Thursday 12 May 2016

First Group Rejoice, RMT and Virgin Complain Over New Approval Given To Run Trains On East Coast

by Benson Agoha | Transport

(* Credit: via Wiki)
Rail workers Union has kicked against the approval given to FirstGroup to run trains on the East Coast, saying FirstGroup will only run selective routes, and ignore the public sector option.

In a statement made available to Woolwich Online, RMT said that even though the public sector delivered financially and service-wise, it was thrown off for two private companies that will only `whack up fares' milk the public.

RMT's reaction comes as new emerged that rail regulator, The Office of Rail Road (ORR), has granted approval for FirstGroup to launch open access services between Edinburgh, North-east England and London.

The ten-year deal, according to the report, will allow FirstGroup to operate five trains a day each way from London King's Cross to Edinburgh, via intermediate stations at Stevenage, Newcastle and Morpeth from 2021.

It means that FirstGroup will compete with Virgin Trains which currently runs the east coast and holds franchise to run services until at least March 2023.

FirstGroup, which operates FirstBus and three rail networks including Great Western Railway, First Trans Pennie Express and First Hull Trains, claimed its trains would offer cheaper fares and free Wi-Fi, making them a better option than other rail services and air travel.

Tim O'Toole (right), gladly said: "I'm pleased that the ORR has granted track access rights for our unique low-cost service between London, the north-east of England and Edinburgh."

"This is great news for passengers, as our new service will widen the choice of travel options between these cities and offer an attractive alternative to those available today."

"We will offer genuinely low fares at half the average price of today, while adding significant benefits to the UK economy" he said, adding that the average fare would be "less than £25".

But Stagecoach Group criticised the decision to allow FirstGroup to run competing services, with its Chief Executive, Martin Griffiths, saying: "We do not believe the granting of these services within a franchised system and without a level playing field is in the best interests of passengers, taxpayers or communities."

"We will assess the ORR decision and implications in detail and review our options."

RMT General Secretary Mick Cash said: "This fit up by the Government gives First Group a chance to cherry-pick open access services on the East Coast in the name of profit while the public sector option is ignored yet again."

"The public sector was thrown off the East Coast despite delivering both financially and in service terms and now we have two private companies with the green light to whack up fares and milk this inter-city service for every penny they can get."

"This wild west, bandit capitalism on Britain's railways does nothing to tackle the backlog of essential investment and maintenance and does everything to line the pockets of the speculators."

( * With contribution from STV News. )


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