A consortium involving Sir Richard Branson's Virgin Trains and transport group Stagecoach has won a £3.3billion contract to run the East Coast main line from next year. The decision  means that the two primary rail routes  between London and Scotland will be operated by the same two companies. Stagecoach and Virgin have controlled the West Coast Main Line  since 1997. Transport Secretary Patrick McLoughlin said it represented a 'fantastic deal' for passengers and taxpayers and would mean new trains and better services. The £3.3billion deal will give Branson (pictured) control of both of the main lines from London to Glasgow . The number of seats across the fleet will increase 50 per cent by 2020, ministers said. There are also plans for new direct links to Huddersfield, Sunderland, Middlesbrough. The award of the new franchise marks a return to the private sector for East Coast, which has been run by the Department of Transportation since 2009 following the withdrawal of National Express. The move was condemned by union leaders as a 'national disgrace' and 'utter betrayal'. Labour and transport unions had fought to keep East Coast in the public sector, pointing to the good returns it has made to the Treasury. The Inter City Railways consortium beat rival bids by the French and the UK's First Group. It will start the East Coast franchise in March 2015. But it is likely to raise questions over the prospect of Sir Richard's Virgin group running both of the main lines between London and Scotland and having a stranglehold on North-South rail travel. Transport Secretary Patrick McLoughlin, pictured, said it represented a 'fantastic deal' for passengers . Eyebrows may also be raised over the selection of Stagecoach to run the major rail route. The company's South West Trains service was recently lambasted by in Parliament over 'cattle-truck' conditions on its commuter route into the capital. It was also accused of treating passengers as 'cash cows'. Over the next eight years Inter City Railways will pay the government around £3.3billion to operate the new franchise. Mr McLouglin said this was more than offered by the unsuccessful rival bids. Inter City Railways said it will invest £140million to bring extra benefits for passengers. This includes complete refurbishment of the existing train fleet, better WiFi connections and onboard catering on the new Inter City Express train fleet. It also promised to improve ticket offices and introduce 170 new ticket vending machines and more than 500 new car parking spaces. Transport Secretary Patrick McLoughlin said: 'This is a fantastic deal for passengers and for staff on this vital route. It gives passengers more seats, more services and new trains. 'We are putting passengers at the heart of the service. I believe Stagecoach and Virgin will not only deliver for customers but also for the British taxpayer.' Ministers added that rail journeys between London and Edinburgh will be 'transformed' by more seats, more services and new trains. The new deal will include 23 new services from London to key destinations, with 75 more station calls a day. There are plans for new direct links to Huddersfield, Sunderland, Middlesbrough, Dewsbury and Thornaby and proposals for more trains to London from Bradford, Edinburgh, Harrogate, Leeds, Lincoln, Newcastle, Shipley, Stirling, and York. The Government said there will be 3,100 extra seats for the morning peak time by 2020 and across the entire train fleet there will be 12,200 additional seats – an increase of 50 per cent increase. It said 65 new Intercity Express trains will be brought into passenger service from 2018, totalling 500 new carriages. Journey times from London to Leeds reduced by 14 minutes, and from London to Edinburgh by 13 minutes. Ministers said rail journeys between London and Edinburgh will be 'transformed' by more seats, more services and new trains. The new deal will include 23 new services from London to key destinations . And by 2020 all of the 65 modern high-speed electric trains will be in service and will replace 39 existing trains. Inter City Railways has also given a commitment to addressing the cost of train travel. It said it would look to reduce all long-distance standard anytime fares by 10 per cent - marking a saving of £15 for passengers travelling between London and Edinburgh. Virgin Group senior partner Patrick McCall said: 'We're delighted to have been chosen. 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 plan to deliver similar success on the East Coast.' Martin Griffiths, Chief Executive of Perth-based Stagecoach Group, said: 'We have developed major programmes to help young people, communities and small businesses along what is one of Britain's major rail routes.' The Government said there will be 3,100 extra seats for the morning peak time by 2020 and across the entire train fleet there will be 12,200 additional seats – an increase of 50 per cent increase . But unions condemned the decision to return East Coast to the private sector as 'a national disgrace and an act of utter betrayal'. They pointed to the bumper £1billion windfall for taxpayers that was generated by the state-run East Coast mainline. Mick Cash, general secretary of the RMT union, said: 'It is simply ludicrous to even contemplate reprivatisation when not only have there been two previous private sector failures on the East Coast route but when the public sector rescue operation has been such a stunning success.' There had been speculation that a consortium of Eurotunnel and French company Keolis - which is 70 per cent owned by French state railway SNCF - had been chosen as the new East Coast operator. The other shortlisted bidder was FirstGroup - which has recently also lost its First Capital Connect and ScotRail franchises.
Consortium involving Virgin Trains has been awarded £3.3bn franchise .
It will give Branson control of both main lines from London to Glasgow .
Virgin Trains and Stagecoach have operated West Coast line since 1997 .
Transport Secretary said it would offer more trains and better services .
There will be an 50% increase in number of seats across fleet by 2020 .
