Media playback is unsupported on your device

Virgin's Branson urges 'transparent' rail bid process

6 December 2012 Last updated at 19:23 GMT

Virgin founder Sir Richard Branson has called for "transparency and quality" to be part of the new rules on the future of franchising, following the collapse of a deal for the West Coast Mainline route.

FirstGroup was told it had won the bid in August but a legal challenge by Virgin unearthed errors in calculations. The government announced on Thursday that Virgin Trains will continue to run the service for another 23 months - until 9 November 2014.

A report into the collapse of the £5bn West Coast Mainline franchise deal has blamed a "damning failure" by the Department for Transport (DfT).