GNER was awarded the franchise in 1996

GNER currently operates trains on the East Coast Main Line but a new franchise is being offered by the Strategic Rail Authority (SRA).

The next franchise will run from April 2005 and GNER has already confirmed it wants to continue.

But it will face competition from First Group and Richard Branson's Virgin Trains may also submit a bid.

Tough competition

Christopher Garnett, GNER's chief executive, said: "We are delighted that the bidding process has started.

"It couldn't come at a better time for us, as our improvement programme gathers pace.

"It's likely to be a tough competition, but we are ready for it."

First Group, which will be taking over the Trans Pennine franchise from Arriva Trains Northern, said it regards the East Coast route as "core territory" for them.