egafd.com

First have themselves previous, for over-bidding on a contract and then pulling the plug.

THey had a franchise until 2016 on the south west lines but decided to make use of a get out clause to state they would be finishing in 2013.

The reasons for this are given in detail below, but basically

"First Group is handing back its ?1.1bn Great Western rail contract three years ahead of schedule after admitting that the deal, one of several ?1bn-plus franchises struck at the height of the credit boom, had become unsustainable. The public transport group is exercising an option to terminate the franchise in March 2013 and avoid ?826.6m in payments to the government due by 2016. Tim O'Toole, FirstGroup's chief executive, said the contract would have made undisclosed losses had he exercised an option to extend it. Instead, FirstGroup will join a new round of bidders over the next 18 months for a longer franchise to run trains from London Paddington to the west country, Wales and Oxford."

Let's see if the Department of Transport have closed this particular scam in the contract for the West Coast mainline. The fact that about ?2 bn of the money bid is due to be paid towards the end of the franchise suggests that First are setting themselves up to have the scope to do a runner if things dont work out.


http://www.guardian.co.uk/business/2011 ... hise-early

Wow, the ultimate socialist supporting the ultimate capitalist, you'll be saying you have Virgin broadband next !wink!

I live darn sarf and use Virgin when I go to Manchester. There's nothing wrong with Virgins service, they have to contend with Rail Track don't forget. Rail Track, the twatts who fail to maintain the tracks causing several fatal accidents, so any one moaning about Virgins timekeeping is talking out of the back of their heads.
As for Branson, well the way I see it is that his detractors are probably jealous of the fact that he is self made. As for Tony B Liar and cyclops Broon, forget them pair of bastards, anyone in their right mind would take advantage so don't moan when someone does.

More worrying for my friends / ex colleagues who all have jobs with Virgin. No doubt the new company will offer them new contracts at a lower wage, less perks etc etc.....

Virgin trains in Shepherds Bush no chance

Well sometimes, it's a choice between an arse and a complete arse.

Besides how can you trust a company like First with a Chief Executive called Tim O'Toole. He's obviously an ex- porn star, running a rail company he knows nowt about.

Personally I would prefer to see the government take over the West Coast line and run it, but little chance of that.

" Personally I would prefer to see the government take over the West Coast line and run it, but little chance of that."

That would be the best outcome of the lot, seeing as they managed to pump billions into bransons new bank, they probably cant afford it now.

"That would be the best outcome of the lot, seeing as they managed to pump billions into bransons new bank, they probably cant afford it now."

The coalition would never nationalise a train service such as the West Coast Line. The reason is that the Tories despise the public sector and they are continuing Thatcher's legacy in terms of selling off whatever they can get away with to the private sector. The Tories have no problem giving shed loads of money to private companies to sweeten the sale of a nationalised resource e.g. Northern ROck, but it is very unlikely that they would go the other way round.

The East Coast train group was nationalised by the Labour government in late 2009.

Whether Labour would pursue such a policy again if elected in 2015 is yet to be seen.

Arginald Valleywater wrote:

> More worrying for my friends / ex colleagues who all have jobs
> with Virgin. No doubt the new company will offer them new
> contracts at a lower wage, less perks etc etc.....

First might try but Bob Crow, Mick Whelan etc will ensure they don't loose out.

Lets hope that Crow earns his stupendous salary then.