Stagecoach Group PLC ORR decision on applications for access to ECML (0248Y)
May 12 2016 - 2:13AM
UK Regulatory
TIDMSGC
RNS Number : 0248Y
Stagecoach Group PLC
12 May 2016
12 May 2016
ORR decision on applications for access to East Coast Main
Line
Stagecoach Group plc ("Stagecoach") notes the announcement by
the Office of Rail and Road ("ORR") regarding applications to
operate new rail services on the East Coast Mainline ("ECML").
The ORR has approved the application made by Virgin Trains East
Coast ("VTEC"), in which Stagecoach has a 90% shareholding, to run
new services between London and Edinburgh, Harrogate, Lincoln and
Middlesbrough. These services formed part of VTEC's successful bid
for the East Coast rail franchise, which started in March 2015 and
is planned to run until at least 31 March 2023.
VTEC's core existing timetable has been approved from December
2017 when the current access contract expires. In addition, VTEC
has been granted firm rights for service extensions to Bradford,
Lincoln and Harrogate from May 2019, and for Edinburgh and
Middlesbrough from May 2021. Should capacity become available
sooner, VTEC's additional rights for service extensions to
Edinburgh could start from May 2019.
At the same time, the ORR has also approved an application from
FirstGroup to run open access services between London and Edinburgh
with firm rights from May 2021. As noted by the ORR, when these
services commence they are expected to impact revenue from VTEC
services.
Martin Griffiths, Chief Executive of Stagecoach Group plc, said:
"We are pleased that Virgin Trains East Coast's application has
been approved by the ORR. Customers are at the heart of our
extensive GBP140m investment plans to grow the East Coast franchise
and provide a high quality, competitive alternative to air and road
travel. We look forward to the introduction of our new Virgin Azuma
trains from 2018. In the meantime, we are continuing to deliver on
our plans by cutting journey times, transforming on-board service,
expanding the timetable, linking communities and making significant
premium payments to Government.
"With respect to the decision on open access between London and
Edinburgh, we do not believe the granting of these services within
a franchised system and without a level playing field is in the
best interests of passengers, taxpayers or communities.
"We will assess the ORR decision and implications in detail and
review our options."
A copy of the full ORR decision is available at:
http://orr.gov.uk/what-and-how-we-regulate/track-access/current-work/east-coast-main-line
Ends
Further information
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 07764 774680
This information is provided by RNS
The company news service from the London Stock Exchange
END
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