Mar 16, 2025, 12:01 AM
Mar 16, 2025, 12:01 AM

Virgin's Branson fights for open access train services in UK

Highlights
  • Virgin Group, led by Richard Branson, is challenging a decision by Network Rail that impacts its plans for open access services.
  • The appeal follows Virgin's loss of its franchise to Avanti in 2019 and aims to highlight unused capacity on the west coast main line.
  • Branson's effort reflects a larger trend towards promoting competition in the rail market, which is seen as beneficial for consumers.
Story

In the United Kingdom, on March 16, 2025, Richard Branson's Virgin Group announced its intention to appeal to the Office of Rail and Road (ORR) regarding a decision by Network Rail that threatens its plans to resume operating train services. Virgin's ambition focuses on providing open access services on the west coast main line, which has been a crucial route for the company historically. The appeal comes after Virgin lost its franchise to operate these services in 2019 due to a non-compliant bid against Avanti. The franchise change sparked Branson's desire to return to the UK train network and fulfill the growing demand for expanded rail services. Virgin Group aims to enhance competition within the UK rail market, advocating for open access operators who offer services based on demand rather than government-controlled timetables. Transport Secretary Heidi Alexander has highlighted concerns surrounding the impact of new services on network capacity and public investment, emphasizing the need for careful scrutiny of new operators. Despite this regulatory obstacle, Virgin believes that there is unused capacity along the west coast main line and is mounting a case to challenge the decisions made by Network Rail regarding access rights for operators. Branson's strategy involves not only reviving its operations on the west coast main line but also launching a rival service to Eurostar, providing train links from London St Pancras through the Channel Tunnel to Europe. To support this initiative, Virgin has secured the services of investment bankers Perella Weinberg to raise £700 million. The start date for domestic services was initially planned for December 2025, but it has faced delays due to the ongoing regulatory process and growing scrutiny of open access operations. In addition, Virgin has cited research indicating that British consumers largely support increased competition in the railway sector. The company asserts that open access services can work alongside nationalised operators, ultimately benefiting customers and taxpayers by providing value for money and enhancing overall growth in rail travel. Virgin has taken particular care in crafting its application for open-access services, emphasizing the potential for generating revenue and restoring profitability for train routes.

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