New blow for National Express as it loses second rail franchise

National Express has received a second body blow, with the loss of its lucrative train franchise out of Liverpool Street to Essex and East Anglia.

Already sacked from the East Coast Main Line franchise out of King's Cross, the company will now lose the East Anglian franchise in 2011, three years ahead of signalled.

In the summer National Express defaulted on contractual payments for the King's Cross franchise.

The Department for Transport (DfT) threatened it would strip it of two other franchises, the Liverpool Street services and the c2c line out of Fenchurch Street to south Essex.

National Express said this was illegal, but rather take on a court battle the DfT has removed it from Liverpool Street at the earliest opportunity.

National Express is planning a £360 million rescue rights issue, but deputy chairman Jorge Cosmen is using his family's near-20% stake in the company to lead a revolt against the move.