FirstGroup casts Virgin as sore loser

FirstGroup has accused Virgin Rail Group of being a sore loser over the West Coast rail franchise, which the Department of Transport (DfT) has awarded to FirstGroup, noting that Virgin's legal challenge to the selection process came only after Virgin had lost out in its bid to retain the franchise.

"We have every confidence in the DfT's process which is rigorous, detailed and fair and in which bids are thoroughly tested. There has been no complaint about

the process, which was carefully described in advance, until Virgin Rail Group had lost commercially," a statement from FirstGroup said.

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On Tuesday, Virgin Rail Group, the joint venture of transport company Stagecoach and Richard Branson's investment vehicle Virgin Group, began court proceedings seeking a review of the decision by the Department for Transport to award the new InterCity West Coast rail franchise to a subsidiary of FirstGroup.

Branson, who described Virgin's bid as strong and deliverable, said that he was "extremely disappointed" over the Department for Transport's (DfT) decision, branding it a reflection of its "insanity".

Writing on his personal blog, Branson said: "Based on the current flawed system, it is extremely unlikely that we would bid again for a franchise."

Branson's statement throws into doubt the future of the Virgin Rail joint venture, in which Stagecoach has a 49% stake.

As for FirstGroup, it said it wants to ensure a smooth transition with continuity for staff and passengers alike when it takes over the franchise on December 9th.

"We want to get on with delivering the many benefits and improvements we are offering without delay or disruption," FirstGroup claimed.

JH