A train company which put in a bid to run a direct service from Shropshire to London has had its application turned down by rail regulators.

Arriva Trains Wales had wanted to operate a service between Aberystwyth and London Marylebone which would have also called in at Shrewsbury. But the Office of Rail Regulation has announced it has rejected the firm’s application to run the two daily direct services to the capital.

The news has been welcomed by an MP who had campaigned against the track access agreement, which would have rivalled a service offered by fledgling train company Wrexham & Shropshire.

But Arriva Trains Wales said it was “extremely disappointed” by the decision.

The ORR said the decision was made based on two key considerations – the operational feasibility of the proposal and the economic case.

A letter from the regulator states: “Whilst we concluded that the proposed new service was operationally viable, we also concluded that the economic case for the service was not sufficient to justify approval.”

The regulator said it had a long-standing policy of not approving rights to new competing services that are based on revenue and not economic benefits. which it called “cherry-picking”.

The letter states: “We have assessed the business case put forward by ATW and remain concerned about the financial viability of the proposed new service.”

Wrekin MP Mark Pritchard today welcomed the decision. He said: “This is good news for rail passengers.

“Arriva Trains Wales approach was possibly more about killing competition than providing a new and quality service to London.”

The news has also been heralded as a “victory for common sense” by Andy Hamilton, managing director of Wrexham & Shropshire, who said the decision would give it time to develop the “best possible” service for Shropshire passengers and ensure four daily direct services to London remain.

Katrina Tzannis, a spokeswoman for Arriva Trains Wales, spoke of the firm’s disappointment at the decision.

She said: “We believe that a direct rail link to London would boost the economy and tourism in Mid Wales and Shropshire, providing valuable additional services to local people.

“Aberystwyth will remain one of the few towns left in Britain without a direct link to the capital after the last link to London was withdrawn in 1991.”

By Emma Kasprzak