Government nationalises East Coast rail service
Running of East Coast Main Line to be taken over by government, after National Express defaults
Also In The News
|
Yorkshire batsman Michael Vaughan has announced his retirement from all forms of cricket with immediate effect at Edgbaston today. |  |
Wednesday, 01, Jul 2009 05:43
The running of the East Coast Main Line is to be taken over by the government after National Express announced it would stop operating the service from the end of this year.
The rail franchise is estimated to have lost around £20 million in the first half of this year already due to declining passenger numbers.
Transport secretary Lord Adonis said a publicly-owned company will run the line, from London to Scotland, once National Express ceases to operate the franchise.
He said he had been forced to take the drastic action to nationalise the rail line to "ensure continuity of service to passengers, with no disruption or diminution of service standards".
Speaking on the Today programme, Lord Adonis said: "I am simply not prepared to bail out companies that are unable to fulfil their commitments. I would like to give our absolute assurances to the travelling public that there will be no disruption.
"We will reallocate this franchise in due course. We expect the east coast mainline to be under government control for about one year."
Commenting after National Express's failure to reach a deal with the Department for Transport over the East Coast line, the government would be exploring options on two of its other franchises as well.
The company also announced on Wednesday Richard Bowker, its chief executive, had stepped down.
A statement published today said the difficulties experienced in running the East Coast line were "purely financial" and brought about by the economic downturn.
Although discussions had fallen through, National Express said it would continue to comply with the terms and conditions of the franchise and would help ensure an "orderly handover".