THE GOVERNMENT has announced that it is in talks with Virgin with the intention that it will keep running the West Coast intercity service for nine to 13 months. This will be followed by a short franchise or operating contract of up to two years, and then by a full-length franchise.

In a statement, transport secretary Patrick McLoughlin said: "The cancellation of the InterCity West Coast franchise is deeply regrettable and I apologise to the bidders involved and the taxpayer who have a right to expect better.

"My priority now is to fix the problem and the first step is to take urgent action to ensure that on the 9 December services continue to run to the same standard and passengers are not affected.

"I believe Virgin remaining as operator for a short period of time is the best way to do this and my officials and I will be working flat out to make this happen."