STAGECOACH GROUP PLC 02 Mar 2015
- Customers and communities can bid for share of £3m
- Fund is in addition to £140m of investments already committed
- Additional catering commitments with new menus
- Virgin Trains East Coast begins full operations on new eight-year franchise
Customers and communities along the new Virgin Trains East Coast network will be able to bid for a share of a £3m innovation fund. The fund will be used for projects suggested directly by Virgin Trains East Coast customers and their communities. The money is in addition to the £140m already committed to the franchise by the Stagecoach / Virgin partnership.
Twice-yearly stakeholder summits will be held along the network to discuss the ideas put forward, before the best ideas are given to the Secretary of State for approval.
The scheme will see £500,000 available each year of the new franchise from 2017. Virgin Trains East Coast will use the time before then to set up the customer feedback mechanisms and begin gathering ideas for the first set of awards.
Claire Perry, Transport Minister, said: "Today is the start of a new chapter for the East Coast franchise. Passengers will benefit from thousands of extra seats, new connections and improved services between London and Scotland. The deal also means more than £3bn will be returned to taxpayers.
"We are investing record amounts in building a world-class railway as part of our long-term economic plan."
Virgin Trains East Coast is also planning to bring back freshly cooked breakfasts for all its First Class customers as part of a series of catering improvements planned over the next two years. There will also be new menus designed by regional chefs, and customers will be asked personally for their feedback and suggestions.
David Horne, Managing Director of Virgin Trains East Coast added, "Passengers using the East Coast mainline are already set to benefit from hundreds of millions of pounds of infrastructure investment and service improvements over the next decade. Our new 'Customer and Communities Improvement Fund' builds on that but puts the decision-making power firmly in the hands of the customers and communities we serve.
"The £3m fund allows Virgin Trains East Coast passengers to shape the future of their train line like never before. We will listen to what they want as we build our customer offering around our passengers. Asking the communities along the route what they want will also complement the major programmes we are committed to around helping young people and small businesses along one of Britain's most important train lines."
The announcement of the 'Customer and Communities Improvement Fund' comes as Virgin Trains East Coast begins full operations on the line between London King's Cross and Edinburgh. The franchise was awarded in November last year and runs until the end of March 2023, with the option for a one year extension at the DfT's discretion.
The new franchise builds on the successful partnership Stagecoach Group and Virgin have formed in running the West Coast mainline since 1997, and will bring major benefits to passengers, taxpayers and employees. East Coast Main Line Company Limited: Registered in England No. 04659708 Registered Offi ce: Friars Bridge Court, 41- 45 Blackfriars Road, London SE1 8NZ Passengers can look forward to new services, faster and more frequent journeys whilst taxpayers will benefit from significant increases in premium payments to Government over the course of the eight year franchise.
The group's venture will transform the customer experience for around 20 million journeys a year on one of the UK's major inter-city rail routes, blending the experience, culture and service-focus of both Stagecoach and Virgin.
Highlights for customers include:
- £140m investment to deliver an improved service and more personalised travel, including a £21m refresh of the existing fleet
- £3.3bn* paid in premium payments to the Government between 2015 and 2023, providing a higher return to the taxpayer than under the old franchise
- Faster journey times - regular services to Leeds in two hours and Edinburgh in four hours
- New trains - 65 new 'Super Express' trains from 2018 with an early multi-million-pound train refresh programme for existing fleet
- Better connections - extra and new direct services to London from key locations in Scotland and England and more weekend services
- More services - a 50% increase in capacity by 2020 with total fleet capacity increased by 12,200 seats
- Better value fares - 10% cut in Standard Anytime fares on long-distance journeys to and from London and Stevenage in May 2015
- Investment in people - a fresh approach to recruitment, including new apprenticeships and the introduction of a new National Academy for Rail Professional Education with bases in York, Derby and London. Major investment in staff development and training, a new innovation council and giving employees ways to own a share of the business through employee share incentive arrangements
- New technology - new website, smartphone apps, interactive touchscreen information points at major stations, portable technology for staff, and improved Wi-Fi.
