TRANSPORT firm Arriva’s new parent company has not ruled out a bid for the East Coast Main Line franchise, which could see passengers able to use the group’s services all the way from the North-East into Europe.

Ulrich Homburg, head of DB Bahn, Deutsche Bahn’s passenger transport division, was yesterday in the North- East for the first time since the state-owned German transport firm completed the £1.59bn takeover of Sunderland- based Arriva in August.

When asked if Arriva would consider bidding for the nationalised East Coast Main Line franchise, which is due to return to private control after November next year, Mr Homburg said his company would be interested in looking at it.

However, he added that it was not the company’s strategy to “say what can we buy now” and purchases would be looked at “case by case”.

Arriva chief executive David Martin said: “We will look at that, but it comes back to risk versus reward – if you can make a profit. We are not in business just to put flags around.”

But he added that if the circumstances were right, “we could put a robust bid in.”

Deutsche Bahn tested its latest high-speed train through the Channel Tunnel over the weekend, which could lead to direct services between Germany and the UK by 2013. If Arriva was to take on the East Coast Main Line, it would mean that passengers could travel all the way from the North-East to mainland Europe on trains run by the same company.

Mr Homburg said: “I think it is a nice vision that you will have the chance to experience the service of the Deutsche Bahn group all of the way.”

He also reassured Arriva’s 44,000 staff about their futures, saying it was a takeover based on the fact the company was a strategic fit and the firm would retain its own identity.

He said: “We think that the future is a future of growth.

We are not planning to decrease our business, and there is no question of reducing our staff.

“What we will do is combine our experience. Arriva has a lot of experience, Deutsche Bahn has a lot of experience and what we are doing is putting the guys together and talking about best practice and experience.”

Mr Homburg said that buying Arriva made strategic sense for the German firm.

He said: “At the end of the day, we will have in Europe a few big players in the transport sector.

“We talk about a process of consolidation in this market in the next few years and we want to be one of the big players, so we have to look for opportunities.

“It is better you are the first mover not the follower. We are really convinced we have bought a very, very good company.”

Following the takeover, Deutsche Bahn’s passenger transport division now runs German rail and bus services, Arriva bus and rail in 11 countries, and international long distance rail.

Deutsche Bahn also took on operation of the Tyne and Wear Metro system on April 1.