FirstGroup looks likely to be handed a three-and-a-half year extension to its current Great Western franchise.
In a new franchise schedule document published by the Department for Transport (DfT), the government has confirmed that a direct award contract will run from the end of the current franchise, September 2015, to March 2019, with an option for a further year.
It is a welcome announcement for FirstGroup, which in just a few months has lost out in competitions for the ScotRail and Thameslink, Southern and Great Northern franchises.
Several incumbent operators have already been gifted direct award contracts, the most recent of which was Southeastern, to act as a stopgap before new long-term franchise deals have been agreed.
Tim O’Toole, FirstGroup chief executive, said: “A period of detailed negotiation will follow, but we are very pleased that, after a consultation process in which the DfT sought the views of stakeholders and user groups across the line of route, the DfT intend to negotiate a direct award with us…”
“This offers good value and better services for First Great Western passengers and in particular, will provide stability and allow the planned major projects and new trains to be delivered.”
