Stagecoach agrees to short-term rail franchise with UK government

Train and bus company Stagecoach Group confirmed that subsidiary East Midlands Trains had agreed a new short-term rail franchise with the UK's Department for Transport.

The new franchise would commence on 3 March and run until at least 18 August.

The department had the discretion to extend the franchise by up to 24 weeks.

Stagecoach said customers and communities would continue to benefit from a range of improvements under the agreement including the delivery of a £1.5bn line upgrade.

Revenue risk would sit primarily with the Department for Transport, Stagecoach said.

'East Midlands Trains expects to earn a modest profit under the contract and a profit sharing arrangement with the department will apply,' it added.