Preparations are being made for the government to take over the West Coast mainline franchise from Avanti unless it delivers “significant” improvements a minister said today.
However, he said he expects the situation to improve and a "significant step up" in the number of services running on the line by the end of the year.
It comes as a number of MPs slammed the government for 'rewarding failure' by granting the belegeaured firm an extension to its contract.
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Avanti was earlier this month given until April 1 next year to improve its services after coming under fire for slashing the number of services it runs due to a shortage of drivers.
Today (Tuesday). Transport minister Kevin Foster said the extension provides a “clear opportunity” for Avanti to improve its services to the “standard we and the public expect”.
But Mr Foster also signalled that the Government could take over Avanti’s network, which includes services between Manchester Piccadilly and London, via its Operator of Last Resort.
The in-house body currently manages other services, including Northern and London North Eastern Railway.
Mr Foster said during the company's 'probation period' that the government would "consider Avanti’s performance while finalising a national rail contract for consideration in relation to the route alongside preparations by the Operator of Last Resort for if it becomes necessary for them to step in at the end of the extension period.”
Outlining the issues experienced by the company over the past few months he said: "The primary cause of its recent problems has been a shortage of fully trained drivers.
"It was heavily reliant on drivers volunteering to work additional days because of delays in training during Covid. When volunteering suddenly all but ceased Avanti was no longer able to operate its timetable."
However, he said almost 100 new drivers will have entered service between April and December this year.
"Avanti has also begun to restore services, initially focusing on the Manchester and Birmingham routes," he said. "From December, Avanti plans to operate 264 daily train services on weekdays – a significant step up from the circa 180 daily train services at present.
“We need train services that are reliable and resilient to modern-day life. While the company has taken positive steps to get more trains moving, it must do more to deliver certainty of service to its passengers.
“We will hold Avanti fully to account for things in its control; however, this plan is not without risk and importantly requires trade union co-operation. The priority remains to support the restoration of services before making any long-term decision.
“In assessing options for a longer-term contract, the Secretary of State will consider factors including outcomes for passengers, value for money, and the delivery of major projects and investments – in this case HS2, given the links they have with that future delivery model.
“But, to put things simply, things must improve during this probation period for this contract to be further extended.”
Labour MP for Lancaster and Fleetwood Cat Smith, who secured an urgent question on the issue in the House of Commons said the firm had cut services and "almost entirely stopped selling tickets online."
She asked: “When will this Government stop rewarding Avanti for failure and instead strip it of its franchise and bring the West Coast Main Line back into public ownership?”
Mr. Foster, in his reply, said: “We are clear the current service is unacceptable and we will look for significant improvements before April if we’re to look to extend this contract any further.”
Denton and Reddish MP Andrew Gwynne accused Mr Foster of "defending the indefensible" and said that "Avanti failing is nothing new." "They have failed virtually since day one when they took over the contract from Virgin," he said as he raised issues with the online booking of tickets.
Blackley and Broughton MP Graham Stringer said Avanti had reached the "pinnacle of incompetence in the rail industry" and that they had done it by "cutting costs and putting profit before service and people" as he said, "I don't want to see them continue."
Trains were removed from the timetable in August to cut short-notice cancellations after a sharp decline in the number of drivers voluntarily working on rest days for extra pay.
“Scotland and the North of England have been treated as third-class citizens," SNP transport spokesman Gavin Newlands said:
Mr Foster also told MPs: “The idea that just putting it into the OLR (operator of last resort) would immediately resolve a driver shortage and other issues is, I’m afraid, not one that really stands up to any scrutiny.”
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