Crisis hits east coast rail deal.

THE Government yesterday scrapped the franchise deal for the Scotland to London east coast rail route because of the financial crisis engulfing the parent firm of operator GNER.

Services will carry on under a deal struck between the Department of Transport and GNER.

GNER will run the line on behalf of the department for the next 12 to 18 months while a competition to find new operators takes place.

The firm could still bid for the new franchise but will face strong competition from transport giants such as FirstGroup.

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Publication:	Daily Record (Glasgow, Scotland)
Date:	Dec 16, 2006
Words:	89
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Topics:	Railroads