Virgin Trains (brand)

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Virgin Trains is a brand name that has been used by several Virgin Group railway operators.

Contents

Background

The Virgin Group first showed interest in operating rail services in 1992 when it discussed with British Rail the possibility of operating luxury trains on the East Coast Main Line from London to Edinburgh and Glasgow with four hired InterCity 225 sets. [1] Nothing came of it.

Virgin Rail Group

Virgin CrossCountry Class 221 in May 2006 Class 221 Virgin Voyager eastbound from Bristol Parkway 2006-05-03 04.jpg
Virgin CrossCountry Class 221 in May 2006

In the mid-1990s the Virgin Rail Group was formed to bid for passenger franchises as part of the privatisation of British Rail. It successfully bid to operate the CrossCountry and InterCity West Coast franchises, with Virgin CrossCountry and Virgin West Coast commencing in March 1997. [2] Initially the two franchises traded as Virgin CrossCountry and Virgin West Coast, before both were replaced by the Virgin Trains name. [3] It also bid unsuccessfully for the Thameslink, Thames Trains and West Anglia Great Northern franchises. [4] [5] [6]

Virgin Group initially held a 41% shareholding in the Virgin Rail Group with Bankers Trust, Electra Fleming, JPMorgan Chase and Texas Pacific Group holding the remaining 59%. [7] In June 1998, a 49% stake was sold to Stagecoach Group with Virgin Group increasing its shareholding to 51%. [8] [9] Stagecoach already operated the Island Line Trains and South West Trains franchises in its own right. [10] [11]

Upon being re-tendered, in November 2007 the CrossCountry franchise was taken over by Arriva CrossCountry. [12] [13] In December 2019, the West Coast franchise was taken over by Avanti West Coast after being re-tendered. [14]

Virgin Trains East Coast

Virgin Trains East Coast InterCity 225 in June 2017 Estaciones y Trenes Europa 2017 - I - 49550037852.jpg
Virgin Trains East Coast InterCity 225 in June 2017

In March 2015, Virgin Trains East Coast took over operation of the InterCity East Coast franchise from East Coast. [15] Stagecoach Group held 90% of the shares with Virgin Group the remaining 10%. Having overbid, in June 2018 the franchise was handed back to the Department for Transport with London North Eastern Railway taking over. [16]

Virgin Trains USA

Virgin Trains USA logo Virgin trains.png
Virgin Trains USA logo

In November 2018, it was announced that Virgin Group had concluded a deal with Brightline to rebrand as Virgin Trains USA. [17] However, in August 2020 Brightline sought to terminate the deal, claiming that the Virgin Trains brand was no longer of value after the loss of its InterCity West Coast franchise. [18] Virgin sued Brightline for breach of contract. [19] In October 2023 Virgin won in the High Court of Justice in London and was awarded $115 million in damages. [20] [21]

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References

  1. Virgin discussions The Railway Magazine issue 1097 September 1992 page 5
  2. Franchising starts on the final lap Railway Gazette International January 1997 page 3
  3. Virgin creates new structure to manage its two rail businesses Rail issue 305 21 May 1997 page 12
  4. Thames shortlist finalised Rail Privatisation News issue 35 25 July 1996 page 1
  5. WAGN is key to Thameslink 2000 scheme Rail Privatisation News issue 40 17 October 1996 page 5
  6. Virgin Group now sets its sights on winning West Coast franchise Rail issue 294 18 December 1996 page 7
  7. Virgin Rail cooling on float Railway Business Intelligence issue 74 19 March 1998 page 5
  8. Mystery tour for Stagecoach The Independent 27 June 1998
  9. Stagecoach takes stake in Virgin Rail Modern Railways issue 599 August 1998 page 495
  10. Stagecoach preferred for Island Line Rail Privatisation News issue 39 19 September 1996 page 1
  11. Bus firm Stagecoach is first franchisee Rail issue 269 3 January 1996 page 8
  12. Arriva takes New CrossCountry Railway Gazette International August 2007 page 465
  13. Shock as Virgin loses Cross Country to Arriva The Railway Magazine issue 1277 September 2007 page 11
  14. First Trenitalia wins West Coast Partnership Today's Railways UK issue 214 October 2019 page 9
  15. Stagecoach/Virgin bid wins East Coast franchise The Railway Magazine issue 1366 January 2015 page 6
  16. LNER Returns to the East Coast Railways Illustrated issue 185 July 2018 page 7
  17. Brightline forms a partnership with Virgin. A name change is coming soon Miami Herald 16 November 2018
  18. Brightline ends relationship with Virgin trains Tampa Bay Times 11 August 2020
  19. Virgin sues Brightline for $US 251.3m over naming contract International Railway Journal 9 March 2021
  20. Virgin Group wins lawsuit against Brightline in British court Trains 12 October 2023
  21. Virgin Enterprises Limited vs Brightline Holdings High Court of Justice 12 October 2023