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The BBC is reporting that National Express is to give up the East Coast franchise by the end of the year, having failed to renegotiate the franchise with the department for Transport.

It is likely that the DfT will take over (nationalise) the franchise itself. Chief Executive Richard Bowker is reported to have resigned.

Congratulations to the DfT for at last doing the right thing. Companies that secure franchises by seriously underestimating the commercial position and undercutting other more realistic bidders must not be allowed to hold the DfT to ransom. It was a disgrace that GNER was ousted by NE in the first place.