THE future of one of the mainline train operators could hang in the balance if a rail watchdog pushes through plans to redraw the franchise map, it was claimed yesterday.

Industry sources are speculating that York-based GNER could disappear if Strategic Rail Authority plans to cut the number of train companies go ahead.

The SRA recently awarded GNER a two-year extension to its franchise, guaranteeing the company's future up to 2005.

But the authority has now confirmed it wants to reduce the number of train-operating companies running services from the current 25.

And that could be at the expense of GNER which, while running a successful operation on Britain's flagship East Coast Main Line, is a small company in comparison with operators with multi-franchises, such as Stagecoach.

"There is a view that if the SRA tries to cut the number of franchises, or the number of companies running franchises, then firms like First Group, Stagecoach and National Express all have three or four operations," said one insider.

"GNER has only one. It is not a big player. If the SRA wants to cut the number of operators, then you could see a combination of GNER with, for example, Midland Mainline."

An SRA spokesman said the implications of a reduction would be different for different parts of the country.

He added: "As far as GNER is concerned, there will come a point where we will have to re-let the franchise. It will be a proper bidding process, and if GNER continues to make improvements, I am sure that would stand it in good stead."

A spokesman for GNER said: "We were able to extend our existing franchise. Our aim is to be around for the long-term to invest and improve services for passengers."