TRAIN operator GNER could bid for a "superfranchise" to run every train service into London King's Cross, an influential group of MPs has been

told.

The expansion plan would see the York-based firm taking over services run by Thameslink and West Anglia Great Northern.

But, in order to compete for the deal, it will have to shelve an expected bid for a 15-year franchise to continue to operate the East Coast Main Line.

GNER will ask the Strategic Rail Authority to grant a further three-year extension to the current franchise - taking it to 2008.

A GNER spokesman said York would remain as the company's main headquarters - regardless of any expansion in the capital.

The strategy was revealed by chief executive Christopher Garnett at a Westminster select committee hearing.

He said a three-year deal would also allow uncertainty over the upgrade of the East Coast to be cleared up.

The upgrade was placed on hold two years ago, and GNER has complained of a lack of information from the SRA about when it will restart.

Mr Garnett told the Transport committee: ""We are in a good position to go for a long-term franchise. We have the best record of the long-distance train operating companies and continue to provide an excellent service.

"But it is better to go for a franchise where you know what the future is going to be.

"Having gone through the chaos of going for a franchise where no-one knew what the future was, I would rather not do so again."

Originally, GNER had been battling with Virgin for a 20-year deal to run the East Coast. But last year, the then Transport Secretary, Stephen Byers, placed the contest on hold.

Blaming confusion over the upgrade, he instead opted to extend GNER's deal to 2005.

GNER had been expected to reopen negotiations on a long-term deal next year. But Mr Garnett said the situation had now changed.

He said the SRA was now looking at "rationalising" the number of services out of King's Cross and GNER agreed with the principle.

In addition, confusion still reigns over the East Coast upgrade, he said, and the SRA was giving little away.

He added: "Since the franchise negotiations stopped a year ago we have been out of the loop.

"We have asked for information, but we do not have it. The SRA say we are due to get a presentation 'soon'."

A further three-year extension would allow the company to buy up to 12 new trains and get a clear picture of how the upgrade was progressing.

However, he stressed it was not certain the SRA would proceed with the idea of rationising services into King's Cross.

Updated: 11:21 Thursday, June 20, 2002