The Go-Ahead Group PLC (LSE:GOG) said today that its Govia joint venture has been given an eight-week extension to its London Midland rail franchise, from 15 October to 10 December 2017, under existing franchise terms.
In a statement, the public transport provider said that the Department for Transport may also grant a further eight-week extension on the same terms to 4 February 2018. This option, if the DfT decides to exercise, will be triggered by 18 August 2017.
Govia is shortlisted, along with one other bidder, for the new West Midlands franchise to be awarded by the DfT.
READ: Go-Ahead says full-year expectations unchanged, with modest growth from buses, but rail franchises mixed
Govia is the joint-venture company that has been operating the franchise as London Midland since 2007. Go-Ahead holds a 65% stake in Govia, while France's Keolis has the remaining 35% stake. London Midland has been operating train services from London to Liverpool and across the West Midlands.
In afternoon trading, Go-Ahead shares were up nearly 3%, or 51p at 1,786p.
Focus on delivering best possible service
Patrick Verwer, London Midland's managing director, said: "This extension means we can continue to build on the successes that have made this an international award winning franchise in recent years.
“Our focus will remain on delivering the best possible service to our passengers each and every day, and maintain strong levels of customer satisfaction."
Earlier this year, London Midland was named the country's most improved train company by the Institute of Rail Operators, and Britain's most improved organisation for Customer Service by the UK Customer Service Institute.