GNER has won the right to run services on the East Coast Main Line for a further two years.

A new refurbished passenger lounge, improved lighting, CCTV and new customer information screens at York Station are among the travel improvements passengers can look forward to from this morning's announcement.

The Strategic Rail Authority (SRA) has awarded a two-year extension to GNER's franchise, a move which secures the future of the York-based company until 2005.

GNER chief executive, Christopher Garnett welcomed the news as a "new beginning" for passengers and employees at the firm, based in York.

GNER, which runs services from Scotland to London Kings Cross, was forced to negotiate a two-year extension after its bid for a 20-year franchise was rejected by Transport Secretary Stephen Byers. Its current deal is due to end in 2003.

That decision, overturning a bid which was backed by the Evening Press, was branded "a fudge" by critics of the Government.

Other improvements pledged by GNER today include:

*Rebuilding all electric Class 91 and diesel High Speed Trains to reduce delays by 50 and 20 per cent respectively;

*Modernising and refitting all carriage interiors - at a cost of £50 million;

*And lengthening all nine High Speed Trains by one coach allowing for an additional 1,400 seats a day (based on three journeys).

Committed investment will total more than £83 million over the next three years - nearly five times as much as was required in its original seven year franchise.

Mr Garnett said: "This extra investment and security of tenure brings some welcome certainty for communities along the East Coast Main Lane and for GNER's 3,000 people.

"By 2005, passengers will be able to enjoy more reliable train performance and an even better on-board service, with steady improvements in the meantime.

"For the longer term, we still hope to create a much bigger railway with new trains, carrying many more passengers on an enlarged East Coast Main Line.

"We are already working closely with the SRA to develop plans beyond 2005. For now, the franchise extension provides an excellent platform to deliver substantial benefits for passengers over the next three years.

"Our staff have worked very hard to deliver the best rail service in the UK despite considerable adversity. A new beginning starts here."

Updated: 09:09 Wednesday, January 16, 2002