[Omah]

http://www.bbc.co.uk/news/business-19264614

FirstGroup will have to find an average of about £390m a year in premium payments to the government (it's much less at the start of the franchise and gets much bigger as the years roll on - £5.5bn at net present value over the franchise term). Virgin currently pays about £160m.

FirstGroup has said it would bring in key improvements for passengers, including cutting standard fares by 15%. If FirstGroup struggles (as is likely), it could be forced to hand back the franchise early, which will cost it a lot of money (£265m) and could put its other UK franchises at risk.

The West Coast Main Line route serves 31 million passengers travelling between London, the West Midlands, the North West, North Wales and the central belt of Scotland.

Virgin has run the franchise since 1997, during which time passenger numbers doubled.

Essentially, FG have "promised" the goverment loadsamoney and massive improvements in services while slashing fares and significantly increasing passenger numbers, none of which is likely to happen, leaving thetaxpayer to foot the bill ....