The DfT has announced that Stagecoach Midland Rail Limited (a subsidiary of Stagecoach Group plc) has been awarded the contract to run the new East Midlands franchise from 11th November 2007 to April 1st 2015. However , the DfT has the right to terminate the franchise after six years if the operator is failing to meet agreed performance targets.

The East Midlands franchise brings together current Midland Mainline services from London St Pancras and the eastern section of Central Trains. It will receive a subsidy in the early years of the franchise and pay a premium in the later years. Over the seven year and four month life of the franchise a premium of £133m (NPV) will be paid to the Department.

Some surprising good news including London - Corby (click on http://www.savethetrain.org.uk/forum/index.php?topic=1845.msg4628#msg4628) services from December 2008 , a new daily direct Lincoln - London service (click on http://www.savethetrain.org.uk/forum/index.php?topic=504.msg1474#msg1474) 2 trains per hour to East Midlands Parkway & Market Harborough (click on http://www.savethetrain.org.uk/forum/index.php?topic=342.msg991#msg991) and the service between Matlock and Derby will be increased to every hour and extended directly to Nottingham.

See links below.
http://www.gnn.gov.uk/environment/fullDetail.asp?ReleaseID=293825&NewsAreaID=2&NavigatedFromDepartment=False

http://www.dft.gov.uk/pgr/rail/passenger/franchises/emfranchise

http://news.bbc.co.uk/1/hi/business/6229246.stm

http://www.rmtbristol.org.uk/2007/06/another_day_another_gravy_trai.html#more

Quote :

"Stagecoach Midland Rail Limited is expected to increase unregulated fares by an average of RPI+3.4% per annum."