FirstGroup WCML franchise Award revoked
 
It looks like they want to look at other things now?

Quote:

Three Tory MPs with constituencies near the factory have written to Mr McLoughlin demanding a full review of the contract.

Mid Derbyshire Tory MP Pauline Latham said: “The bidding processes used by the Department for Transport are flawed and the decision by the Government clearly shows that the department is not fit for purpose.”

The 1,400 Bombardier jobs have already been axed but more than a year after Siemens won the battle to make the 1,200 carriages for the Thames London commuter route the final contract has still not been signed.
http://www.mirror.co.uk/money/city-n...rnment-1361108

Chris 05-10-2012 17:55

Re: [Update] FirstGroup WCML franchise Award revoked
 
Quote:

Originally Posted by Stephen (Post 35481154)
Sitting in 1st class on a Virgin Train right now I hope the government let VT keep running the WCML after the 9th December or at least until they have come to a decision.

Hooray for Virgin Group staff perks ... :D

Stephen 05-10-2012 20:28

Re: [Update] FirstGroup WCML franchise Award revoked
 
I know it's great :) Again on the way back :)

denphone 15-10-2012 08:25

Re: [Update] FirstGroup WCML franchise Award revoked
 
Virgin in talks on West Coast route contract extension

http://www.bbc.co.uk/news/uk-19944782

Quote:

Virgin Trains will be asked to continue to run services on the West Coast Mainline for at least another nine months after the latest decision on the route franchise was scrapped.

The Department for Transport says it will enter into negotiations with Virgin for the "temporary" contract.

A competition will then be run for a new franchise agreement.
Excellent news.:tu:

Sirius 15-10-2012 08:26

Re: [Update] FirstGroup WCML franchise Award revoked
 
Quote:

Originally Posted by denphone (Post 35485102)
Virgin in talks on West Coast route contract extension

http://www.bbc.co.uk/news/uk-19944782



Excellent news.:tu:


Excellent

Maggy 15-10-2012 14:19

Re: [Update] FirstGroup WCML franchise Award revoked
 
Hmm! We'll see..

Ravenheart 06-12-2012 08:01

Re: [Update] FirstGroup WCML franchise Award revoked
 
Virgin given 23 month extension to West Coast operation

http://www.bbc.co.uk/news/uk-20620787

Quote:

The government has announced Virgin Trains will run the West Coast Mainline for a further 23 months - hours before a report into the collapse of the line's franchise deal is published.

RB2004 09-12-2012 04:10

Dunno why but whenever I went on virgin trains the carriages smell funny like a toilet smell.

Apparently I'm not alone,

https://www.google.co.uk/search?q=virgin+trains+toilet+smell&ie=UTF-8&oe=UTF-8&hl=en-gb&client=safari

I for one will not miss that if another company took over as there is no excuse for it.

They have staff on board who can clean if need be, as do they have cleaners who come on the train either end tidying up

Chris 09-12-2012 09:56

Re: [Update] FirstGroup WCML franchise Award revoked
 
The Pendolino toilet smell is a well-known phenomenon. They have spent much time and energy trying to fix it by moving various vents and air-con intakes around but unfortunately they do seem to be stuck with it.


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