The three-year extension will see a £13m investment in improved services, including £8m from the rail operator
Passengers travelling between London and the East Midlands should soon the see the benefit of a £13m investment in the line, as rail operator Stagecoach extended its control of the franchise until 2018.
Under the terms of the deal with the Department for Transport, Stagecoach’s subsidiary East Midlands Trains will put £8m into improving stations and on-board services, as well as launching a mobile app for customers to buy tickets.
Stagecoach Group will pay the Government £150m to run the franchise from October 2015 to March 2018, with the possibility of a one-year extension.
East Midlands Trains connects London to Leicester, Nottingham, Derby and Sheffield. It was formed in 2007 when the current franchise began. Other improvements under the new deal include a freeze on all Anytime fares to London until 2017; extra services between Nottingham and Newark Castle; more automatic ticket machines; and a £1m investment in accessibility at stations.
“This is a significant package of investment for customers travelling on East Midlands Trains, Britain's most punctual long-distance train operator,” said Martin Griffiths, Stagecoach Group chief executive. “It will build on what our team has achieved over the past eight years and deliver further valuable improvements for the millions of passengers and many communities who rely on the East Midlands Trains network.”
Rail minister Claire Perry said: "This is a great deal for East Midlands Trains customers, and will mean significantly better journeys for passengers travelling around the region.
"This is another example of the work we're doing to transform the UK's railways as part of our long-term economic plan, with more than £38bn being spent on the network between 2014 and 2019."
Stagecoach Group said the new East Midlands agreement would not affect its profits expectations for the year.
In July the FTSE 250 company warned it might lose the South West Trains franchise, which it has operated for almost 20 years. The group also shares the East Coast rail franchise with Virgin Trains, while its extensive bus operations include the Megabus and Stagecoach brands, as well as intercity and commuter bus services in North America.
Pre-tax profits at Stagecoach grew 4.5pc to £165.2m in the year to April 30, while revenues climbed 9pc to £3.2bn.
Source: Telegraph