The Department for Transport has undermined FirstGroup chief executive Moir Lockhead's ambition to create a UK-wide rail network by dropping First from a list of bidders for the £300m Cross Country franchise , industry sources claim (link below.)
http://www.rmtbristol.org.uk/2007/05/firstgroups_cross_country_fran.html#moreArriva , Virgin and National Express have all confirmed that they are still in the running to manage the 20-million passenger franchise , but First have refused to comment. The Department for Transport is expected to select a winner this summer.
Last year , First became the UK's biggest railway operator , but its franchises , including ScotRail , Hull Trains and Great Western , are spread throughout the UK with few connections. Winning the Cross Country franchise would link up these disparate routes.
First is still in the running to win the flagship East Coast main line franchise between London and Scotland , and the East Midlands routes from London to Nottingham and Sheffield.
Its not all bad news for First though.
Cazenove analyst Nick Edelman predicts the group will reveal adjusted pre-tax profits of £161.5m , up by 9% on last year , thanks to more ticket barriers at railway stations and better management of its bus divisions. Restructuring the rail division , including the closure of the head office of the former Thameslink commuter service which First acquired , is thought to have cost around £20m.
Edelman said: "The performance in UK rail has been excellent, with each business outperforming, driven by both volume and fares."
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