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Monday, 10 September 2012

Virgin takes West Coast mainline case to MPs


Virgin Trains, a group company belonging to Sir Richard Branson, will appeal to the MPs in the UK to resolve the West Coast mainline case.
Virgin takes West Coast mainline case to MPs
Virgin Trains is aiming to legally challenge Government’s decision to award the London to Manchester route to First Group. Virgin has stressed that it cannot afford its £5.5billion bid for the project. Sir Richard Branson will use the hearing before the MPs to convince them that the system does not allow firms to run services at a profit and taxpayers money is then used to meet the gaps.
Due to the legal challenge posed by Virgin Trains, First Group is not likely to receive keys to the line on 9 December for the 14-year contract. Virgin had offered to run the line free of cost until the matter is resolved. However, some leaders might be considering the option of nationalizing the line on a temporary basis.
The leaders have raised concerns about how the decision to change the franchise would affect fares and levels of service on the route. The remarks comes after Louise Ellman, the chairman of the House of Commons transport committee wrote to transport secretary, Justine Greening urging for a delay in signing of the final contract until important issues are discussed.
More than 100,000 members of the public have signed a petition against the decision and it is also being supported by several celebrities including host of TV show The Apprentice, Lord Sugar, and celebrity chef Jamie Oliver.

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