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12 February 2014

Martin Turner – Head Of SalesPaul Upton – Business Development Manager Heidi Rowan – Business Development Manager

GTMC

Agenda

• East Coast overview

• Franchise update

• Plans & developments

• GTMC business rail travel survey

• East Coast objectives of GTMC partnership

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What/Who Is East Coast?• East Coast runs 155 services each weekday. Around 90 Sat/Sun

• Route 920 miles, from the North of Scotland to London with the longest journey between Inverness and London, a distance of 580.56 miles

• 2,935 people across the route

• Fleet of 42 trains; 30 electric trains (Mallards) and 12 diesel trains known as HSTs (High Speed Trains)

• Principal operating route : Edinburgh/King’s Cross

• Largest route in journey and revenue terms : Leeds/King’s Cross

• 60% of journeys start or end at London King’s Cross

• 19.5 million passenger journeys in 2013

What/Who Is East Coast?• Currently operated by DOR- Directly Operated Railways - which is

part DfT – Dept for Transport - but will be returned to the private sector in February 2015

• £640 million has been paid back to the taxpayer

• We have won 32 Rail Industry Awards since 2009

• Latest National Passenger Survey score from Autumn now up to 91%

• 400,00+ Rewards members

Franchise update

• East Coast is the only UK rail franchise in public ownership

• Taken into DfT ownership November 2009 – initially for an 18 month period

• Period extended due to change of government and their analysis of UK rail, and latterly due to the review of the franchising process

• Now announced that the franchise will go into private ownership February 2015

• Preferred bidders– First Group– Keolis/Eurostar– Stagecoach/Virgin

• Important decisions have been made with DfT beyond the franchise end – particularly on rolling stock

• Completed a five year plan to drive future strategy regardless of future ownership

Main plans

• Focus on punctuality and reliability– Improved maintenance of the diesel fleet – which is 27 years

young, but the most reliable diesel fleet in the UK– New Duplex pantographs on the electric fleet

• £4.2M investment in air conditioning

• Improve exterior train cleaning using Chelaguard treatment – saves 175,000 litres of water per week

• £2.2M investment in Wi-Fi – started February 2014

• Improve information to customers during times of disruption

Slide 8

Wakefield station

• £8M project

• First newly built station on the East Coast Main Line for decades

• Complete re-build moving the station building next to the multi-storey car park

• New shops, footbridge and lifts linking the two platforms

• New travel centre, First Class lounge and Standard Class waiting area

• Opened 22nd December

Slide 9

Wakefield station

Slide 10

Newcastle station

• Interior and exterior development of the 150 year old station

• Glazing and pedestrianisation of the station portico

• Double retail space due to the creation of a mezzanine level

• New travel centre, better toilets, improved signage

• Wider footways at the front of the station to allow for pavement cafes and improved pedestrian access

• Increased pedestrian crossings and a two way cycle track

Slide 11

Newcastle station

Intercity Express Programme

Slide 13

Background• Initial purpose was to replace the diesel fleets for EC and FGW

• 117 carriages initially ordered to replace the EC diesel fleet

• On July 18th the DfT announced that it will order an additional 270 carriages to replace the existing electric fleet on East Coast

• FGW will take delivery of the first trains July 2017

• EC takes delivery of its first IEP train in August 2018, then receives 64 further sets until December 2019

• Shorter trains (5 carriages) can be coupled together to match capacity with demand at peak times, also this gives greater operational flexibility during disruption

• Bi mode operation will maximise efficiency, using the overhead electrics rather than using diesel fuel for the journey length

Slide 14

GTMC business traveller rail survey

• Free & reliable internet : 94%– East Coast is free in First Class – reliability questionable. £2.2M investment has begun which

will be completed in the summer. Will offer higher speeds with 4G network

• New type of season ticket offering a discount for a set number of flexible journeys : 79%

– East Coast Carnet (was available well before Grand Central’s )

• More power points : 92%– Throughout EC services apart from the quiet coach on diesel HSTs

• Better catering facilities : 89%– Improved First Class offer– Introducing new Foodbar

• Business lounges : 68%– King’s Cross, Doncaster, Wakefield, Leeds, Newcastle, Edinburgh

• Meeting rooms and bike storage : 59%/55%– Meeting rooms a challenge, new trains for more bike storage

East Coast Priorities

• Grow West Yorkshire market

• Grow First Class

• Grow Rewards for Business

West Yorkshire

• Wakefield station

• West Yorkshire Executive– £20 upgrade from Standard Anytime to First Class

• Car to rail

First Class

• See business travel as an investment

• See First Class as adding value to that investment

• Value of benefits in First Class

• Value of productive working time adds to that investment

Rewards loyalty scheme

• East Coast Rewards loyalty scheme available to all TMCs

• Before Rewards points can be earned for East Coast eligible journeys, travellers must first register on the East coast website

• Points made in one booking will only be allocated to one account, and that will be to the account corresponding to the email address captured in the loyalty field

• Points are allocated at half a Point for every Standard Class £ spent and one Point for every First Class £

• Only eligible journeys are valid for points :– Details at eastcoast.co.uk/businessrewards

• Points can take up to 30 days from date of travel to reach the Rewards account

Benefits

Cinema tickets M&S Vouchers Beer Hawk

Naked Wines First Class Lounge Pass Free East Coast travel

Free East Coast Wi-Fi Railway Children eVouchers for train travel

Penguin Books McDonald Hotels

Rewards loyalty scheme

• Business Rewards membership 2,680 : 0.7% of total East Coast Rewards loyalty membership

• Acknowledged points differential compared to eastcoast.co.uk

• Data sent is limited which restricts activity that we can do for TMCs

• No business comms from East Coast

• Identification of TMC in data would open up opportunities

Open discussion