A TRAIN company blighted by strikes and poor performance has lost its last chance to continue running rail services in East Lancashire.
Arriva Trains Northern has not made the final shortlist of companies in the running for the new Northern Franchise, the Strategic Rail Authority (SRA) has announced.
It follows the company's failure, in November 2002, to make the final two of the TransPennine Express franchise. That came on the back of costly industrial action by conductors and a £2m fine from the SRA for poor punctuality.
Train services in the North of England are being re-organised, with the creation of the Northern Franchise and a revamping of the TransPennine Express franchise.
One of the two franchises will incorporate Arriva's current TransPennine Express route through Burnley, Accrington, Blackburn and onto Preston.
So by losing out in the running for both franchises, Arriva must give up the East Lancashire route. A new company will take over next autumn.
First Group PLC and Serco/New Railways are shortlisted for the Northern Franchise.
First Group PLC and Connex Transport Ltd are the final two bidding for the TransPennine Express franchise.
Bob Davies, chief executive of Sunderland-based Arriva, said: "While disappointed with the outcome, we will work with the SRA and the company selected to operate the franchise to ensure a smooth transition."
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