FirstGroup has been granted a two-year extension for its South Western Railway (SWR) franchise by the UK government.
The coach and rail operator said the contract, which began in May 2021, will now run until May 2025 on the existing terms.
SWR, which connects London to cities including Portsmouth, Bornemouth and Exeter, cancelled hundreds of trains last week due to the latest round of strikes.
Firstgroup will run the SWR franchise for another two years until May 2025
At least 233 services were cancelled by SWR last Friday after its non-striking drivers refused to cross the picket line in support of striking colleagues with union Aslef, according to the i newspaper.
FTSE 250-listed FirstGroup operates another three rail franchises: Avanti West Coast, Great Western Railway (GWR), and TransPennine Express, plus an open access passenger service, Hull Trains.
It also has a bus division, which operates around a fifth of local bus services in the UK.
This week, the company revealed it had agreed to snap up Essex-based bus company Ensignbus for an undisclosed sum.
The deal will provide ‘a number of synergies’ and value accretive growth opportunities in the business-to-business and bus vehicle dealership markets, as well as enhancing FirstGroup’s local commercial bus operations in Essex, the group said.
FirstGroup chief executive, Graham Sutherland, welcomed the rail contract renewal and pledged to ‘continue improving the customer offering’.
‘We are committed to working closely with government and our partners to deliver a successful railway network that provides vital connections for customers and communities along the SWR route,’ he added.
Firstgroup shares were down 0.9 per cent to 111.6p in morning trading on Friday.
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