Virgin and GNER are both considering legal action against Railtrack to increase their compensation for revenue lost since the Hatfield crash.

Virgin claims Railtrack paid out only half of the £100 million lost as a result of passengers using other forms of transport because of disruption and speed restrictions imposed after the crash. GNER is understood to have lost a similar figure.

While Virgin confirmed today it will raise fares by almost ten per cent from May to recoup some of those losses, GNER said it was still in negotiations with Railtrack.

But a Railtrack spokesman said today: "Railtrack has set aside £400 million to cover all compensation obligations to train operators. Having sought further legal advice, Railtrack remain of the view that its obligations have been met in full and further claims will be resisted."

In response David Mallender, GNER spokesman, said: "It's interesting to learn that is Railtrack's position. But clearly we will wish to continue to seek to recover lost money.

"I don't think legal action can be ruled out at this stage, but we would hope to be able to recover the money without recourse to legal action."

Jim Rowe, spokesman for Virgin, said: "We would rather not have to, but legal action is an option."

Furious rail passengers' leaders today branded the Virgin ticket price rise as "completely unacceptable".

GNER has announced it will raise its prices by 3.3 per cent from May but says this is a normal increase delayed from January because of the difficulties at the beginning of the year.

Mr Mallender, said: "We are reducing fares and offering discounts rather than putting fares up by large percentages."

A Virgin spokesman said: "We are very unhappy with the situation which is entirely out of our control. Rail users are having to help pick up the pieces from the Hatfield disaster, which they shouldn't have to do."

Normal services resume on Virgin trains on April 23 and from May 20 saver tickets and open tickets will rise from between 9 per cent and 9.8 per cent.

Normal services resume on GNER trains on Monday. The 3pm London to York service, for example, will be cut by around ten minutes to one hour 42 minutes, while the 8am from York to London will take two hours three minutes.

GNER's daring offer to win back passengers by offering them a York to London single for a fiver, or a tenner return, has now sold 50,000 tickets. The offer runs from April 23 to May 3 and biggest demand has been for the weekend of April 27 and 28.

And in a massive vote of confidence for York, Railtrack is holding its AGM in the Barbican Centre on July 24. Richard White, City of York Council's assistant director of commercial services, said: "The Barbican is increasingly important as a conference centre, which can only be good news for the city and its businesses." The meeting is expected to bring hundreds of shareholders in the company to York.

Updated: 11:34 Thursday, April 05, 2001