Branson defends Virgin Trains' extra £100m subsidy

Virgin Trains chief Sir Richard Branson has defended its extra £100m (€158m) in subsidy.

The company is getting the money to help maintain services on one of Britain's busiest routes.

The Strategic Rail Authority awarded it the extra subsidy after Railtrack failed to meet its deadlines for the £7 billion upgrade of track and signals on the West Coast Main Line.

The delay means Virgin's new Pendolino trains, which are making their inaugural passenger journey between Birmingham and Manchester today, cannot run at their 140mph top speed.

Branson says: "Railtrack had agreed to deliver certain things to Virgin. That was the basis on which we took up the franchise.

"They didn't deliver. We haven't been able to get the schedules or the passengers we wanted."

He adds that Virgin Trains' contract with Railtrack contained a compensation formula, so it was due to pay this money.

Sir Richard says: "If they hadn't, we would have had to go to court. That would have delayed Network Rail coming out of administration."

He adds that the money will go towards investment in new rolling stock, such as the 53 Pendolinos which Virgin has ordered in a contract worth more than £1bn, (€1.58bn) and on improving train travel for passengers between London and Scotland.

Speaking before the first of the Italian-designed tilting trains left Birmingham International station, Sir Richard said he was confident they would be running at 125mph in tilt mode by next spring. At present, they can operate at only 110mph and without tilting.