GNER could pioneer plans to build a new High Speed Train - but will need a further franchise extension, rail chiefs revealed today.

The York-based company is at the forefront of discussions to construct a successor to the current InterCity 125 diesel-powered train sets.

GNER chiefs believe that the new train, the HST2 project, could be in service in about six years' time, with a prototype developed in about three years' time

The firm's production director, Richard McLean, told a national magazine that the company believes it has the knowledge to lead the rail industry's development of the new train.

But for GNER to play any real part in leading the project, it would need an extension to its existing franchise - due to end in May 2005.

Mr McLean said the existing HST, which has been in service for 25 years, would be "a hard act to follow", but a replacement was needed.

GNER company spokesman David Mallender said: "The industry needs some kind of new High Speed Train that would be suitable for different operators and different high speed routes.

"One company is needed to lead the project, to make it happen. We would hope it would be GNER. We are a key part of it anyway.

"This is an example of the sort of project GNER would actively look at and could pursue with the benefits of a longer franchise."

Meanwhile, it was reported today that more than 20,000 passengers have taken up GNER's discount fares for first-class travel as the company competes with domestic airlines for high speed services.

The York-based company has been offering first-class travel at £57 return from York to London - to persuade travellers that flying does not pay.

Now GNER has made the promotional offer a permanent deal, with discount fares available throughout the year.

Information on GNER services and fares is available from York Station or from GNER, telephone 08457 225 225.

Updated: 10:48 Friday, October 04, 2002