First Trenitalia Franchise Agreement

The final award is subject to the legal status quo period. Initially, from December 8, Trenitalia would succeed Virgin and Stagecoach`s Virgin Rail Group as operator of InterCity`s West Coast franchise and also act as “shadow operator” during the development of HS2. The deal replaces the old West Coast Rail Direct Award 2018 franchise agreement, which expired on December 8, 2019. Sir Richard Branson, CEO of Virgin Group, said he was “devastated” for “members of our Virgin family who have worked tirelessly to become the best customer franchise in the UK. We have been in charge of the sector for more than 20 years and have almost tripled the number of passengers, from 14 million in 1997 to over 40 million. Our employees have been showing the rest of the industry for over 20 years how to do it, and we wanted this to continue for many years to come. United Kingdom: The Department of Transport`s disqualification of non-compliant offers for east Midlands, South Eastern and West Coast Partnership franchises was legal, Justice Stuart-Smith said at sentencing in the High Court on June 17. In April 2019, the then Secretary of State was appointed… “If we had these mechanisms with TransPennine Express and SWR, we would not have had to adopt binding regulations. We have stated publicly that the balance between risk and reward must be correct, and we believe that this franchise gives us that opportunity. We will re-educate the contract in 2026, and if HS2 arrives too late, the government will have the opportunity to extend the period and rese with the limited revenues and costs on that date. Montgomery explained that “the forecast income mechanism means that if income does not work as it should, there is some protection, and if it is transferred, then there is some form of reward to the government. It`s not “Cape-Col,” but it`s the kind of idea we`re used to in previous franchises.

There is also the protection of GDP and that is why we believe that the risk and reward of this deductible are more balanced. It`s good news that this franchise contest has succeeded. The time for a radical competition on the west coast is according to HS2. In the meantime, there will be a competent operator who will implement a very credible offer. Keep dreaming when you think nationalization is coming, Micky Cash. First, First Trenitalia will provide premiums with a net worth of $1.6 billion. Initially, Trenitalia will directly finance $11 million in residual assets and premium deductions will finance $252 million of the operator`s investments. An additional $453 million for new and refurbished trains will be funded by rail vehicle leasing companies.

As with other franchise premiums, the Competition Authority will conduct a “Phase 1 review” of the market`s impact on competition. United Kingdom: FirstGroup consortium (70%) and Trenitalia (30%) was selected for the West Coast Partnership franchise to operate long distance services on the West Coast Main Line and the first phase of High Speed 2, as announced by the Department of Transportation on August 14. United Kingdom: Avanti West Coast was officially unveiled on November 27 as a brand name for the new West Coast Partnership franchise. The partners of the FirstGroup joint venture and the Italian national operator Trenitalia said: “Avanti is Italian for “Forward!” and reflects the mission of … In order to avoid the financial problems that affect several other franchised companies, DfT will put in place a forecasting/revenue mechanism, supported by an annual review “to ensure an effective, collaborative and continuous improvement of the partnership.” As a first step, Trenitalia will work closely with Network Rail under an alliance agreement implementing the December 2022 timetable, including a $32 million investment in “the development and provision of infrastructure and capacity-enhancing capabilities.”

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