East Coast rail line back in state control with LNER.

East Coast rail line is back in state control for third time in 12 years, after the termination of the Virgin East Coast francise yesterday following its financial collapse three years after the line was last privatised. The service will be rebranded as London and North Eastern Railway going back to the popular name during the hey days of steam before nationalisation of the UK network in 1948. The crisis on the line between London, Newcastle and Scotland will prove the failure private sector involvement in public services.

Chris Grayling said “ The route has its challenges but it is not a failing railway”.

Ellie Harrison of Bring British Rail, a campaign for state ownership said:” We’re over the moon. That’s what we’re fighting for. We had East Coast in public ownership for five years, and it acted as a brilliant benchmark to measure the success of the other franchises.” In just over a decade this is the third time private companies have walked away from East Coast. Great Eastern Railway was stripped of the franchise after its parent company became insolvent in 2006. National Express handed back the line in 2009 after financial difficulties.

In the franchise system the companies had to take massive risks with thin margins of profitability.