London Midland has been awarded a two-year extension to operate rail services in the West Midlands.
The operator, which is owned by Govia, will retain the West Midlands franchise until October 2017.
Over the course of the contract extension, £13 million worth of improvements will be made to services including additional services, free Wi-Fi and upgraded ticketing facilities.
London Midland will receive a £130 million subsidy over the period of the direct award to fund services but will be subject to new, stricter satisfaction and punctuality targets.
Rail Minister Claire Perry said: “We have already delivered significant improvements in the West Midlands and surrounding areas – including investing more than £60 million in a fleet of brand new trains, and the massive £750 million redevelopment of Birmingham New Street station which was completed earlier this year.
“Today’s contract with London Midland builds on this work, and will not only ensure that customers continue to benefit from better journeys, but also support long-term economic growth in the region and beyond.”
London Midland had committed to rolling out free Wi-Fi on all routes by the start of the next franchise. New drivers, conductors and onboard crew will also have to be recruited in order to deliver the new timetable.
London Midland managing director Patrick Verwer said: “Winning this contract is a great endorsement by the DfT of how London Midland is focused on improving our passengers’ journeys.
“Since 2007 we have invested nearly £300 million in trains and stations. Over the last two years we have significantly improved performance – cutting both delays and cancellations. Twelve months ago we delivered a further £60 million investment in 10 brand new trains. Last year, we also introduced a new timetable, offering more seats and services than ever before into and out of major towns and cities and cut our Birmingham to London fares by up to 40 per cent.
“This new franchise offers some very exciting opportunities and will bring benefits touching every element of our passengers’ journeys. It will enable us to continue delivering improvements for our customers and, as before, we remain committed to listening to our passengers and working with our stakeholders, communities and local elected representatives to make further improvements in the months ahead.”
