VIRGIN founder Richard Branson has claimed that his rail team would make a much better job of running East Coast, because people employed by Government are not 'hungry' enough.
However, he has warned that the premiums paid to the DfT by a Virgin East Coast could be lower, predicting that although Virgin would make 'massively' more, it would invest a greater slice of its profits in upgrading rolling stock and other assets.
The DfT has started the competition to return East Coast to the private sector in February 2015, three months before the next General Election. Most other franchises were extended beyond the election on 26 March, including Virgin's current West Coast contract. This will now run until 2017 after initially being agreed as a stopgap management contract on 6 December last year in the wake of the collapse of the Intercity West Coast competition.
Sir Richard was speaking in Edinburgh at the launch of three new domestic Virgin air routes between London and Edinburgh, Aberdeen and Manchester, where he said of East Coast that "we would want to invest considerably in improving the track, trains, and speed times".
He continued: "The feedback we get is that East Coast passengers would like to see a change. We have years of experience in building companies, how to get people working for us really motivated and steamed up. If you just work for the government you don't get people hungrily trying to make a real difference."
He also made it clear that the legal challenge which Virgin mounted last year after the DfT announced that West Coast had been won by FirstGroup was not something he would want to see repeated in a future franchise competition, saying: "We have to be sure that the rules of engagement are different from last time."
The changing face of franchises has some disadvantages according to Sir Richard, who pointed out that a contract running only until 2017 would delay longer-term, major investment on West Coast. The Guardian has reported that he said: "We would have ideally liked to be able to bid for West Coast sooner."
Virgin's bid for the 15-year West Coast contract last year included plans for a new fleet of 'baby' Pendolinos, which would have replaced the diesel Voyagers on newly-electrified routes. This proposal is now on hold, but some additional routes do seem set to go ahead, with intercity trains planned for Blackpool in December. There have also been celebrations in the area after it was announced that the new through trains from London will call at Poulton-le-Fylde after all, subject to final tests.
Preston North and Wyre MP Ben Wallace said he had received confirmation of the rethink after a meeting with Virgin..
He told the Blackpool Gazette: “I am delighted that Virgin has listened and barring any technical difficulties will be including Poulton on the Blackpool to London line. I would like to thank all concerned residents who contacted me to highlight their concerns and also pass on their local knowledge to me."