A consortium involving Sir Richard Branson's Virgin Trains and transport group Stagecoach has won a £3.3billion contract to run the East Coast main line from next year. The decision  means that the two primary rail routes  between London and Scotland will be operated by the same two companies. Stagecoach and Virgin have controlled the West Coast Main Line  since 1997. Transport Secretary Patrick McLoughlin said it represented a 'fantastic deal' for passengers and taxpayers and would mean new trains and better services. The £3.3billion deal will give Branson (pictured) control of both of the main lines from London to Glasgow . The number of seats across the fleet will increase 50 per cent by 2020, ministers said. There are also plans for new direct links to Huddersfield, Sunderland, Middlesbrough. The award of the new franchise marks a return to the private sector for East Coast, which has been run by the Department of Transportation since 2009 following the withdrawal of National Express. The move was condemned by union leaders as a 'national disgrace' and 'utter betrayal'. Labour and transport unions had fought to keep East Coast in the public sector, pointing to the good returns it has made to the Treasury. The Inter City Railways consortium beat rival bids by the French and the UK's First Group. It will start the East Coast franchise in March 2015. But it is likely to raise questions over the prospect of Sir Richard's Virgin group running both of the main lines between London and Scotland and having a stranglehold on North-South rail travel. Transport Secretary Patrick McLoughlin, pictured, said it represented a 'fantastic deal' for passengers . Eyebrows may also be raised over the selection of Stagecoach to run the major rail route. The company's South West Trains service was recently lambasted by in Parliament over 'cattle-truck' conditions on its commuter route into the capital. It was also accused of treating passengers as 'cash cows'. Over the next eight years Inter City Railways will pay the government around £3.3billion to operate the new franchise. Mr McLouglin said this was more than offered by the unsuccessful rival bids. Inter City Railways said it will invest £140million to bring extra benefits for passengers. This includes complete refurbishment of the existing train fleet, better WiFi connections and onboard catering on the new Inter City Express train fleet. It also promised to improve ticket offices and introduce 170 new ticket vending machines and more than 500 new car parking spaces. Transport Secretary Patrick McLoughlin said: 'This is a fantastic deal for passengers and for staff on this vital route. It gives passengers more seats, more services and new trains. 'We are putting passengers at the heart of the service. I believe Stagecoach and Virgin will not only deliver for customers but also for the British taxpayer.' Ministers added that rail journeys between London and Edinburgh will be 'transformed' by more seats, more services and new trains. The new deal will include 23 new services from London to key destinations, with 75 more station calls a day. There are plans for new direct links to Huddersfield, Sunderland, Middlesbrough, Dewsbury and Thornaby and proposals for more trains to London from Bradford, Edinburgh, Harrogate, Leeds, Lincoln, Newcastle, Shipley, Stirling, and York. The Government said there will be 3,100 extra seats for the morning peak time by 2020 and across the entire train fleet there will be 12,200 additional seats – an increase of 50 per cent increase. It said 65 new Intercity Express trains will be brought into passenger service from 2018, totalling 500 new carriages. Journey times from London to Leeds reduced by 14 minutes, and from London to Edinburgh by 13 minutes. Ministers said rail journeys between London and Edinburgh will be 'transformed' by more seats, more services and new trains. The new deal will include 23 new services from London to key destinations . And by 2020 all of the 65 modern high-speed electric trains will be in service and will replace 39 existing trains. Inter City Railways has also given a commitment to addressing the cost of train travel. It said it would look to reduce all long-distance standard anytime fares by 10 per cent - marking a saving of £15 for passengers travelling between London and Edinburgh. Virgin Group senior partner Patrick McCall said: 'We're delighted to have been chosen. 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 plan to deliver similar success on the East Coast.' Martin Griffiths, Chief Executive of Perth-based Stagecoach Group, said: 'We have developed major programmes to help young people, communities and small businesses along what is one of Britain's major rail routes.' The Government said there will be 3,100 extra seats for the morning peak time by 2020 and across the entire train fleet there will be 12,200 additional seats – an increase of 50 per cent increase . But unions condemned the decision to return East Coast to the private sector as 'a national disgrace and an act of utter betrayal'. They pointed to the bumper £1billion windfall for taxpayers that was generated by the state-run East Coast mainline. Mick Cash, general secretary of the RMT union, said: 'It is simply ludicrous to even contemplate reprivatisation when not only have there been two previous private sector failures on the East Coast route but when the public sector rescue operation has been such a stunning success.' There had been speculation that a consortium of Eurotunnel and French company Keolis - which is 70 per cent owned by French state railway SNCF - had been chosen as the new East Coast operator. The other shortlisted bidder was FirstGroup - which has recently also lost its First Capital Connect and ScotRail franchises.
Virgin Trains and transport group Stagecoach has the West Coast Main Line  since 1997. Transport Secretary Patrick McLoughlin said it represented and would mean new trains and better services. The £3.3billion deal will give Branson (pictured) control of both of the main lines from London to Glasgow . The number of seats across the fleet will increase 50 per cent by 2020, ministers Transport Secretary Patrick McLoughlin, pictured, and Edinburgh will be 'transformed' by more