Franchise bid derails National Express

Link to the article: Channel 4 News

By Faisal Islam

The government seizes back the east coast rail service from National Express, after it became clear the private company could not meet its financial obligations.

National Express had made an ambitious billion-pound bid to win the east coast line, but the recession blew a hole in its plans.

Now the company and ministers are trading insults. The former Deputy Prime Minister John Prescott says the franchise should now be left in public ownership.

The troubled rail franchise has been hit by falling passenger numbers, but ministers have refused the company's requests for its contract to be renegotiated.