FirstGroup Statement on Intercity East Coast Franchise Competition

Dec. 1, 2014
FirstGroup notes the announcement Nov. 27 by the Department for Transport (DfT) concerning the new InterCity East Coast franchise.

FirstGroup notes the announcement Nov. 27 by the Department for Transport (DfT) concerning the new InterCity East Coast franchise.

Commenting, Tim O’Toole, FirstGroup’s chief executive, said:

“Our bid for the East Coast franchise was ambitious yet realistic. Had it been selected, it would have created a world class railway for passengers and value for taxpayers with a balanced level of risk and returns for shareholders.

“As one of the UK's most experienced operators, we remain committed to the rail market but we are dissatisfied not to have secured any of the franchises that have come up for tender in this first round.

“Whilst we will retain a disciplined approach to bidding, we will continue to examine and assess the feedback from this and previous rail bids to help shape our approach to future competitions.

“We are shortlisted to run the next TransPennine Express franchise, and are negotiating with the DfT to extend our current operation of that route to February 2016. We are also negotiating with the DfT for a direct award to operate First Great Western, our largest franchise, through to at least March 2019.

“There are 12 franchise competitions still to take place and we remain focused on reaching our desired position in rail by the end of the process, which is to achieve earnings on a par with the previous franchising cycle at an acceptable level of risk and return."