FirstGroup PLC
21 March 2001
For immediate release
21 March 2001
FIRSTGROUP PLC
AMENDMENT OF FIRST NORTH WESTERN FRANCHISE
FirstGroup plc has today agreed terms with the Strategic Rail Authority (SRA)
for the amendment of its First North Western franchise. Under proposals
announced by the SRA last year, First North Western's services are to be
re-allocated to the new TransPennine Express, Wales and Borders and Northern
train franchises in due course when these are awarded. This agreement will
facilitate the refranchising process.
Under the terms of the agreement, First North Western will pay the SRA £37
million on
2 April 2001 in consideration of the franchise amendment. This amount will be
included in exceptional charges in FirstGroup's accounts for the year ending
31 March 2001. From 1 April 2001 First North Western will continue to run the
franchise on behalf of the SRA pending the award of new franchises for the
region.
Commenting on the agreement, Moir Lockhead, Group Chief Executive, said: 'This
is an important step for FirstGroup and the SRA in the establishment of new
and improved rail services in the North of England and Wales. The amendment to
the franchise will improve the quality of FirstGroup's earnings and enable us
to develop our proposals for new railway franchises in the region, where we
are currently shortlisted for the TransPennine Express franchise (in
co-operation with Via GTI) and the Wales and Borders franchise. In addition
the Group is shortlisted for the South West trains franchise and is bidding
for the Thameslink 2000 franchise. We look forward to working with the SRA in
the refranchising process.'
FirstGroup contacts:
Moir Lockhead, Group Chief Executive Tel: 01224 650102
Iain Lanaghan, Group Finance Director Tel: 020 7291 0510
Michael Mitchell, Corporate Communications Director Tel: 020 7291 0508
Notes to Editors:
FirstGroup acquired the loss making North Western Trains franchise as part of
the acquisition of Great Western Holdings in March 1998. Since then operating
performance has been significantly improved and new investment of some £90
million has been secured including 70 new vehicles and associated
infrastructure improvements. The SRA has announced proposals to create new
train operating companies for TransPennine Express, Wales and the Borders and
the North of England which will take over the routes currently operated by
North Western Trains.
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