London Midland gets four-year extension
Under-fire rail company London Midland has been handed another four-year deal to run trains through Staffordshire and the Black Country.
The firm faced heavy criticism and was forced to offer a multi-million pound compensation package to passengers for cancelling hundreds of services at the end of last year due to a shortage of drivers.
Patrick Verwer, managing director of London Midland, said: "We welcome the announcement of the Government's extension of our franchise to June 2017. This gives us the stability for the next four years to continue to improve our service, and focus on providing the reliable, consistent service our passengers expect and deserve.
"We have seen a continuous period of improvement in our performance since December, and we will continue with our ongoing programme of driver recruitment and training.
"We will also continue to invest in our stations, and in new innovative technology such as our new 110mph trains to London."
The decision received a luke warm response from Lichfield MP Michael Fabricant, who has called for the company to make improvements. He said: "On its past performance, many people will be surprised by the decision but the practical problem was finding another train company to take over from London Midland.
"We should not forget that notwithstanding the renewal, the franchise can be withdrawn at any time if London Midland persists in breaking its service agreement." London Midland runs services to stations in the Black Country and Staffordshire including the Chase Line from Birmingham to Walsall and Rugeley.
It also serves stations in South Staffordshire such as Codsall and Bilbrook.
Industry experts had expected London Midland to be stripped of its franchise when its £332 million contract came up for review last year. But instead, it was allowed to complete its term ending in September 2015 and has now been handed another two years.