A NEW rail company based in York could find out in a matter of weeks whether its application to run services on the tracks has been granted.

Grand Central's scheme to introduce a cross-Pennine rail service offering passengers discounted travel will be approved or rebuffed by the Office of the Rail Regulator (ORR) very soon.

The company, which is based at The Crescent in York, is planning to run up to a dozen cheap services a day, with return journeys from York to Leeds for as little as £2 and Leeds to Manchester from just £8.

At the moment, the return fare from York to Manchester is £17.90.

Formed four years ago, the company will run on a route from Newcastle to York, Leeds, Manchester and Preston and would be operated without any Government subsidy.

Last month, the Evening Press reported that the ORR had awarded the firm an operator's licence, described by Grand Central chiefs as a "key milestone", before holding a final hearing on March 31.

That hearing, which was to consider Grand Central's plea for a track access contract, was attended by most of the industry's key players, including the Strategic Rail Authority and Arriva Trains Northern.

A positive decision would pave the way for the company to begin running services, on refurbished high speed trains, from as early as May.

Its rail proposals have been welcomed by rail passenger groups, but, in previous meetings, they have come under fire from rival operators who claim the tracks are already congested enough.

A Grand Central spokesman said: "A series of follow-up meetings is being held to ensure a full examination of the benefits offered by the Grand Central plan and a decision is expected in the coming weeks."

Updated: 09:43 Saturday, April 24, 2004