First Great Western (FGW), a subsidiary of FirstGroup Plc, has said that it had agreed a package of passenger benefits to address poor performance in relation to cancellations of train services and the contravention of the Franchise Agreement.

FGW said that the package is worth £29 million and follows discussions with the Department of Transport.

The train operator admitted that its performance fell short of its own expectations and the expectations of passengers, and said that it was committed to improving performance and minimising delays and cancellations.

FirstGroup said it had invested over £200 million in FGW since the beginning of the franchise, and said it would now commit an extra £29 million to deliver customer service and improve performance.

The extra money will be spent on improvements like more rolling stock, customer information systems and on increasing passenger compensation.

Moir Lockhead, chief executive of FirstGroup, said, This additional investment of £29 million will directly benefit FGW passengers and underpins our plans to improve the quality and reliability of services we provide.

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