Sir Richard Branson’s Virgin Group, Stagecoach and the French national rail operator have launched legal action against the UK government’s decision to bar Virgin Trains from bidding for the West Coast rail franchise. The companies, who were bidding as the West Coast Trains Partnership but were expected to operate as Virgin Trains, are also seeking a judicial review. The incumbent on the London-to-Glasgow route is Virgin Trains, which is co-owned by Virgin and Stagecoach and was hoping to renew the contract with SNCF onboard. Virgin Rail Group Holdings, Virgin and Stagecoach’s joint-venture company, will have taken more than £600m in dividends from Virgin Trains by the time the west coast route is handed to a new operator within the next 12 months. Last year, Branson successfully sued the NHS for £2m after private healthcare group Virgin Care missed out on an £82m contract to provide children’s health services across Surrey.

Source: The Guardian May 24, 2019 11:06 UTC