YORK'S rail companies have declared a need for balance after Government watchdogs proposed a scheme to ease train overcrowding by cutting the number of first-class seats.

GNER, TransPennine Express, as well as the York and North Yorkshire Chamber of Commerce, said the challenge was to ensure provision for first-class and business travellers while ensuring commuters were also given the best deal possible.

The firms were commenting after the Strategic Rail Authority (SRA) said peak-time congestion routes into London Paddington could be trimmed by a reduction in expensive "premium accommodation" and converting it into standard-class.

Reports said the SRA's view was that any loss in revenue for rail companies would be swallowed up by the expected rise in passenger numbers over the next 12 months.

But GNER and TransPennine Express both reiterated their commitment to their business passengers and said it was about finding a balance while reducing overcrowding.

Dave Mallender, PR spokesman for TransPennine Express, said: "We believe there is a market for first- class travel and our new trains will have a number of first-class seats on board.

"This is an interesting development, but we will certainly continue to keep up our first-class provision. It's about creating a balance.

"We are trying to serve our urban business travel network, but we are also committed to our regular commuters."

GNER spokesman John Gelson said: "The challenge for GNER is to manage demand by maximising available seating capacity on our trains, while continuing to offer quality on-board service and comfortable travel. GNER's success in managing supply and demand has been driven by the introduction over the past year of a new automated revenue management system - the only one of its kind in the UK rail industry.

"The result is that we've managed to attract more price-sensitive but less time-critical passengers on to our less busy trains, without increasing overcrowding. That has increased passenger satisfaction."

Len Cruddas, chief executive of York and North Yorkshire Chamber of Commerce, said the key was for improved investment in rolling stock - something which has already been ruled out on the new East Coast Main Line franchise from April.

"I can understand what they (SRA) are trying to do and it is for the very best of reasons," he said.

"There is clearly a demand for first and business class travel and many people want to be able to work on the train - a viable alternative to the car.

"We need investment in infrastructure and capacity as well as continued investment in rail stock. There are demands for both types of service. You may want to improve one, but you will damage the other."

Updated: 11:20 Friday, January 14, 2005