BIDDERS for the second biggest rail franchise in the region could take legal action if the decision fails to go their way.

The Northern Echo has learnt that at least one of the challengers for the Trans Pennine Express contract is considering seeking a judicial review.

The consortium of First Group and French transport company Via GTI is said to be unhappy about the Strategic Rail Authority's handling of the franchise process.

It is thought to be favouring controversial rail operator Connex for the route, which links the North-East with Manchester and Liverpool, and is currently run by Arriva, the third bidder.

Critics say this is a sop to appease Connex, which is expected to lose control of the commuter South Central Line in London following criticism of the service.

A source close to the First Group bid said: "We have not been kept informed of developments nor fully consulted by the SRA.

"There is the possibility of a judicial review being sought as we have spent a seven figure sum on this bid and if we don't think it has been dealt with fairly we have got a case for getting our money back."

First Group already runs the First Great Western, First Great Eastern and First North Western routes.

Its partner Via GTI, which recently changed its name to Keolis following a merger, runs bus and train services in six European countries and has a turnover of £1.2bn.

The consortium aims to invest more than £500m in the franchise.

Its plans include a fleet of 100mph-plus Bombardier 220 -style diesel electric trains, cutting journey times between Newcastle and Liverpool by 50 minutes. Several stations, including Middlesbrough, Yarm and Northallerton, would receive upgrades and the mothballed Leamside line in County Durham could also be re-opened for passenger services.

The result, it says, would be a fully integrated network with more frequent services and less overcrowding.

Gavin Bostock, a spokesman for the Strategic Rail Authority, said: "We are looking at each bid on its own merits.

"If anyone felt they had suitable grievances they could pursue a judicial review, but I am sure we would vigorously defend any decision made."

* Transport Secretary Stephen Byers is expected to announce the winner of the franchise next month. He has previously said he favours shorter rail franchises and could award a ten-year rather than 20-year contract.