Nat Express cleared for Great Anglia

The award of the £375m-a-year Greater Anglia franchise to National Express, the biggest rail and coach operator, has been cleared by the Competition Commission without any conditions.

The award of the £375m-a-year Greater Anglia franchise to National Express, the biggest rail and coach operator, has been cleared by the Competition Commission without any conditions.

The company and investors had feared that National Express would have to give undertakings, such as controls on ticket prices. Some had even suggested that the award would be blocked, requiring the Strategic Rail Authority to re-tender the franchise. However, the watchdog yesterday gave provisional clearance, without conditions, subject to consultation.

"The acquisition may not be expected to lead to a substantial lessening of competition in any of the areas we have been asked to look at," said the inquiry chairman Paul Geroski. "There would be no incentive for National Express Group to raise coach fares or reduce services in an attempt to force passengers from coach to rail."

The Greater Anglia franchise, which was awarded in January and which National Express started running in April, brings together the old Anglia, Great Eastern and West Anglia services including the London-Cambridge route. The Competition Commission's investigation began after the franchise was already being operated by National Express.

The competition authorities had been concerned about the impact of the award on customers and prices, as National Express operates coach lines offering similar routes to some Greater Anglia services, which operate out of London's Liverpool Street station. Also, with the new franchise, National Express has two routes to Southend from London stations.

National Express also said yesterday that it had agreed a two-year extension to its Silverlink franchise, which covers services between Northampton and London as well as some routes through north, east and west London.