Virgin Trains has had its bid to continue operating trains on the West Coast Main Line disqualified by the Government. 

The train operator could soon disappear from Britain's railways altogether.

Stagecoach, which partners Virgin Group in running Virgin Trains, has been banned from three franchise competitions due to a row over pensions.

The decision by the Department for Transport (DfT) means the operator's bid to run trains after its current deal expires in March 2020 has been barred.

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Virgin Group boss Sir Richard Branson wrote in a blog post that he was "devastated" by the Government's decision, claiming that Virgin Trains is "one of the best train companies in the UK, if not the world".

Virgin Trains has run West Coast services since 1997 and has been praised for introducing a number of passenger benefits such as automatic delay compensation payments, scrapping Friday afternoon peak ticket restrictions and launching free on-board entertainment system Beam.

Sir Richard wrote: "Running the railway comes with many challenges and the West Coast Main Line was struggling when we took it over, but we were determined to turn it around.

"With new trains, new track and our incredible team, we have become renowned for the award-winning way we look after our customers."

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He added: "We are still looking closely at the decision and we are now considering our options."

The winning bidder for the West Coast Partnership franchise - due to be awarded in June - will be responsible for services on both the West Coast Main Line from March 2020, and designing and running the initial HS2 high-speed services from 2026.

A joint bid had been entered by Virgin, Stagecoach and SNCF.