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Virgin loses West Coast Franchise to First Group

You are here: Home > Forum > Miscellaneous > The real thing (anything else rail-oriented) > Virgin loses West Coast Franchise to First Group

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Virgin loses West Coast Franchise to First Group 21/08/2012 at 11:36 #35060
kbarber
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Unless I missed something what First said was that they would offer a lot more seats, not more trains. And they will take over the franchise at precisely the time the lengthened pendolinos are coming on stream. Two extra cars per train run is an awful lot more seats for no extra effort whatsoever.

Wasn't it Mark Twain who said there are three kinds of lies?...

Last edited: 21/08/2012 at 11:37 by kbarber
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Virgin loses West Coast Franchise to First Group 21/08/2012 at 11:51 #35062
Peter Bennet
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" said:
I heard they already decided not to renew it #FGW
Who do you mean by "they". If you mean First Group then they have made no UK Stock Market announcment to that effect (I'd expect that they would have to as it'd be market sensitive). Otherwise they have pre-qualified for three other franchises which will be decided in January so if "they" are the Dept of Trannsport "they" have jumped the gun.

Peter

I identify as half man half biscuit - crumbs!
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Virgin loses West Coast Franchise to First Group 21/08/2012 at 12:35 #35063
Stephen Fulcher
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They took the option not to extend their existing franchise which they had, but are still in the running for the new one.
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Virgin loses West Coast Franchise to First Group 21/08/2012 at 13:22 #35066
postal
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" said:
They took the option not to extend their existing franchise which they had, but are still in the running for the new one.
And if people have a problem with that, they should address their concerns to the people who wrote the franchise agreement, not the franchisor who is acting strictly within the terms of the contract they took on.

Perhaps the concerns are due to the problems FGW have had with things like over-crowding, lack of capacity etc. Now that wouldn't be down to the franchise being written in such a way that FGW were very tightly constrained in the rolling stock they were able to use and the difficulty in sourcing additional rolling stock within the terms of the franchise agreement, would it? And would that be because the franchise was written such a way that the franchisor was unable to act in a commercially sensible manner due to the terms of the franchise. Another one to have a go at the franchise writer rather than the franchisor, surely.

Privatisation of the railway clearly has a multitude of problems but given the problems that franchisors have because of the micro-management by the DaFT, would a nationalised railway run by the DaFT be any better equipped to react? And don't get me started about the DaFT and their plan to have every new train under the wires lugging several tons of cast metal and expensive engineering around because a civil servant who possibly travels on an EMU which joins/splits in 2 minutes has decreed that real trains can't join/split in less than 7 minutes.

“In life, there is always someone out there, who won’t like you, for whatever reason, don’t let the insecurities in their lives affect yours.” – Rashida Rowe
Last edited: 21/08/2012 at 13:23 by postal
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Virgin loses West Coast Franchise to First Group 21/08/2012 at 15:19 #35067
headshot119
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" said:
I work with Virgin (Not for), I believe they are a great company and do very well on West Coast. I think 'sour grapes' is a bit harsh considering the service on WC, and I deal with some problems the public never see.

Those of you who hate the seating are going to get worse seating when First Group start changing things, who do you think changed the seating on FGW!!

I honestly don't see how First can run more trains than run at the moment on West Coast, don't forget that WC don't have a diversionary freight route as with East Coast. I personally just don't see where they are going to get paths especially from Euston, we just don't have it. (I do the platforming and working with planning)

I think that new destinations are a plus but the logistics for some don't make operational sense, and are more of a gimmick.

As for the 6-car trains, my understanding is that it will be a Pantograph car in Voyagers, but I can't confirm it.
I doubt First Group who are already in huge debt can afford new trains. Bear in mind they have promised to pay £500million versus the £160million Virgin were paying. As you can see that's more than triple, so I doubt they can afford new trains.

This is MY PERSONAL view and we will have to wait and see what happens, and considering First Group's history I'm skeptical.

Guts
The extra trains come from the one extra path an hour they have found out of Euston.

The extra service to Bolton and Preston is likely to be an extension of one of the Manchester services through Bolton to Preston.

The eleven extra six car trains are highly unlikely to be voyagers but an add on order of shortened Pendolinos. The press release specifically says EMUs, last time I checked a voyager was a DEMU.

"Passengers for New Lane, should be seated in the rear coach of the train " - Opinions are my own and not those of my employer
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Virgin loses West Coast Franchise to First Group 21/08/2012 at 15:29 #35072
Stephen Fulcher
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" said:
" said:
They took the option not to extend their existing franchise which they had, but are still in the running for the new one.
And if people have a problem with that, they should address their concerns to the people who wrote the franchise agreement, not the franchisor who is acting strictly within the terms of the contract they took on.

Perhaps the concerns are due to the problems FGW have had with things like over-crowding, lack of capacity etc. Now that wouldn't be down to the franchise being written in such a way that FGW were very tightly constrained in the rolling stock they were able to use and the difficulty in sourcing additional rolling stock within the terms of the franchise agreement, would it? And would that be because the franchise was written such a way that the franchisor was unable to act in a commercially sensible manner due to the terms of the franchise. Another one to have a go at the franchise writer rather than the franchisor, surely.

