FirstGroup's Thameslink deal curtailed

FirstGroup woke up to mixed news from the Government today as Transport Secretary Philip Hammond set out his franchising timetable.

First will see its Thameslink franchise end 18 months earlier than expected, with a replacement contract in place from September 2013 so one operator covers the next stage of the line's major investment programme. But the transport giant also won an extension on its TransPennine route. The franchise, which it operates with France's Keolis, was initially awarded in 2004 for eight years, with a five-year extension. It will now run until April 2015.

Hammond wants train companies to have longer franchise agreements to encourage investment. FirstGroup is expected to bid for the new Thameslink contract.