News

News | Published May 25 2019

Virgin Trains launch legal action against Transport Secretary

Sir Richard Branson has launched a legal challenge against Transport Secretary Chris Grayling's decision to bar Virigin Trains, and its partner Stagecoach, from the bidding process to acquire West Coast Rail. 

Branson has filed claims with the High Court calling for a judicial review of the procurement process, stating that the government did not adopt a competitive tendering approach.

The Department for Transport is already contesting legal challenges from Arriva and Stagecoach over the manner in which it tendered the East Midlands rail franchise. The government branded three of Stagecoach’s bids “non-compliant” back in April, amid a row over pensions.

The West Coast line is currently jointly operated by both Virgin Trains and Stagecoach with the proposed re-tender bringing on board the French state-controlled operator, SNCF.

“Stagecoach is an experienced bidder who knowingly submitted non-compliant bids on all competitions. In doing so they disqualified themselves”, said a DfT spokesperson.

“We have total confidence in our franchise competition process and robustly defend decisions that were taken fairly following a thorough and impartial evaluation process”.

The statement has faced backlash from both companies, as Stagecoach chief-executive Martin Griffiths said it is “disappointing” that the transport giant “had to resort to court action to find out the truth around the DfT’s decision-making process” over each bid.

Patrick McCall, Virgin Trains senior partner, described the situation as “frustrating”, claiming that the reason for the bid’s rejection had “nothing to do with looking after passengers or running a good train service”.

Authored by

Scott Challinor
Business Editor
@theparlreview
May 25 2019

Featured Organisations

Trinifold Management

Founded in 1974 by William Curbishley, Trinifold Management has been based in Camden Town since 1996 following a move from its initial base in Soho. P... Read more

Gr8 Engineering

GR8 Engineering is an innovative rigid plastic packaging company specialising in injection moulding, injection compression moulding, stretch blow moul... Read more

Shared Earth

Shared Earth is a fair trading company that believes in the ethical products that benefit artisans and craftsmen, as well as the planet. It is one of ... Read more

Latest News

OECD urges UK to hold fire on tech tax