HAMPSHIRE rail passengers using Cross Country routes have been promised an improved service as the Government handed Virgin's franchise to a rival.

The Arriva Group beat off three bids to take over the franchise in November, running trains to Reading, Birmingham, Manchester and Newcastle.

The franchise covers about 1,600 miles and calls at more than 100 stations, including Bournemouth, Southampton and Winchester.

Arriva pledged longer trains, 35 per cent more seats on the busiest evening routes and extra luggage space.

Full-price fares are set to rise by an average of 3.4 per cent above RPI inflation.

The Department for Transport (DfT) said it expected increased capacity, better performance and improved customer services.

Rail minister Tom Harris said: "We have secured an excellent deal with Arriva. Not only are they delivering an even bigger increase in capacity than we asked for, they are doing it a year earlier than expected."

Arriva chief executive David Martin said: "Our research has helped us pinpoint important areas where we can improve the passenger experience and make the business more efficient."

Denis Fryer, of South Hamp-shire Rail Users' Group, said: "It all sounds positive."

He said stakeholders were worried direct services beyond Manchester would be axed, but they will be retained as far as Newcastle.

Susan Tibbett, manager of customer watchdog Passenger Focus, said 29 per cent of passengers did not feel they got value for money from Virgin.

She added: "We are pleased Arriva have published a ballpark figure for possible unregulated fare rises but this means some prices may rise by more than 50 per cent over the length of the franchise. This makes it all the more important that affordable, off-peak turn-up-and-go fares are protected."

Virgin Rail chief executive Tony Collins said: "We are extremely disappointed and will be seeking an early meeting with the DfT to understand why we were unsuccessful."