FirstGroup has upset a rival Scottish transport giant with plans to compete with Virgin Trains on part of the east coast mainline rail route.
Aberdeen-based FirstGroup said yesterday the Office of Rail and Road (ORR) regulator had granted approval for it to launch open access services between Edinburgh and London.
The 10-year deal will allow it to operate five trains a day each way from London King’s Cross to the Scottish capital, via intermediate stations at Stevenage, Newcastle and Morpeth, from 2021.
Virgin Trains East Coast (VTEC) currently holds the franchise to run services on the route until at least March 2023.
FirstGroup said its trains would offer cheaper fares and free wi-fi, making them a better option than other rail services and air travel.
Tim O’Toole, the firm’s chief executive, added: “I’m pleased that the ORR has granted track access rights.
“This is great news for passengers as our new service will widen the choice of travel options between these cities and offer an attractive alternative to those available today.
“We will offer genuinely low fares at half the average price of today, while adding significant benefits to the UK economy.
“Our brand new trains will be cheaper than other rail services, greener than the plane, quicker than the coach and will get passengers from London to Edinburgh earlier than they can arrive today, all for an average fare of less than £25.”
But Perth-based Stagecoach Group, which owns 90% of VTEC, criticised the decision to allow FirstGroup to run competing services.
Martin Griffiths, chief executive of Stagecoach Group, said: “We do not believe the granting of these services within a franchised system and without a level playing field is in the best interests of passengers, taxpayers or communities.
“We will assess the ORR decision and implications in detail and review our options.”
Extra capacity south of Edinburgh is delivered by Network Rail ‘s electrification plan.
A FirstGroup spokesman said there was “nothing to stop a future open access proposal looking at Aberdeen services”.