Privatisation of the railway clearly has a multitude of problems but given the problems that franchisors have because of the micro-management by the DaFT, would a nationalised railway run by the DaFT be any better equipped to react? And don't get me started about the DaFT and their plan to have every new train under the wires lugging several tons of cast metal and expensive engineering around because a civil servant who possibly travels on an EMU which joins/splits in 2 minutes has decreed that real trains can't join/split in less than 7 minutes.
I agree entirely.

BR would have been far better equipped to react to rolling stock issues than the private operators of today.

I also suspect that the DfT would be unwilling to let any newly nationalised railway system have the "freedom" to operate the way it saw fit that BR enjoyed as this would involve the civil servants in Whitehall giving up the control they have now obtained.

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Virgin loses West Coast Franchise to First Group 21/08/2012 at 18:49 #35086
Peter Bennet
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5402 posts
" said:
" said:
They took the option not to extend their existing franchise which they had, but are still in the running for the new one.
And if people have a problem with that, they should address their concerns to the people who wrote the franchise agreement, not the franchisor who is acting strictly within the terms of the contract they took on.

Perhaps the concerns are due to the problems FGW have had with things like over-crowding, lack of capacity etc. Now that wouldn't be down to the franchise being written in such a way that FGW were very tightly constrained in the rolling stock they were able to use and the difficulty in sourcing additional rolling stock within the terms of the franchise agreement, would it? And would that be because the franchise was written such a way that the franchisor was unable to act in a commercially sensible manner due to the terms of the franchise. Another one to have a go at the franchise writer rather than the franchisor, surely.

Privatisation of the railway clearly has a multitude of problems but given the problems that franchisors have because of the micro-management by the DaFT, would a nationalised railway run by the DaFT be any better equipped to react? And don't get me started about the DaFT and their plan to have every new train under the wires lugging several tons of cast metal and expensive engineering around because a civil servant who possibly travels on an EMU which joins/splits in 2 minutes has decreed that real trains can't join/split in less than 7 minutes.
[/quote]

Was amused the other evening when the Shadow Transport Secretary (one of the Eagle sisters) without naming FGW was quite scathing of a TOC that had taken advantage of clauses in the franchise to leave the contract early - and I though - yes and who approved the contract terms they bid for?

" said:

BR would have been far better equipped to react to rolling stock issues than the private operators of today.

I also suspect that the DfT would be unwilling to let any newly nationalised railway system have the "freedom" to operate the way it saw fit that BR enjoyed as this would involve the civil servants in Whitehall giving up the control they have now obtained.
To some extent the way the franchises work these days the TOCs are more managing the enterprises on behalf of the State rather than what was envisaged when it all started. I'm not really sure what I think of the system, I don't really see that it's for the State to run the railways but I don't think the way it was de-nationalised was quite right either. Don't really know what the answer is (or should have been) but as I don't work for DfT there is no reason why I should.

Peter

I identify as half man half biscuit - crumbs!
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Virgin loses West Coast Franchise to First Group 28/08/2012 at 15:27 #35218
andyb0607
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Looks like the fun and games are continuing!

Virgin takes legal action

Last edited: 28/08/2012 at 15:27 by andyb0607
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Virgin loses West Coast Franchise to First Group 28/08/2012 at 15:31 #35221
jc92
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i like the paragraph that insinuates Mo Farah and jamie olivers signatures have impact as though they are experts on uk rail
"We don't stop camborne wednesdays"
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Virgin loses West Coast Franchise to First Group 28/08/2012 at 16:38 #35223
GeoffM
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Much is said of First's promise to add extra trains and services - but what were Virgin's plans in this regard?
SimSig Boss
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Virgin loses West Coast Franchise to First Group 28/08/2012 at 17:12 #35224
JamesN
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" said:
Much is said of First's promise to add extra trains and services - but what were Virgin's plans in this regard?
To shoot themselves in the foot by expaning into the UK Domestic Market

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Virgin loses West Coast Franchise to First Group 28/08/2012 at 17:23 #35225
postal
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One of the First Group points is that the Virgin marketing has had the effect of massively increasing the walk-up fares and reducing the times when cheaper fares are available. Tim O'Toole (MD, FGW) was on the radio a couple of weeks ago claiming the the last trains before the Saver cliff-edge and the first trains after are seriously over-loaded while the trains at the shoulders of the embargo are running very-much under-utilised. The FGW plan is to reduce the walk-on fares by up to 15% and revamp the cheap fare offers so that the under-used trains receive better usage. The total effect will be an increase in revenue which helps to underpin the FGW business case. I haven't travelled on the West Coast for a number of years now so have no idea whether this is a valid case. However, even if the marketing is poor, Virgin must still have been making so much money for Messrs. Branson and Souter that they are upset at the thought of losing the cash-cow. After all, it is reported in an Op-Ed piece by Ross Clark in The Times today that Branson personally received £15m. in dividends last year and as much as £24m. in 2007. Despite the media blitz from Branson, The Times article leads with the strapline "Branson's company is better at playing the subsidy game than looking after its passengers".

