TRAIN company GNER has started court proceedings against rail bosses after they gave the go-ahead for a rival operator to run trains on its route.

The company, which is based in York, is seeking a judicial review against the Office of Rail Regulation after it awarded Grand Central Railway (GCR) access rights to operate passenger trains on the East Coast Main Line.

GNER is challenging the regulator's decision on the basis that it is discriminatory, amounts to an unlawful grant of state aid, is a distortion of competition and is in contravention of European Community and national law.

An application to the High Court has also been made for expedition and it is hoped that the judicial review hearing will take place in July.

GNER believes the decision is unlawful and creates unfair competition, in that Grand Central Railway would not pay either the fixed track access charges or premium payments that GNER pays under its publicly-specified franchise contract, which was awarded by the Government after costly competition.

The train company is also challenging the need for GCR to stop at York, which is already served by 61 trains a day to and from London, when GCR's stated goal is to create a new rail market between Sunderland and London.

A GNER spokesman said: "We welcome competition as it encourages us to keep improving, but competition should be on a level playing field."

The Office of Rail Regulation (ORR) said last night that it had received papers relating to the court proceedings.

A spokesman said: "We will vigorously contest these proceedings."

The ORR announced in March that it had decided to approve access rights for three new daily direct services each way between Sunderland and London and operated by GCR.

The services will provide direct journeys to London from Thirsk, Northallerton, Eaglescliffe and Hartlepool.