National Express awarded c2c extension.

Following threats from former transport secretary Lord Adonis to terminate National Express from operating, the group has now won a two-year extension to its c2c franchise.

The c2c commuter line, which runs between Essex and Fenchurch Street in the City of London, has been granted an extension to May 2013. The contract was previously due to expire in May 2011.

The line which sees approximately 30 million passengers every year will prove very important during the 2012 Olympic Games as it will provide the London, Tilbury and Southend services until 2013.

National Express won the two-year extension after achieving record-breaking punctuality across the c2c franchise. Chief executive, Dean Finch said: “It is testament to our highly professional team who have made the c2c one of the best performing train operators in Britain.

“We are resolute in our commitment to customer service and are determined to continue delivering the highest standards of train service performance.”

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Stagecoach report high profits despite recent heavy snowfall.

The bus and rail operator reported pre-tax profits in the six months to the end of October had risen to £108.7m, an increase of £33.2m from last year.

The company saw an increase in their UK bus division with profits rising by 16.5 per cent thanks to increased passenger numbers

As the company’s revenue increased by 5 per cent to £1.1bn, chief executive Brian Souter said: “These are a strong set of results and we are encouraged by the increased demand for our services in the UK and North America.”

The company’s US business, megabus.com also had a boost with profits up 9.7%. Ahead of the increase in fuel prices, Mr Souter said the group would “monitor closely the rate and sustainability of economic recovery.”

He added: “The group has a strong financial position and we remain focused on robust cost control. We have made a good start to the second half of the financial year and current trading remains in line with management expectations.

“We look forward with confidence and believe the outlook is positive for our bus and rail services.”

Train travellers angry as fares may rise nearly 13%.

 The Association of Train Operating Companies (Atoc) revealed rail fares would go up by an average of 6.2% in the New Year. As regulated fares are expected to rise by between 5.8 and 7.8 per cent, the increase has sparked criticism from travellers.

Leader of the TSSA rail union, Gerry Doherty said: “It is simply outrageous that hard-pressed commuters are being forced to pay fare hikes when they are themselves facing pay freezes and job cuts.

“Passengers will regard that as a sick joke seeing as we have the most expensive and overcrowded railway in Europe.”

As regulated fares are tied to an annual price cap formula, they can increase every January depending on the previous year’s RPI inflation rate plus 1%.

Atoc defended the price increase and said the fee hike was important for investment in British railways, making room for improvements in customer satisfaction and punctuality.

Chief executive of Atoc, Michael Roberts said: “We know times are tough for many people but next year’s fare increase will ensure that Britain can continue investing in its railways.

“Even with these fare increases, the money passengers spend on fares covers only half the cost of running the railways – taxpayers make up the difference.”