I've been unable to figure this out. It's beyond stupid to be honest.
If the franchise changes and I do say IF as I haven't a clue, it will be first time in 20 years, as stagecoach have held it for the whole time (barring the 1st year I think).
The Waterloo upgrade work is being touted as the biggest project for the swml in decades and the publicity about the partial closure of Waterloo (swt hub and busiest station in country for passenger numbers) in August has been advertised for a while.
Who on this earth thought combining the two events was a good idea?????
Stagecoach were offered a 6-year franchise extension (direct award) to cover the upgrade period, but did not like the terms.
So they terminated their own franchise and it went to open competition.
If they win, they will have it on better terms than DfT originally offered.
They are evidently prepared to lose to First/MTR, if the price is not right.
The upgrade situation turns the pressure on to DfT (and potentially First/MTR), not Stagecoach.
I'd say it was good negotiating.
On top of that, the rescheduling of franchise competitions to fit in SWT extended the Virgin West Coast franchise (49% Stagecoach-owned) by 2 years, and now opens up the combined ICWC/HS2 opportunity.
Stagecoach won the initial South Western franchise, in Feb 1996.
It's the longest unchanged franchise ownership (Virgin West Coast was let a year later).