Who won: Operating Lease Agreement in relation to a fleet of class 350 electric multiple units and associated equipment

About this contract

Direct Award of a 16-year lease of a fleet of 37 Class 350/2 electric multiple units to replace the current Class 323 electric multiple unit fleet which Northern Trains Limited ("Northern") lease and operate on the Northern Network, primarily in the Greater Manchester area. The lease includes an ability for Northern to break the lease after 8 years (in August 2034) where the rolling stock fails to meet performance targets in respect of reliability and availability. As part of the leasing of the class 350 fleet, Northern have also agreed with the lessor that the lessor will agree to the termination of the lease by the same lessor of a fleet of 34 class 323 electric multiple units early, allowing the class 350 fleet to be substituted for the class 323 fleet without any increase in subsidy required to Northern to enable leasing of the class 350 fleet. The lease makes provision for sub-leasing of the rolling stock to other operators in specified circumstances under the lease, either on a short-term basis (under 48 hours) or on a longer term basis with consent. The lease also permits the assignment, transfer, novation or disposal of all of rights and obligations of the lessee under the

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