Sir Richard Branson's Virgin rail company today announced radical proposals to run 205 mph trains - the fastest in Europe - on the York-London route.

The £5.3 billion bid to wrest the East Coast line franchise from York-based GNER involves the construction of a new track through North Yorkshire, apparently to run alongside the existing track.

From 2005, Virgin wants to launch new 205mph trains named VGVs - Virgin Grande Vitesse - after the Train Grande Vitesse, the 186mph French high-speed trains. The trains would cut the London-Edinburgh journey time to just three hours, 15 minutes.

Virgin plans to have upwards of 60 VGV trains in service on the route by 2009, when it says the line can be linked with Channel Tunnel services.

But it is also proposing the immediate replacement, in 2003, of all high-speed trains on the route by tilting diesel trains of the type currently being built by Canadian company Bombardier at Wakefield for Virgin's CrossCounty route.

Sir Richard said he was looking forward to challenging the domestic airlines head-on. "To get all-round benefits to all the cities and counties that can be served by the East Coast main line, a new high-speed line, with the fastest trains in Europe, is the only answer."

Virgin, which already runs the West Coast route and also Cross Country services through York, is locked in a two-horse race with the incumbent GNER for the new 20-year franchise of the flagship East Coast line.

GNER has already announced how it would introduce faster tilting trains, run extra services and upgrade York station if its franchise is renewed.

Virgin submitted its bid to the Shadow Strategic Rail Authority two weeks ago, but only revealed details to the public today.

It said its plans were supported by the owners of three other train companies that use parts of the East Coast line - Prism (which runs West Anglia Great Northern), GB Railways (Anglia) and National Express (Midland Main Line).

GNER responded coolly today, saying that it had spent two-and-a-half years putting together proposals which would mean more trains and faster trains, and address the problems of capacity on the route.

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