- Personalised travel - journeys built around individual customers, with at-seat food ordering, simpler ticket purchase and reservations, new Nectar loyalty programme
- Improved customer rights and support - new Passengers' Charter with a commitment to improved satisfaction scores with new independent passenger surveys, benchmarks and published results to drive satisfaction with stations, trains and customer service and a dedicated 'Customer and Communities Improvement Fund'
- Station enhancements - investment of over £25m in stations and car parks with new open plan customer zones introduced for combined ticket purchase and information, more car parking spaces, extra cycle facilities and improved security
- Improved accessibility - investment in disability improvements, including induction loop and tactile station maps
- Community engagement - apprenticeships for young people, graduate and ex-offenders programmes, support for small businesses and regeneration in disadvantaged areas.
Patrick McCall, Senior Partner, Virgin Group, said, "Our long term partnership with Stagecoach has seen a revolution in customer service standards, great product innovation, reduced journey times and improved timetables on the West Coast mainline. We will deliver similar success on the East Coast and will work with the existing teams there to build on their achievements.
"Our partnership will concentrate on areas for which Virgin is famous, such as looking after our customers and our people. We have a great opportunity to blend the successes of the East Coast and the West Coast lines to create a great experience for all. Together with these new ideas and initiatives, passengers will begin to see those Virgin touches on each and every journey."
Ends
Contact the Virgin Trains East Coast Press Office:
0116 366 3988 during office hours (09.00 - 17.30 Mon-Fri). Outside these times, and for urgent media enquiries only, please call 08700 005151 and ask for the duty Virgin Trains East Coast press officer to be paged.
Notes to Editors
*The committed premium payments of £3.3bn represent the forecast premium payments over the core franchise period to 31 March 2023 in nominal terms. Actual premium payments are subject to change in accordance with the contractual arrangements.
Detailed plans to transform services for East Coast passengers include:
New, improved trains and enhanced on board service
- 65 new Super Express trains introduced from 2018 delivering a new standard of on-train service with improved Wi-Fi and at seat meals available in both First and Standard classes.
- £21m planned spend in the first two years of the franchise to improve the existing train fleet. An initial deep clean of the entire fleet, with refurbished toilets, new carpets and seat covers, new and clearer on-train signage, plus other enhancements.
- Faster, more reliable on-board Wi-Fi and better mobile phone connections
- More flexible reservation system allowing reservations to be made closer to departure to better suit customers who make last minute travel arrangements
- Innovative new mobile app that allows customers to order a meal at their seat before or during their journey
- Improved on-board service with additional presence in standard class and train-side to deliver a personalised and highly visible service.
- New, improved on-train catering designed by local chefs with menu changed regularly to include seasonal events. Bean to cup coffee introduced and passengers able to claim Nectar points on all Foodbar purchases
Better journeys, extra services and improved punctuality
- Additional and new direct services to London from Sunderland and Stirling within first year of new franchise (December 2015)
- Extra weekday services between Edinburgh and London from May 2016 with half-hourly frequency for most of the day and an additional Sunday service
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Vastly improved timetable introduced from May 2019 featuring faster services, new direct services and improved weekend services:
- Regular weekday services between Edinburgh and London in just 4 hours, calling only at Newcastle, a journey time improvement of around 20 minutes compared with most of the fastest trains today
- Additional and faster services between Leeds and London, many with a journey time under or close to 2 hours, a journey time improvement of over 10 minutes compared with today
- New direct weekday services between Middlesbrough and London for the first time in a generation
- Two-hourly direct weekday services between Bradford, Harrogate, Lincoln and London
- New direct weekday peak-time services between Huddersfield and London
- Improved Saturday and Sunday timetables, with more trains and faster services between Leeds and London, faster journey times between Edinburgh, Newcastle and London, a two-hourly direct service between Harrogate and London, and a two-hourly direct service between Lincoln and London
- More reliable trains, using our experience from East Midlands Trains, the UK's most reliable long distance train operator
- New integrated control centre launched with Network Rail to drive up performance
Station enhancements
Over £25m is set to be invested in station and car parking improvements to transform the end to end journey experience and provide a welcoming, modern and personalised service for customers:
- Increased staff visibility in new customer friendly open plan areas for combined ticket purchase, information and assistance.
