Nat Express cleared for rail bid

National Express operates rail services including Midland Mainline

Transport firm National Express is to be allowed to bid for a new rail franchise by competition watchdogs.

The Competition Commission has allowed it to apply to run the Thameslink and Great Northern (TGN) routes, saying it would not restrict passenger choice.

Five bidders want the new franchise, which begins in April 2006 for nine years, running trains north of London.

There had been concerns as National Express already operates a number of franchises in southern England.

Routes analysed

The train, coach and bus operator runs the Gatwick Express, Greater Midland, Silverlink and Midland Mainline rail franchises.

"After analysing these routes, we've provisionally concluded that we would not expect NEG (National Express) to raise fares or reduce services on these routes as a result of the acquisition," the commission said in a statement.

The Office of Fair Trading referred the National Express bid for the potentially lucrative franchise to the competition watchdog in August.

The new route will operate passenger services mainly to the north of London, including the current Thameslink routes, with a winner set to be announced in December.

National Express, which reported pre-tax profits of £63.1m last year, runs about 30% of UK passenger trains.

It says it carries one billion passengers in the world every year on its train and coach services.