FIRSTGROUP has been granted approval to launch rail services connecting the North-East with London and Edinburgh.  

The ten-year agreement, sanctioned by the Office of Rail and Road (ORR), will allow FirstGroup's East Coast Trains Limited to operate five trains a day each way from London King’s Cross to Edinburgh, via Newcastle and Morpeth, by 2021.

The company has vowed to offer passengers fares at half the average price and The Northern Echo understands it could use rolling stock from Hitachi Rail Europe, in Newton Aycliffe, County Durham.

Tim O’Toole, chief executive, said: "I’m pleased the ORR has granted track access rights for our low-cost service.

"This is great news for passengers, as our new service will widen the choice of travel options between these cities and offer an attractive alternative to those available today.

“We will offer genuinely low fares at half the average price of today, while adding significant benefits to the UK economy.

"Our brand new trains will be cheaper than other rail services, greener than the plane, quicker than the coach and will get passengers from London to Edinburgh earlier than they can arrive today, all for an average fare of less than £25.

“Now our application has been approved and we have been granted rights, we will implement the next steps to deliver our proposals, which include discussions with Network Rail and rolling stock manufacturers."

Earlier this year, FirstGroup agreed a deal with trainbuilder Hitachi to buy 125mph rolling stock for its TransPennine Express franchise, which connects the North-East with Manchester and Scotland. 

Hitachi will deliver 95 carriages from its £82m Aycliffe factory, with the first trains expected to begin operations in late 2019.