FirstGroup loses Scottish rail franchise

FirstGroup has lost out on the franchise to run most of Scotland's trains for the next decade, losing the ScotRail franchise to rail operator Abellio, the offshoot of Dutch national railways said.

FirstGroup, which was among five bidders to run the service from April 2015, said it was "disappointed" by the decision from Transport Scotland, and that its bid would have delivered "even greater levels of service and growth".

Tim O'Toole, FirstGroup's chief executive, said: "Our bid would have delivered even greater levels of service and growth, and we are disappointed we will not have the opportunity to implement the credible plans we submitted, building on our record of improvement across every measurable score, for the benefit of ScotRail's passengers and employees.

"We shall continue to operate First ScotRail until the new franchise commences on April 1, 2015."

Mr O'Toole said that today's news does not alter the Group's stated medium-term targets.

He said: "As one of the largest and most experienced rail operators we are actively participating in franchise competitions with the objective of achieving earnings on a par with the last round of franchising, with an acceptable level of risk."

Union bosses had reacted angrily to reports Abellio was to be handed the contract.

RMT general secretary Mick Cash said: "It is scandalous that just a few weeks after the referendum, and promises from all quarters that the Scottish people would have an increased say in every aspect of their lives, that the continued privatisation of Scotland's railways has been bulldozed through with the SNP colluding with the political elite in Westminster to deny the opportunity for this franchise to be brought back into public ownership.