STAGECOACH GROUP PLC 
By ?
17 January 2014
INTERCITY EAST COAST RAIL FRANCHISE
Stagecoach Group plc ("Stagecoach") is pleased to confirm that its prequalification submission for the InterCity East Coast rail franchise with its partner Virgin Group ("Virgin") has been shortlisted to receive an Invitation to Tender by the Department for Transport ("DfT").
The InterCity East Coast franchise provides frequent services connecting London with Yorkshire, the North East and Scotland. The franchise is expected to run for a period of around 8 to 9 years, with the provision for an extension of up to two years at the discretion of the DfT. An announcement about the successful bidder is expected in autumn 2014, with the contract expected to start in February 2015.
Stagecoach Group Chief Executive Martin Griffiths said: "Stagecoach and our partners Virgin have played a leading role in transforming rail travel in Britain over the past two decades. We have a strong record of introducing new trains, maximising the benefit of infrastructure improvements and attracting growing numbers of passengers to the railway.
"Customers and innovation are at the heart of our rail services. Giving business and leisure customers excellent service on our existing inter-city services on the West Coast has delivered the highest levels of passenger satisfaction of any long distance franchise operator in the country.
"InterCity East Coast is a key part of the UK's rail network and we have already started consulting with stakeholders along the route to understand their aspirations for the franchise. We believe our private sector expertise can deliver a better service to customers and an attractive deal for the taxpayer. We look forward to submitting an innovative and competitive bid in due course."
Patrick McCall, Senior Partner, Virgin Group, said: "Innovation and customer service are key in all Virgin's activities. We're excited by the opportunity to use Virgin Trains' expertise in bidding for InterCity East Coast with our partners at Stagecoach.
"With Stagecoach we have transformed the experience of travelling by train on InterCity West Coast. We have delivered fast and frequent services on state-of-the-art trains, combined with excellent customer service.
"Independent research shows that rail travellers rate customer service on the West Coast ahead of all other long-distance franchises. People are voting with their feet for the West Coast - we've doubled passenger numbers to 30m over the last eight years. We'll be working hard over the coming months to put together a bid which will deliver a flair for innovation, excellent customer service, encourage more people to choose rail and increase the value of the network to the country."
Stagecoach and Virgin have formed a new entity, Inter City Railways Limited ("ICRL"), to bid for the franchise. Stagecoach has a 90% shareholding in ICRL, with Virgin Group holding 10%.
ENDS
For further information, please contact:
Analysts
Ross Paterson, Finance Director 01738 442111
Bruce Dingwall, Group Financial Controller 01738 442111
Media
Steven Stewart, Director of Corporate Communications 01738 442111
NOTES TO EDITORS
Stagecoach Group
· Stagecoach Group is a leading international public transport group, with extensive operations in the UK, United States and Canada. The Group employs around 36,000 people, and operates bus, coach, train, and tram services.
· Stagecoach is one of the UK's biggest bus and coach operators with around 8,000 buses and coaches. Around 2.5 million passengers travel on Stagecoach's buses every day on a network stretching from south-west England to the Highlands and Islands of Scotland. The Group's business includes major city bus operations in London, Liverpool, Newcastle, Hull, Manchester, Oxford, Sheffield and Cambridge. Low-cost coach service, megabus.com, operates between around 60 towns and cities across the UK.
· Stagecoach is a major UK rail operator, running the South West Trains, Island Line and East Midlands Trains networks. It has a 49% shareholding in Virgin Rail Group, which operates the West Coast rail franchise.
· Stagecoach also operates the Supertram light rail network in Sheffield.
· In North America, Stagecoach operates around 2,600 buses and coaches in the United States and Canada. Megabus.com links around 120 key locations in North America. Stagecoach is also involved in operating commuter and transit services, contracted bus services, charters, sightseeing tours and a small number of school bus services.
Virgin Group
· Virgin is a leading international investment group and one of the world's most recognised and respected brands.
· Conceived in 1970 by Sir Richard Branson, the Virgin Group has gone on to grow successful businesses in sectors ranging from mobile telephony, travel, space, financial services, leisure, music, holidays and health & wellness.
· Virgin has created more than 400 branded companies worldwide and employs more than 60,000 people, operating in over 50 countries. Global branded revenues of £15bn ($24bn) in 2012.
This information is provided by RNS
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