FirstGroup loses ScotRail franchise

 

The new 10-year franchise is set to come in at the start of April next year

FirstGroup has confirmed it has lost the franchise to operate ScotRail services from the spring of 2015.

An official announcement will be made on Wednesday by Transport Minister Keith Brown.
It is understood that the Dutch rail operator Abellio has won the £2.5bn franchise to run services for 10 years.
ScotRail said it was disappointed FirstGroup's bid had not succeeded and it would work with the new franchisee to ensure a smooth transition.
It has already been announced that FirstGroup, based in Aberdeen, is to lose the franchise to run Caledonian Sleeper services.
'Credible plans' The company has been operating ScotRail services since August 2004.
In a statement, FirstGroup chief executive Tim O'Toole said the firm was "very proud" of its success in operating First ScotRail.
He added: "We have kept our promises and more for 10 years, delivering record levels of service including during this extraordinary summer in Scotland with the Commonwealth Games and the Ryder Cup.
"Our bid would have delivered even greater levels of service and growth, and we are disappointed we will not have the opportunity to implement the credible plans we submitted, building on our record of improvement across every measurable score, for the benefit of ScotRail's passengers and employees."
The firm said it was still in with the Department for Transport (DfT) over the First TransPennine Express and First Great Western franchises.
ScotRail employs almost 5,000 staff and operates 2,400 train services every weekday. The current franchise arrangements end on 31 March 2015. The new franchise will be for a term of up to 10 years.
Union anger FirstGroup had been competing against Abellio, Arriva, MTR, and National Express for the right to operate the service.
Union bosses reacted angrily to reports Abellio was to be handed the contract.
RMT general secretary Mick Cash told BBC Radio Scotland's Good Morning Scotland programme: "We believe public ownership is better, is more efficient and it's safer and it gives you great accountability.
"All you're seeing in private ownership is that money's being sucked out of the industry and given to the private sector shareholders, or in this case is going to go to subsidise the Dutch railways."
Manuel Cortes, leader of the TSSA rail union, described the the possibility of an Abellio franchise as "a slap in the face for Scots rail passengers".
He said: "Only a few weeks ago, the Scottish people were promised the power to run a publicly owned railway which would put them first, ahead of private rail firms.
"Now the Scottish government wants to hand that railway to a firm run by Dutch state railways."