Rail franchise bid case starts in high court
(The Guardian Business News)

Stagecoach among operators disqualified from bidding for franchises over pensionsA high court battle pitting rail operators against the government is due to start on Monday, with Stagecoach and others seeking tens of millions of pounds in compensation in a case that could have far-reaching implications for the privatised rail system.Stagecoach is suing the Department for Transport after being disqualified from bidding for three rail franchises last year for failing to comply with demands on pension liabilities. It is expected to argue that the DfT mismanaged the bid process with regards to the Railway Pension Scheme, where a £7.5bn deficit has been identified by the regulator, and was attempting to shift too onerous a responsibility on to private firms. Continue reading...