Rail operator promises more standard seats, better Wi-Fi and station upgrades as it pays government £430m to run route
Virgin has won a west coast mainline extension. Photograph: Danny Lawson/PA
Virgin Trains has won the contract to carry on running the west coast mainline rail franchise by agreeing to provide thousands of extra standard seats, better Wi-Fi, station upgrades and other improvements.
The Department for Transport (DfT) said Sir Richard Branson's operation would pay more than £430m to run the route, which links London, Scotland and Wales. Virgin and its joint venture partner Stagecoach will run the route from 22 June until the end of March 2018. Virgin has operated the west coast service since 1997 though it only held on to its contract after a dispute in 2012 when the government initially awarded the franchise to FirstGroup. At the time Branson said Virgin would "almost definitely back out" of bidding for more franchises, describing the bidding process as flawed.
Patrick McCall, Virgin Trains' co-chairman, said: "We're delighted to have reached a deal after some tough negotiations with the DfT. It puts the problems of 2012 firmly behind us, and shows the clear benefits of a well-run franchise system."
Virgin has agreed to convert a first-class carriage to standard class on more than 20 trains, increasing standard-class seats by 5,500 a day. It will install superfast Wi-Fi on all 76 trains, and spend more than £20m to improve stations, including waiting rooms, seats and shelters.
Virgin will also operate new direct services from Shrewsbury and Blackpool to London. It will also employ more apprentices and offer extra graduate placements.
Patrick McLoughlin, the transport secretary, said: "This deal will provide thousands more seats and better journeys for the tens of thousands of passengers who use these services every day. The west coast provides a vital artery between London and Scotland and it is crucial we do everything we can to improve services on this much-used route."
Go-Ahead, the bus and train operator, announced good trading for its current financial year.
In a statement, the group said profits for the year to the end of this month would be above earlier expectations because of strong performance at its rail operations. In May, Go-Ahead won the contract to run the Thameslink, Southern and Great Northern routes.
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