THE boss of a rail operator which wants to run new train services from the North-East to London last night hit back at his critics.

York-based Grand Central Railways (GCR) hopes to run four trains a day from Sunderland, Hartlepool and Eaglescliffe to London.

It has faced opposition from train operators such as GNER, which fears its profits would be hit by as much as £380m if the plan is approved.

The Strategic Rail Authority has also described GCR's bid as a "nonsense" and said it would cost taxpayers extra money by eating into the income of other operators.

GCR managing director Ian Yeowart said: "We are disappointed at the response from colleagues in the industry.

"Some of the things people are saying are a bit of a slur on people in the North-East who are living in communities with no rail services.

"They have every right to be indignant at this hoary old chestnut that we will cost the taxpayer - an argument which completely ignores the fact that all our rivals operate at a profit.

"GNER in particular make handsome profits on their route and have done from day one."

Mr Yeowart added: "Train operators' short-term views about their own profits position should not be the overriding factor in deciding whether 1.5m people living in Sunderland, along the Durham coastline and in Hartlepool and Middlesbrough have a direct rail link to the capital."

The Office of Rail Regulation, which is considering GCR's application has begun a detailed economic appraisal of the planned East Coast Main Line services and those already run by operators GNER and Hull Trains.

This is expected to take until the end of the year to complete, with a decision on the bid being announced early next year.

Asked about whether the bid would succeed, Mr Yeowart, who says GCR will attract substantial numbers of new passengers and operate commercially without subsidy, said: "We are trying to remain optimistic."