Stagecoach Group PLC InterCity East Coast rail franchise (5122F)
February 20 2015 - 10:17AM
UK Regulatory
TIDMSGC
RNS Number : 5122F
Stagecoach Group PLC
20 February 2015
20 February 2015
Stagecoach Group Plc
InterCity East Coast rail franchise
Stagecoach Group plc ("Stagecoach") welcomes the announcement by
the Competition and Markets Authority ("CMA") that it has
reasonable grounds to believe that the undertakings proposed by
Stagecoach in respect of the award of the new InterCity East Coast
franchise ("ICEC") to its venture with Virgin, Inter City Railways
Limited ("ICR") are acceptable.
The Department for Transport ("DfT") announced the award of the
franchise to ICR on 27 November 2014. Stagecoach holds 90% of the
share capital of ICR and Virgin holds the remaining 10%.
The CMA is required by law to carry out a "Phase 1" review of
all UK rail franchise awards. It identified limited issues in
respect of ICEC. The CMA has now indicated that there are
reasonable grounds to believe that, subject to consultation, the
undertakings that Stagecoach proposed address the issues identified
by the CMA.
Stagecoach and Virgin have worked closely with the existing
operator of the franchise in preparation for the start of the
contract on 1 March 2015. Both partners are finalising arrangements
to ensure a smooth transition for customers and employees and the
running of services under the Virgin Trains East Coast brand as
planned.
ENDS
For further information, please contact:
Stagecoach Group plc www.stagecoachgroup.com
Investors and analysts
Ross Paterson, Finance Director: 01738 442111
Bruce Dingwall, Group Financial Controller: 01738 442111
Media
Steven Stewart, Director of Corporate Communications: 01738
442111 or 07764 774680
This information is provided by RNS
The company news service from the London Stock Exchange
END
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