Go-Ahead shock as it loses Thameslink

GO-AHEAD Group has been unceremoniously dumped as operator of the Thameslink rail network in a huge shakeup of the franchise system by the Strategic Rail Authority.

The buses and trains specialist will lose its contract a year from now after failing to get past the pre-qualifying stage for a new multi-million-pound, minimum four-year Thameslink deal.

The Strategic Rail Authority will choose from National Express, First Group, Stagecoach, a joint venture between MTR and John Laing or a bid by Danish Railways and English, Welsh and Scottish Railways.

Shares in Go-Ahead, which lost its Thames Trains franchise to First Group in 2003, tumbled 93p, or 6%, to 1372p.

Go-Ahead said it was 'surprised and disappointed' by the decision. It has also missed out on the shortlist for the Greater Western franchise out of Paddington.

The group added: 'The shortlisting process is complex and we will be seeking urgent feedback from the SRA to understand why [Go-Ahead subsidiary] Govia was not selected for either franchise.

'Thameslink's operating performance is greatly improved and the company has an exemplary safety record.'

An SRA spokesman said past performance and future plans were two key criteria when drawing up the shortlist. Go-Ahead has operated Thameslink since 1997. Today's move will leave it with Southern, the franchise that runs services out of London Victoria and London Bridge.