- Free Wi-Fi introduced at all Virgin Trains East Coast stations
- Investment in better station retail and waiting facilities
- 50% increase in station cycling storage with three new secure cycle compounds and Brompton Dock Cycle Hire facilities
- Upgrade of First Class lounges and the introduction of a new scheme allowing local businesses and community groups to use selected lounges free of charge during the evenings
- First Lounge Hosts provided in the lounges at King's Cross, Leeds, Edinburgh and Newcastle stations to provide a better level of service for customers
Accessibility, improved transport integration and sustainability measures
- Investment in station accessibility improvements including induction loops, improved seating, handrails and tactile station maps
- Introduction of a car-club and station car-sharing schemes with dedicated websites
- Targeted 20% reduction in passenger and vehicle CO2 emissions and 22% reduction in water consumption
- Installation of new energy efficient lighting at stations and in car parks
- Carbon reduction plan with introduction of an eco-driving system, and improved metering and monitoring
Fares and ticketing
- Standard Anytime fares on long-distance journeys to and from London and Stevenage reduced by 10% from May 2015
- New booking tool launched to make it easier for customers to book the best value tickets and find the perfect seat to meet their needs
- New partnership with Nectar, the UK's leading coalition loyalty scheme, allowing customers to collect points and also redeem them against their travel with VTEC, a rail industry first
Investment in people
- Major investment in developing people skills and a commitment to achieving Investors in People Gold status.
- New 'Ideal Customer Experience' development programme that will build on the great skills employees already have and help drive customer service to new highs
- Introducing a new [National Academy for Rail Professional Education with bases in York, Derby and London
- Industry leading package of rewards and benefits introduced for staff to improve life-style, health and well-being
- New Innovation Council launched with a dedicated budget, with representation from front-line staff to evaluate, prioritise and develop ideas
- A reinvigorated recognition programme that rewards people who go out of their way to help their customers
- 'Red Track' Graduate Training Programme
Customer service initiatives and improvements
- A new customer service strategy has been created to completely transform the passenger experience and is focussed on understanding the needs and wants of customers.
- A new Passengers' Charter with a commitment to improved satisfaction scores with new independent passenger surveys, benchmarks and published results to drive satisfaction with stations, trains and customer service and a dedicated 'Customer and Communities Improvement Fund'.
- Dedicated Customer Experience Board with £1m annual budget to invest in customer service initiatives.
- Introduction of 30 dual role Security and Revenue Officers who are also attested as special constables to provide safer travel for customers
- Red Report' will provide customers with an update on progress in delivering service improvements and report on delivery against performance and quality measures
Customer information
- A new website and app offering real-time personalised travel information
Community engagement and stakeholder relations
- New apprenticeship schemes launched in partnership with local authorities targeting 16-24 year olds
- New schools partnership to provide opportunities for young people and an extended range of traineeships for 16-17 year olds.
- Job trials scheme offering opportunity for young and unemployed people on the East Coast route with a guaranteed job interview at the end
- Unique partnership with Bad Boys Bakery to support ex offenders and prevent re-offending by getting people into good jobs.
- New 'Customer and Communities Improvement Fund' to provide opportunities for commercial, local community and meeting spaces at stations
Stagecoach Group
- Stagecoach Group is a leading international public transport group, with extensive operations in the UK, continental Europe, the United States and Canada. The Group employs around 35,000 people, and operates bus, coach, train, and tram services.
- Stagecoach is one of the UK's biggest bus and coach operators with around 8,300 buses and coaches. Around 2.8 million passenger journeys are made on Stagecoach's buses every day on a network stretching from south-west England to the Highlands and Islands of Scotland. The Group's business includes major city bus operations in London, Liverpool, Newcastle, Hull, Manchester, Oxford, Sheffield and Cambridge. Low-cost coach service, megabus.com, operates a network of inter-city services across the UK and continental Europe.
- Stagecoach is a major UK rail operator, running the South West Trains, Island Line and East Midlands Trains networks. It has a 90% share of Virgin Trains East Coast and a 49% shareholding in Virgin Rail Group, which operates the West Coast rail franchise.
- Stagecoach also operates the Supertram light rail network in Sheffield.
- In North America, Stagecoach operates around 2,400 buses and coaches in the United States and Canada. Megabus.com links around 130 key locations in North America. Stagecoach is also involved in operating commuter, transit, contracted, charter and sightseeing services.
Virgin Group
- Virgin is a leading international investment group and one of the world's most recognised and respected brands.
- Conceived in 1970 by Sir Richard Branson, the Virgin Group has gone on to grow successful businesses in sectors including mobile telephony, travel &transportation, financial services, leisure & entertainment and health & wellness.
- It has a 51% shareholding in Virgin Rail Group, which operates the West Coast rail franchise.
Stagecoach holds 90% of the share capital of the holding company, Inter City Railways, and Virgin holds the remaining 10%.
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