Richard Branson’s ambitious plan to resurrect Virgin trains on UK railways has hit a major stumbling block after the rail regulator delivered a damning verdict.
The Office of Rail and Road (ORR) announced on Thursday that it had turned down applications from Virgin Management and two other operators seeking track access rights to run services on the West Coast Main Line, as reported by City AM.
The regulator determined there is “insufficient capacity” on the southern stretch of the West Coast route for the proposed services and that introducing them would prove “detrimental” for passengers.
The other two firms competing for a share of the lucrative route are East Coast Trains, which operates under the Lumo brand, and the Wrexham, Shropshire and Midlands Railway Company.
“After thorough assessment of each application, it was clear that there was insufficient capacity to approve any of the services without a serious negative impact on the level of train performance that passengers experience on the West Coast Main Line,” said Stephanie Tobyn from the ORR.
Virgin Management had hoped to launch open-access services running from London Euston to key destinations including Liverpool, Birmingham and Glasgow.
The open-access model allows operators to take on full commercial risk in return for potentially higher returns, but this approach has been sidelined by the current Labour government as it moves to bring Britain’s railway network back under public control.
Not enough space for Branson
Tobyn stated: “We recognise the potential advantages of competition on the West Coast Main Line, which is why we approved in 2024 the new London-Stirling services that First Group are due to start operating in 2026.”
“However, it is clear that the southern end of the route requires space in the timetable to provide resilience. Additional services within the current timetable structure and planned capacity use would further weaken punctuality and reliability, not just at the south end of the WCML but elsewhere as well.”
Virgin Trains, owned by Branson, ceased operations on the West Coast route from London to Glasgow in 2019, following a drawn-out dispute with the Department for Transport (DfT) that resulted in its bid being rejected.
The news of the billionaire’s possible comeback to the UK rail sector has ignited hopes of improved performance at Avanti, the company currently running the West Coast Main Line, which has been heavily criticised.
Virgin is also among several operators aiming to challenge Eurostar’s dominance over cross-channel services.
A spokesperson for Virgin Group remarked: “Virgin’s proposed services on the West Coast mainline would have delivered excellent value for customers and taxpayers alike by adding five million additional seats every year from a trusted brand with a track-record for delivering award-winning, reliable train services for its customers.”
“Today’s decision is a blow for consumer choice and competition. We still believe, that given the opportunity, Virgin’s Open Access routes could play a valuable role in delivering the high-quality train services the British public deserve and GBR wants to encourage.”
“Virgin Trains took the West Coast mainline from eight million to 42m passengers per year, all while increasing innovation, topping customer satisfaction surveys and trebling services.”
“Anyone who remembers British Rail would rather forget it. Competition improves services, increases rail ridership, and drives better results for everyone, including the taxpayer.”
“For now, Virgin is focused on bringing much-needed competition to the cross-Channel route by igniting a new era in international rail services for travellers on both sides of the Channel.”
