SPECULATION is growing the Government is about to announce the winner of the next Intercity West Coast franchise, and that the incumbent Virgin Trains may have come second place after operating the route for more than 15 years.
Although there is still official silence it is widely expected that an announcement is imminent, and could be made as soon as tomorrow morning.
Industry sources are suggesting that FirstGroup has offered a premium of £7 billion for the 14-year contract, and that it has topped the Virgin bid by £1 billion.
But Virgin has tried to influence government thinking. Richard Branson wrote to transport secretary Justine Greening recently, and is said to have warned her that excessively optimistic bids could lead to failure.
Both GNER and National Express had to surrender the East Coast intercity franchise after their business plans proved to be unachievable, and at present the East Coast route is operated by a state-owned company until it can be relet next year.
It is also being reported that the Department for Transport has tried to shield itself and taxpayers from the consequences of another financial meltdown, by requiring a record 'performance bond' of £70 million from the successful West Coast bidder.
Rail unions, meanwhile, are concerned about a possible loss of jobs on the route, following rumours that First is planning to reduce staff numbers by as much as 600, accompanied by cutbacks to on-board services.
It has also been claimed that Alstom, who built and maintain the tilting Pendolinos on the route, has been asked to indicate the cost of abolishing the on-board shop and replacing it with more seating, although Alstom has refused to confirm this.
Apart from First Group and Virgin Rail Group, 49 per cent of which is owned by Stagecoach, the other bidders are the international arm of Dutch state railways and a partnership between the French state railway and Keolis.