GNER revealed last night that it was still considering whether to seek a judicial review of access rights to the East Coast Main Line.

GNER has objected to the competition on the line, which runs from Scotland to London, and is considering mounting a challenge in the High Court.

Rail company Grand Central has been given permission by the Office of Rail Regulation (ORR) to run three daily services from Sunderland, through Hartlepool, Eaglescliffe, Northallerton and Thirsk, to London King's Cross.

It plans to start running the trains from December 11 and GNER has said the calls at York alone would cost it £5m a year.

Solicitors acting for GNER and the ORR have exchanged letters. Last night, a spokesman for GNER said: "We have not come to any conclusions as yet, we now have to review where we are and consider our steps. There is no specific case or time-frame that we are working to."

GNER believes the ORR's decision to allow Grand Central to use the line is unfair as the company is not franchised by the Government and so does not have to pay fixed charges or premiums.

It will pay the Government £1.3bn over the seven to ten-year duration of its franchise deal, which was signed in March last year.

Last night, a spokesman for Grand Central said it had historically had a good relationship with GNER and hoped that would continue.

The spokesman said: "The very reason the railway was privatised was to generate competition.

"There has not been any competition for ten years and the moment there is, they cry foul - that has disappointed us."