The new Island Line franchise will run from September 2003 to February 2007 and will be for the continued operation of the existing level of services between Shanklin and Ryde. It follows the announcement last week that the SRA had agreed with Stagecoach the principles of a new South West Trains franchise, also until February 2007.

Nick Newton, the SRA's Chief Operating Officer, said:

"We are pleased to have secured an agreement for the operation of the Island Line until 2007. From this sound base we can continue to explore long term options with the Council, passenger groups and other key stakeholders on the Island."

Graham Eccles, Executive Director of Stagecoach Group, said:

"We are delighted to have reached agreement in principle to retain the Island Line franchise. The agreement includes funding provision from the SRA for work necessary to keep the Island Line operating safely and efficiently for the next four years. We look forward to working with the SRA and Island stakeholders to find a suitable solution for the long term future of the line."