inter city - railways limited ("ic-r"), a 50/50 joint venture between the Virgin Group of Companies and Stagecoach Group plc, today (6 June 2007) submitted its bid for the InterCity East Coast rail franchise with a commitment to set a new benchmark for service to passengers.

The bid has been developed through a partnership with incumbent operator Great North Eastern Railway (GNER) and extensive consultation with local stakeholders.

Passengers and taxpayers will benefit from an innovative package of improvements that build on the strengths of the current operation, including
* a multi-million-pound investment in trains, stations and systems
* improved punctuality and reliability
* better environmental performance

A spokesman for inter city – railways said: “New thinking and putting passengers first are at the heart of our plans. InterCity East Coast is a complex and challenging franchise. We believe our unique partnership of the most experienced and innovative operators on the UK rail network will deliver a new benchmark for the franchise's customers and communities.”

ic-r announced in April 2007 that GNER Holdings Limited will acquire a 10% stake in the new franchise holding company at the time of signing a new franchise agreement, if the ic-r bid is successful. Virgin and Stagecoach will jointly retain the remaining 90% shareholding as part of the commercial agreement between the parties.

The Government is expected to award the ICEC franchise in the late summer of 2007