LONDON (Reuters) - British transport company FirstGroup (L:FGP) said it signed a contract with the UK government to run train services in western England until April 2019, extending its operatorship with a promise to add capacity on busy routes.
Under the contract, FirstGroup will pay the government around 68 million pounds to operate the rail franchises from September 2015 until April 2019. The contract also includes an option for the government to extend the franchise for a further year.
FirstGroup's Great Western rail franchise is its largest, and its retention provides reassurance to investors after the company suffered a series of setbacks in its UK rail business last year, when it bid for five contracts without winning one.