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"These new GNWR services would have been a step in the right direction, but the rail regulator has ruled that despite there being 'significant passenger benefits' as a result of these new services, the financial case was 'marginal' despite no subsidy being involved.
Mr Whitelegg said it was possible that GNWR will continue to campaign for a better deal when the new West Coast franchise is agreed from 2017.
Sister company GNWR would run trains between Euston, Huddersfield and Leeds, services to Halifax and Bradford and a train to Carlisle via Barrow and the Cumbrian coast.
GNWR's plan had received backing from Network Rail the company responsible for the UK's rail infrastructure as part of the Northern Hub plan.
Ian Yeowart, managing director of GNWR, said: "We are naturally disappointed with the ORR's decision, especially as we reached agreement with Network Rail in May last year that there was sufficient capacity to operate these trains on the West Coast Main Line and across the Pennines.
GNWR has come to agreement with Network Rail on the sale of access rights to begin the operation of two new direct, high speed rail services from the north of England to London Following the period of industry consultation which is now under way and due to finish in early July, the access contract needs only final approval from the Office of Rail Regulation (ORR) so the new trains can be ordered and the recruitment process can begin.
The key features of the GNWR proposal are: Six return trains a day |between London, Manchester Victoria, Huddersfield and continuing to Leeds - starting in 2018.
The GNWR route would offer a journey time of 2hrs 40mins.
Alliance's submission to the ORR calls for GNWR to operate more than 60 trains a day using new rolling stock.
Its final submission for the GNWR includes operating more than 60 trains a day using new rolling stock.
The company headed by Mr Yeowart, a Wetherby-based rail industry veteran, wants to run the trains under the GNER and GNWR banners.
Sister company GNWR would run trains between Euston, Huddersfield and Leeds as well as services to Halifax and Bradford and a train to Carlisle via Barrow and the Cumbrian coast.
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