Those of us who paid inflated fares for decaying stock and infrastructure on the ECML for many years during which time the company paid a subsidy while Virgin enjoyed new stock, a new railway and a large subsidy can't help but enjoy the schadenfreude that this all brings.

“In life, there is always someone out there, who won’t like you, for whatever reason, don’t let the insecurities in their lives affect yours.” – Rashida Rowe
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Virgin loses West Coast Franchise to First Group 28/08/2012 at 17:57 #35226
GeoffM
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" said:
Tim O'Toole (MD, FGW) was on the radio a couple of weeks ago claiming the the last trains before the Saver cliff-edge and the first trains after are seriously over-loaded while the trains at the shoulders of the embargo are running very-much under-utilised. The FGW plan is to reduce the walk-on fares by up to 15% and revamp the cheap fare offers so that the under-used trains receive better usage. The total effect will be an increase in revenue which helps to underpin the FGW business case.
I think you mean First Group rather than fGW.

This overcrowding of the shoulder trains is exactly what happens on fGW already (I can't speak for Scotland or FCC). You'd think they ought to fix their own problems before criticising others for the same problem. fGW do have a sort of "nearly off-peak" buffer - something like up to 7pm is peak, up to 7:30pm is semi-peak, and beyond there is off-peak. I used to try not to leave Paddington until at least 8pm because of this overcrowding in the semi-peak and off-peak trains. So their proposed solution is unlikely to make much of a difference anyway - and just results in confusion for passengers - and presumably lots of income from fines for travelling on the 19:29 instead of the 19:31.

SimSig Boss
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Virgin loses West Coast Franchise to First Group 28/08/2012 at 18:02 #35229
Peter Bennet
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I've nothing against Virgin/Richard Branson as such (they did bring us the Sex Pistols amongst other bands after all) but I do find the way Mr B appears to think that his name is enough to get him what he wants a bit irksome and it appears that sizeable sections of the public, media and MPs appear to have jumped on his bandwagon. As a shareholder of FGP I do have concerns that they have set its sights rather ambitiously but, as far as I am aware, they won fair and square and that should be the end of it. If it goes wrong then then - hey - Directly Operated Railways will takeover, which in the case EC Trains has not been a disaster.

Peter

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Virgin loses West Coast Franchise to First Group 28/08/2012 at 18:20 #35231
Stephen Fulcher
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Directly Operated Railways should get all franchises.
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Virgin loses West Coast Franchise to First Group 28/08/2012 at 20:03 #35233
postal
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" said:
I think you mean First Group rather than fGW.
I stand corrected.

“In life, there is always someone out there, who won’t like you, for whatever reason, don’t let the insecurities in their lives affect yours.” – Rashida Rowe
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Virgin loses West Coast Franchise to First Group 29/08/2012 at 23:51 #35288
computeringjl
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well, if First loses money from their franchise, i would well hope they use their dividends to pay for it instead. at least their franchise is much much lower than the £1.4bn from NXEC, although that was right before the recession


Quote:
Directly Operated Railways should get all franchises
only the profitable ones

Last edited: 30/08/2012 at 00:01 by computeringjl
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Virgin loses West Coast Franchise to First Group 29/08/2012 at 23:58 #35289
Stephen Fulcher
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Losses of the loss-making ones are generally taken up by the Government in the form of subsidy in any case, so there is little difference in that regard.
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Virgin loses West Coast Franchise to First Group 31/08/2012 at 13:15 #35311
58050
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Never had all this song & dance when it was British Rail. Come back all is forgiven, that's what I say.
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Virgin loses West Coast Franchise to First Group 31/08/2012 at 15:29 #35313
moonraker
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Agreed +1 whole heartedly Pascal
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Virgin loses West Coast Franchise to First Group 31/08/2012 at 17:31 #35315
delticfan
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Same here, there's been too much fuss about shareholders and not enough about passengers. For all its faults, at least BR ran under one umbrella and you knew where you were. Railways are a public service like gas, electric and water etc., and should be run as such, not for profit.
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Virgin loses West Coast Franchise to First Group 31/08/2012 at 18:23 #35318
benstafford
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But not by the dft. Bring back the independent(ish) brb.
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Virgin loses West Coast Franchise to First Group 31/08/2012 at 18:32 #35319
postal
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I'm not sure whether it has any relevance, but I found a rather nice picture on the RSPB web-site at this link.

I'm told it is a picture of a bearded tit.

“In life, there is always someone out there, who won’t like you, for whatever reason, don’t let the insecurities in their lives affect yours.” – Rashida Rowe
Last edited: 31/08/2012 at 23:41 by postal
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Virgin loses West Coast Franchise to First Group 31/08/2012 at 18:34 #35320
58050
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I agree with your comment 'Delticfan' it shouldn't be run for a profit, but as an independant transport system for the country serving both passengers & the movement of bulk freight.
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Virgin loses West Coast Franchise to First Group 31/08/2012 at 21:59 #35322
Peter Bennet
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Latest news hot off the press.

Peter

I identify as half man half biscuit - crumbs!
Last edited: 31/08/2012 at 21:59 by Peter Bennet
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