Aberdeen-based bus and train giant FirstGroup is to run a key Scotland-England rail route for up to nine more years, so what does this mean for passengers?
And why is it getting a new deal after almost being stripped of the UK Government contract due to poor performance in 2022?
FirstGroup has a 70% stake in the West Coast Partnership (WCP), which operates the Avanti West Coast trains between Glasgow and London. Italy’s Trenitalia owns the other 30%.
Westminster shows faith in Avanti partners again following woeful 2022
On September 19 the Department for Transport (DfT) announced the award of a new national rail contract to WCP, starting on October 15. It will last for at least three years but could run until October 2032.
Millions of people travel on the Avanti services every year.
Disruptions to the services got so bad in 2022, largely due to driver shortages, that the government stepped in last October to warn the operator it must deliver “long-overdue reliability for passengers”.
WCP/Avanti was given six months to improve its performance on the network, with the then transport secretary Anne-Marie Trevelyan branding its services as “unacceptable”.
That deal was extended for another six months earlier this year, with the government acknowledging “significant” improvements, but also indicating more work was needed to restore reliability and punctuality.
In the run-up to that deal expiring on October 15, 2023, FirstGroup and Trenitalia were handed a long-term contact which will run until October 18 2026 and potentially, subject to “ongoing DfT approval”, until October 17 2032.
Performance-linked financial terms
WCP/Avanti will earn a fixed management fee of £5.1 million per annum to deliver the contract, with the opportunity to earn a variable fee of up to £15.8m a year based on a number of criteria.
Punctuality and other targets required to achieve the maximum variable fee are designed to incentivise the “highest level of performance”. Fees are also linked to milestones in the operator’s recovery programme.
Welcoming the new deal, FirstGroup chief executive Graham Sutherland said: “Our West Coast Partnership team has worked hard over recent months to deliver improvements for Avanti passengers, including an increase in the number of services in the timetable and high levels of reliability for customers.
“The new national rail contract… will allow our team to use its expertise on further improvements. These include programmes to refurbish the existing fleet and to introduce new, more environmentally friendly trains, which will encourage more passengers to return to the network and help deliver the UK’s decarbonisation agenda.”
So, what’s in store for passengers?
FirstGroup has said WCP is working through a £117m refurbishment programme for its 56-strong electric Pendolino fleet.
This is delivering a “step change in onboard customer experience”, the company added.
A marketing video highlights more luggage space, wirelss chargers, plug sockets at every seat, new LED lighting, revamped shops, water refill points and information screens.
Further improvements for customers include the introduction of a new “standard premium” travel class, a “low-cost flexible ticket” and initiatives to support customers who require additional assistance.
FirstGroup added: “As part of the new contract, WCP will continue to develop and implement initiatives to reduce its impact on the environment and, as such, Avanti has placed a £350m order for 23 brand new electric or bi-mode Hitachi trains.
“These trains will reduce our carbon footprint, and the operator will continue its work to improve air quality and increase waste recycling.”
FirstGroup reports big service improvement and happier customers
Since the introduction of Avanti’s new timetable in mid-December 2022, the operator has delivered a “significant recovery” in operational performance and customer satisfaction, FirstGroup said.
“Over the last six months, cancellations that Avanti is responsible for stabilised at below 2% of scheduled services”, the company added.
WCP also acts as the shadow operator for the UK’s HS2 high-speed rail programme.
FirstGroup’s other rail operations include the Great Western Railway and South Western Railway networks, as well as two open access passenger services – Hull Trains and Lumo, which operates between London and Edinburgh on the east coast main line.
TransPennine troubles
Earlier this year the DfT announced it would not be renewing FirstGroup’s TransPennine Express contract when it expired on May 28, because of poor performance. The network is now run by government-owned TransPennine Trains.
Rail services operated by FirstGroup and its partners notched up more than 770,000 passenger journeys a day last year across their DfT contracted operations and open access routes.
