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West Coast Partnership Franchise Letting Process Agreement

The franchise was created with the privatisation of British Rail and transferred to the private sector on 9 March 1997, when Virgin Trains began operations. It was to be re-leased in December 2012, with FirstGroup announced as the winner. This decision was later overturned after irregularities in the franchise leasing process were discovered. In December 2012, Virgin Trains received an extension to continue operating the franchise until November 2014, which was extended in several stages until December 2019. This highlights the limitations of our model. This is an assessment of net social benefits at the national level that is not able to assess the financial viability of individual TOC. In other words, he is unable to identify what Roger Ford of Modern Railways magazine called zombie franchises that make losses for their parent companies, even though these subsidies can improve well-being. In addition, our model is not complete. In particular, we do not directly include recent welfare losses caused by decreases in punctuality and reliability, although those caused by Hatfield are at least partially taken into account.

The InterCity West Coast franchise was replaced on December 8, 2019 by the West Coast Partnership, currently operated by Avanti West Coast. In November 2016, the government announced that the InterCity West Coast franchise would be replaced by the West Coast Partnership. Avanti West Coast launched the franchise on December 8, 2019. [48] [49] Matthew Gregory, Chief Executive Officer of FirstGroup, said: “The differences between this contract and the more traditional rail franchises were reflected in the conditions set by the DfT, which allowed us to strike the right balance between risks and opportunities for us as operators. The first phase of the West Coast Partnership allows us to achieve returns through the significant investments made in passenger services and facilities, which are protected by a much improved revenue risk-sharing mechanism. This will move to a management contract in the second phase to ensure that we can really focus on leveraging the respective skills and experience within our joint venture in order to achieve the desired benefits of the HS2 project for passengers and the country. However, this is unlikely to be the basis for Williams` review recommendations for commercial services. It is more likely that more emphasis will be placed on the joint work between Network Rail and toCs, although there is no evidence that wessex`s virtual integration has led to performance improvements. More emphasis could also be placed on strategic planning, business incentives and competition in the area of open access, while tariffs and ticketing agreements are reviewed.

Flexible risk-sharing and stress testing arrangements could be tightened based on the recently leased franchise by West Coast Partnership, and there is the possibility of negotiated, performance-based contracts (Hensher and Stanley, 2008). It seems that, given the likely outcome of the Williams Review, the music could finally stop in terms of rail franchising, or at least move at a different pace. .