Stagecoach’s East Midlands Trains Re-Awarded Franchise

In a deal agreed with the Department for Transport, the Perth-based group’s East Midlands Trains subsidiary has agreed to invest £8 million directly to improve stations and on-board services and to offer mobile ticketing and add ticket machines.

East Midlands Trains will also be upgrading on-board WiFi on its London services to 4G, with the aim that this will be free to all passengers when the next franchise starts from 2018.

Stagecoach will pay the United Kingdom government GBP150.0 million to run the franchise through to 2018.

The rail operator extended its control of the franchise until at least March 4 2018, forecasting a range of benefits.

Rail minister Claire Perry said the agreement would mean “significantly better journeys for passengers”.

The Union’s General Secretary, Mick Cash was similarly sour in his sentiment, saying; “This is another great day for the rail rip-off merchants as Stagecoach blag themselves a money-spinning franchise extension on East Midlands Trains without a hint of competition and with no consideration of the public sector option whatsoever”.

East Midlands Trains will introduce new technology to help provide faster and better customer information – alongside a new automated refunds system.

Martin Griffiths, chief executive of Stagecoach Group, said: “This is a significant package of investment for customers travelling on East Midlands Trains, Britain’s most punctual long-distance train operator”.

Planned improvements to be delivered for customers include 22 extra services between Nottingham and Newark Castle on Saturdays by December 2016 and a £1m investment in improving station accessibility, as well as a series of passenger improvements regarding timetables and customer assistance.

Stagecoach Group said the new East Midlands agreement would not affect its profits expectations for the year. The agreement with the Department for Transport will now allow us to invest even further in the areas that matter most to our customers.

The RMT’s leading line on the announcement is: “Another great day for the rail rip-off merchants as Stagecoach blags three year East Midlands extension”.

Stagecoach said it will provide “committed inter-company loan facilities of up to £41 million to East Midlands Trains to replace “all loan facilities and bonds now in place “in relation to the present East Midlands Trains franchise”.