HOPES of saving hundreds of rail jobs in York have been boosted after GNER got on board a bid for the East Coast Main Line franchise.

The firm, which abandoned its ten-year £1.3 billion contract for the London to Edinburgh service, has teamed up with Sir Richard Branson's Virgin and Stagecoach to bid for the line.

The consortium has pledged to maintain York as the headquarters of its new operator Inter City Railways Ltd (ICR), if the tender is successful.

That would secure about 400 jobs based at GNER in the city for the lifetime of the franchise and it would likely see the operator's current management maintain a key role.

Alan Hyde, GNER's head of communications, said: "If we are successful then the franchisee would continue to be headquartered in York.

"Our partners have given us that commitment and that is a very important consideration.

"The bidders made clear they had a very high regard for GNER's management team.

"They want to keep it intact and what they are able to tap into is our management credibility going forwards in building a better railway for the future."

The group is the second of four bidders to have made a commitment to York.

Last month, The Press reported that National Express had said it would retain a base in the city.

Council leader Steve Galloway welcomed the news, saying: "It will be good news for the staff because my understanding is that they will take the GNER operation over lock, stock and barrel. We need to have a good quality rail operator with their headquarters in York. It is generally good news, but there is still a long way to go in terms of the franchise and it will be interesting to see what some of the other bidders offer."

City of York MP Hugh Bayley said he would support the bid, adding: "I will be backing this bid because the existing GNER management team will add a continuity and stability to the service both for their staff and for passengers.

"GNER has an unrivalled reputation for providing a high-quality service, attracting additional passengers and putting on additional trains. I want that approach to the franchise to continue which I feel sure it will through their partnership with Stagecoach and Virgin."

If successful, GNER would take a ten per cent stake in the new franchise while Virgin and Stagecoach would share the remaining 90 per cent.

Mr Hyde said: "We want to shape the future of the railway beyond the life of our current management contract. This is a fantastic opportunity to do so with some strong and proven partners. It will be a tough competition and we are taking nothing for granted, but we are delighted to be in the race."

The other short-listed bidders are National Express, Arriva and FirstGroup.

The deadline for bid for the franchise is June 6 and a decision will be made by the Government in the summer.

In a joint statement, Stagecoach Group chief executive Brian Souter and Virgin founder Sir Richard Branson said: "We now have an even stronger team developing our bid for what is one of the UK's flagship franchises and we look forward to working with the GNER team on our plans."