GNER'S future could hang in the balance if a rail watchdog pushes through plans to redraw the franchise map, the Evening Press can reveal today.

Industry sources are speculating that the York-based firm could be gobbled up if Strategic Rail Authority (SRA) moves to cut the number of train companies operating on Britain's railway network are forced through.

The SRA recently awarded GNER a two-year extension to its current franchise, taking the Station Rise-based firm up to 2005. The Evening Press supported GNER's efforts to secure a 20-year franchise with the Back The Bid campaign.

The deal, which would have enabled GNER to invest in a huge amount of new rolling stock, was blocked last summer by Transport Secretary Stephen Byers.

The SRA has now confirmed it wants to reduce the number of train operating companies (TOCs) running services.

And the Evening Press understands that should the current franchise system be changed, big rail operators which run multiple franchises - such as Stagecoach and National Express - would be the main beneficiaries.

An industry insider said this could be at the expense of GNER which, while running a successful operation on Britain's flagship East Coast Main Line, is a small company in comparison.

"There is a view that if the SRA tries to cut the number of franchises, or the number of companies running franchises, then firms like First Group, Stagecoach and National Express all have three or four operations," the source said.

"GNER has only one. It is not a big player. If the SRA wants to cut the number of operators then you could see a combination of GNER with, for example, Midland Mainline.

"If it is the number of franchises, then we could see some merging of areas, again with fewer operators."

York MP Hugh Bayley said today he would be astonished if GNER lost out through the reduction of franchisees, which he supported.

"I would see GNER as one of the strongest contenders to remain."

An SRA spokesman said: "We would like to see reductions from the current number of 25.

"The implications of this will be different for different parts of the country.

"Obviously, if you reduce the number of franchisees then the network could be dominated by a small group of players. But that will not necessarily be the outcome.

"As far as GNER is concerned, there will come a point where we will have to re-let the franchise.

"It will be a proper bidding process, and if GNER continues to make improvements, I am sure that would stand it in good stead."

GNER company spokesman David Mallender said: "We have got a good track record.

"We were able to extend our existing franchise. Our aim is to be around for the long-term to invest and improve services for passengers."

Selby MP John Grogan said: "It has become the fashion at the moment for the SRA to aim to cut down on the number of franchisees. I am sceptical about the effect of this. I would strongly oppose any moves that could see GNER disappear."

Updated: 11:56 Wednesday, February 13, 2002