The UK Government is to take back control of the National Express East Coast mainline because of falling passenger numbers and rising debt.
The rail franchise is expected to have lost about ВЈ20m in the first half of the year, the BBC reports.
The route is operated by a National Express subsidiary, NXEC, and the Department for Transport (DfT) said that all services could continue.
Existing operational staff would transfer to a new state company set up to operate the route, the DfT said.
National Express has requested for its terms of contract with the government to be negotiated but ministers have refused, the BBC reports.
The government will take over the running when NXEC defaults on its next payment and the route will then be issued out for tender.
