The franchise of East Coast mainline was given to a joint venture between Stagecoach and Virgin, the British government announced on Thursday.

The joint venture Inter City Railways will run the route between London and Edinburgh for eight years from March 1, 2015.

The firms promised a 140-million-pound (about 220 million U.S. dollars) investment package to improve trains and stations over those years, and will pay the government 3.3 billion pounds for the contract.

"This is a fantastic deal for passengers and for staff on this vital route. It gives passengers more seats, more services and new trains," said Transport Secretary Patrick McLoughlin.

However, the decision draw some critics from trade unions, as the line has been publicly run since 2009.

"Since being in public hand the line has returned over 1 billion pounds to Treasury coffers and increased its profits. Under public ownership the East Coast has also received record-high passenger satisfaction levels," said Frances O'Grady, General Secretary of Trades Union Congress.

"By privatising the East Coast mainline the government is passing the profits to corporate shareholders, instead of using the cash to reduce rail fares and improve services for passengers," O'Grady added. (1 pound = 1.57 U.S. dollars) Endit

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