(AFP circulated the following on June 30, 2009.)
LONDON — The government said Wednesday it would temporarily nationalise the country’s loss-making east coast railway line, stripping operator National Express Group of its franchise to run the route.
Rail and bus operator National Express had earlier announced that it was not willing to support the service, which has suffered sliding passenger numbers and dwindling revenues because of the recession.
The group, which failed in its attempts to renegotiate the franchise deal with the government, said it would relinquish control later this year.
“I have therefore established a publicly-owned company, which will take over this franchise from the point at which National Express East Coast ceases to operate,” said British Transport Minister Andrew Adonis.
“We will agree an orderly handover with National Express. Until that date, National Express will operate services on the current basis; after that date the new public company will do so.”
Adonis added that the government intended to seek a new franchise operator from the end of 2010.
The east coast main line railway connects London and Edinburgh via destinations including Peterborough, Doncaster, Leeds, York and Newcastle.
In a further blow, National Express also announced the departure of its chief executive Richard Bowker, who negotiated the east coast franchise deal in 2007.
Earlier this week, the embattled group snubbed a takeover approach from rival British transport operator FirstGroup.