Virgin must explain fare rise

Virgin Trains representatives are today expected to meet the rail industry regulator to explain the company's decision to increase some fares by almost 10%.

Sir Richard Branson's company has been fiercely criticised for announcing prices would rise next month by 9.8% on some routes despite the widespread disruption endured by passengers in the wake of the Hatfield rail crash.

Virgin, which froze fares last January, blamed its increases on Railtrack for failing to provide adequate compensation after Hatfield.

Railtrack has said the £400 million it had paid out in compensation was "substantial and robust" and that the company would oppose any litigation planned by unhappy train operators.

The Strategic Rail Authority chief executive Mike Grant was asked to contact Virgin by Transport Minister Lord MacDonald, who described the price hikes as "a very bitter pill" for passengers to swallow in the wake of post-Hatfield disruption.

After the price rises were announced last week, the Rail Passengers Council described them as "totally unacceptable" and the biggest rail union, the RMT, said they "beggared belief".

East Coast main line operator GNER and the Midland Main Line company are also putting up fares.

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