UNDER-fire rail firm Connex is still in the running to operate services through York - despite being stripped of its south-eastern franchise by rail watchdogs.

Connex may still win the prestigious Transpennine Express (TPE) franchise, even though its London, Kent and Essex operation was terminated by the Strategic Rail Authority (SRA).

The SRA stripped Connex of its southern empire after claiming it had failed to meet a detailed programme of improvements.

But chiefs at the Government-backed body today said their actions would have no impact on who would run TPE services, between Newcastle through York to Liverpool and Manchester Airport, when the winner is announced later this year.

Connex is bidding for the TPE service in competition with First Keolis SA. Trains will start running at the end of this year.

An authority spokesman said: "The decision we have made is about the financial management of Connex South Eastern. It is not a decision about other franchises and we haven't made a decision yet on TPE."

Today a Connex spokesman said the company was shocked by the SRA's announcement. "While we acknowledge the decision, we strongly disagree with the reasons behind it. We are considering all our options."

Chief executive Olivier Brousse said "I am shocked by the SRA's decision, most particularly for our staff who worked tirelessly to run this railway as best as they could. I assure our passengers that we will work very hard, until the last minute, to run the best service we can."

Ernie Preston, secretary of the York Rail Passengers' Committee, said Connex was not the worst operator in terms of commuter expectations.

He said: "They are running an extremely dense service, but four out of five trains do still run on time.

"I think in terms of what the passengers experience on trains, Connex is not the worst operator."

Updated: 09:41 Saturday, June 28, 2003