National Express wins right to keep c2c rail line
A year after the Labour government sacked National Express from running one of Britain's biggest train franchises, the bus and rail group today proved how successful it has been at wooing the Coalition.
The Department for Transport awarded National Express a two-year extension to run its c2c commuter line between Fenchurch Street and Essex, which was due to expire next year.
When NatEx defaulted on its payments for the East Coast Main Line franchise from King's Cross last year, Gordon Brown's Transport Secretary Lord Adonis furiously said he was considering terminating its other rail franchises, c2c and the East Anglia route into Liverpool Street.
Adonis said: "It is simply unacceptable to reap the benefits of contracts when times are good, only to walk away from them when times become more challenging."
He then denied the firm the opportunity to extend its East Anglia franchise.
Transport minister Theresa Villiers reversed that earlier this year, granting NatEx a seven-month extension, and analysts today hailed the latest move as "symbolically important".
Paul Hickman at Peel Hunt said: "The two-year extension to the c2c contract marks a continuing thaw in relations with government, and suggests that it may be realistic to see National Express with a serious future in UK rail."
