Firstgroup set to bag extension to Great Western deal

10th Oct 2014 12:48

Train and bus operator Firstgroup is poised to win an uncontested three-and-a-half year extension of its First Great Western franchise, it said on Friday.The Department for Transport (DfT) plans to negotiate a "direct award" for the franchise, which runs trains between London Paddington, the Thames Valley, Wales and the south-west, until March 2019, with a possible extra year, Firstgroup said.The DfT has decided against a full re-tendering of the franchise in the short-term to ensure stability while the Great Western main line is electrified and new high-speed trains are introduced.Firstgroup chief executive Tim O'Toole said the direct award was still subject to negotiation but added: "We are very pleased that, after a consultation process in which the DfT sought the views of stakeholders and user groups across the line of route, the DfT intend to negotiate a direct award with us."The announcement is likely to be seen as a welcome piece of good news for Firstgroup, which has failed in attempts to keep its FirstCapitalConnect and Scotrail franchises.Firstgroup shares rose 3p or 2.77% to 111.3p at 13:07 in London.