Transport ministers have confirmed that a legal challenge by Virgin has forced them to delay a new deal with First Group for the West Coast franchise.
Contracts were due to be signed last Tuesday (August 28), but late calls by Virgin, who have operated the route since 1997, for a judicial review has meant the competition remains open.
First Group was awarded control of the route after submitting a £5.5 billion bid and promising a series of improvements, including increased capacity between Birmingham and Glasgow.
Virgin immediately launched a campaign urging the Government to reconsider its bid, suggesting that First’s ‘unrealistic’ bid resembled that of National Express who was forced to hand back the keys to the East Coast Main Line.
Within just a few days of the decision, more than 100,000 people signed an online petition supporting Virgin’s bid to maintain control of the franchise.
In a written statement, Minister of State for Transport Theresa Villiers said: “As a result of a legal challenge, which the Government intends to defend robustly, we have not yet signed the contract with First West Coast, and consequently the competition remains live.
“I cannot give the full commercial details of the winning bid, or indeed of the other bids. Nor is it usual or appropriate – once litigation proceedings have commenced – for the Government to comment on the detail of that, other than to say that our legal advisers are fully engaged in addressing and responding to those proceedings.”
