Content deleted Content added
Maurice Oly (talk | contribs) No edit summary Tags: Mobile edit Mobile web edit |
|||
Line 43:
==History==
===Background===
The original [[InterCity East Coast]] franchise was awarded to the [[Bermuda]]-based transport and container leasing company [[Sea Containers]], which operated it from April 1996 until April 2005 via its subsidiary [[Great North Eastern Railway]] (GNER).<ref name = "grail rail2015">{{cite magazine |url = https://www.railmagazine.com/operations/franchises/from-poisoned-chalice-to-holy-grail |title = From poisoned chalice to Holy Grail? |date = 7 January 2015 |magazine=Rail Magazine|department=Franchises}}</ref><ref>{{cite magazine |date=10 April 1996 |page=10 |issue=276 |title=Sea Containers wins East Coast Main Line franchise |magazine=[[Rail Magazine]] |location=[[Peterborough]] |publisher=[[Bauer Media Group]] |df=dmy-all}}</ref> Within only a few years, the future franchising arrangements of the East Coast route had already begun to be evaluated.<ref name = "grail rail2015"/> During March 2000, the Shadow [[Strategic Rail Authority]] announced that two companies, Sea Containers and [[Virgin Rail Group]], had been shortlisted to bid for the next franchise.<ref>{{cite web |url=http://www.investegate.co.uk/article.aspx?id=200003141002582018H |title=Six Companies Shortlisted for First Franchise Replacement Round |archiveurl=https://web.archive.org/web/20131016111542/http://www.investegate.co.uk/article.aspx?id=200003141002582018H |archivedate=16 October 2013 |website=Shadow Strategic Rail Authority |date=14 March 2000 }}</ref> During January 2002, the Strategic Rail Authority announced that the refranchising process had been scrapped, with an interim extension to GNER's contract being given as a stopgap measure.<ref>{{cite news |url=http://news.bbc.co.uk/2/hi/uk_news/1763438.stm |title=High-speed GNER trains scrapped |archiveurl=https://web.archive.org/web/20130905143450/http://news.bbc.co.uk/2/hi/uk_news/1763438.stm |archivedate=5 September 2013 |work=BBC News |date=16 January 2002 }}</ref><ref>{{cite web |url=http://www.investegate.co.uk/article.aspx?id=200201161024310510Q |title=GNER Franchise Extended to 2005 |archiveurl=https://web.archive.org/web/20160304054819/http://www.investegate.co.uk/article.aspx?id=200201161024310510Q |archivedate=4 March 2016 |website=Sea Containers Limited |date=16 January 2002 }}</ref> During October 2004, the Strategic Rail Authority issued the Invitation to Tender for the InterCity East Coast franchise to the four shortlisted bidders, [[Danske Statsbaner|Danish State Railways]]/[[DB Cargo UK|English Welsh & Scottish]], [[FirstGroup|First]], GNER and [[Virgin Rail Group]].<ref>{{cite web |url=http://homepage.ntlworld.com/martin.thorne1/RailfutureEA/snippets_142.htm |title=Rail News Snippets |work=Railwatch |publisher=[[Railfuture]] |issue=142 |date=11 October 2004 |url-status=dead |archive-url=https://web.archive.org/web/20160304092631/http://homepage.ntlworld.com/martin.thorne1/RailfutureEA/snippets_142.htm |archive-date=4 March 2016 }}</ref>
Sea Containers emerged as the victor, being awarded a new seven-year franchise by the [[Department for Transport]], commencing in May 2005, along with an option for a three-year extension dependent on performance targets being met.<ref>{{cite press release |url=http://www.investegate.co.uk/article.aspx?id=200503220700260427K |author=Strategic Rail Authority |title=Biggest Deal in European Rail History Marks East Coast Franchise Announcement |date=22 March 2005 |access-date=18 October 2012 |work=Financial Express |archive-date=4 October 2013 |archive-url=https://web.archive.org/web/20131004213238/http://www.investegate.co.uk/article.aspx?id=200503220700260427K |url-status=live}}</ref><ref>{{cite magazine |url=http://www.railwaygazette.com/news/single-view/view/gner-wins-second-franchise-term.html |title=GNER wins second franchise term |date=1 May 2005 |access-date=18 October 2012 |magazine=Railway Gazette |archive-date=4 October 2013 |archive-url=https://web.archive.org/web/20131004213205/http://www.railwaygazette.com/news/single-view/view/gner-wins-second-franchise-term.html |url-status=live}}</ref> However, the awarding was subject to criticism that, amid aggressive bidding between the competing companies, GNER had committed itself to fulfilling an overly generous arrangement that may not be financially realistic, and was accused as having overbid to secure the franchise.<ref name = "grail rail2015"/><ref>{{cite news |url=https://www.telegraph.co.uk/finance/2912584/GNERs-blockbuster-bid-clinches-East-Coast-Line.html |title=GNER's blockbuster bid clinches East Coast Line |newspaper=Daily Telegraph |first=Alistair |last=Osborne |date=23 March 2005 |access-date=18 October 2012 |location=London |archive-date=7 October 2015 |archive-url=https://web.archive.org/web/20151007022858/http://www.telegraph.co.uk/finance/2912584/GNERs-blockbuster-bid-clinches-East-Coast-Line.html |url-status=live}}</ref> During the original franchise, the company had been receiving [[subsidies]] from the British government to support its operations; however, the terms of the second franchise reversed this to have the operator making payments to the government, specifically a £1.3-billion premium which was due to the Department for Transport over a ten-year period.<ref name = "grail rail2015"/><ref>{{cite news |first=Dan |last=Milmo |title=Ex-GNER chief says high bids threaten franchises |url=https://www.theguardian.com/business/2006/sep/27/transportintheuk.travelnews |date=27 September 2006 |newspaper=The Guardian |location=London |access-date=11 December 2016 |archive-date=9 March 2016 |archive-url=https://web.archive.org/web/20160309172838/http://www.theguardian.com/business/2006/sep/27/transportintheuk.travelnews |url-status=live }}</ref><ref>{{cite news |url=https://www.telegraph.co.uk/news/1486190/GNER-pays-1.3bn-for-East-Coast-franchise.html |title=GNER pays £1.3bn for East Coast franchise |newspaper=Daily Telegraph |date=22 March 2005 |access-date=18 October 2012 |location=London |archive-date=26 October 2013 |archive-url=https://web.archive.org/web/20131026045617/http://www.telegraph.co.uk/news/1486190/GNER-pays-1.3bn-for-East-Coast-franchise.html |url-status=live}}</ref> Within two years, the company's financial difficulties had become a public concern, particularly those of its parent company.<ref>{{cite news |url=http://news.bbc.co.uk/2/hi/business/6054090.stm |title=GNER owner makes Chapter 11 move |date=16 October 2006 |access-date=18 October 2012 |work=[[BBC News]] |archive-date=5 December 2013 |archive-url=https://web.archive.org/web/20131205024236/http://news.bbc.co.uk/2/hi/business/6054090.stm |url-status=live}}</ref>
| |||