Virgin Trains East Coast, a joint venture between Stagecoach (90%) and Virgin (10%), won the eight-year franchise to run services between London and Edinburgh in 2014.
Transport Secretary Chris Grayling told Parliament that temporary state ownership would provide the smoothest transition to a new operator.
She said: "Three times in less than a decade, the government has been forced to intervene in the East Coast rail franchise".
The government said on Wednesday it was scrapping the contract with London-listed Stagecoach STG.L five years early and would operate the line, which carries 22 million people annually, for 2-3 years before setting up a new public-private partnership.
Despite this, Grayling denied it was a "failing railway" and insisted taxpayers had not lost out, claiming "the route continues to generate substantial returns for the Government".
The Rail Delivery Group, the industry body for Britain's railways that includes state-owned Network Rail, pointed out today that Virgin Trains has invested more in the two years in which it has operated the route than DOR did in its five-and-a-half years running it.
Despite the firms now avoiding up to £2bn in premium payments after the failure of the franchise, Grayling said "it would not be reasonable to place conditions" on Stagecoach or Virgin bidding for further rail services.
Virgin Trains East Coast (VTEC) is the third private operator to fail to complete the full length of a contract.
Stagecoach and Virgin Trains got their bid wrong and they are now paying the price.
McDonald pointed out that the government had failed to impose restrictions on what Virgin and Stagecoach could do next, calling the statement "a smokescreen to divert attention from the failings of his policy".
The government is set to renationalise the East Coast mainline, one of Britain's busiest railway lines. He reiterated that, as the proposed East Coast Partnership contractual structure evolved, the ECML infrastructure would remain in the hands of the public sector via NR.
Stagecoach Group Chief Executive Martin Griffiths said he was "surprised and disappointed": "We will work constructively with the DfT and the OLR in the weeks ahead to ensure a professional transfer to the new arrangements, supporting our employees and maintaining the same clear focus on our customers as we have over the past three years".
He added when the franchise "was run it the public sector, it returned more than £1bn to the Treasury".
In Niskayuna, voters approved a budget that lifted the local tax haul by 2.64 percent, with 1,186 in support and 525 opposedt. The residents were asked to vote on a $99.3 million budget, which was an increase from last year's budget of $96,818,467.
But the real way that Boston was able to impact Cleveland's offense was through solid execution on their own offensive end. The Boston Celtics appear ready for just that. "We've got a different team, just like they do, and a lot of younger guys".
Chico, Calif .- An audio clip is tearing the internet apart, with people fighting over whether they hear " laurel " or " yanny ". Pristine studio headphones will give you a Laurel , while a tinny 2015-era cell phone is probably going to give you Yanny .
Such benign tumors often have no symptoms and are often found when people get medical scans for another reason. Separately, a former Playboy model has revived her allegations of a 10-month affair with Trump, also in 2006.
Actors (also) culpable", said American entertainment reporter Roger Friedman , while another who left tweeted , "Gross. Despite the controversy, the film still received a standing ovation from those who stayed until the end.
His decision comes on the heels of similar retirements by fellow greats Cooper Cronk and Johnathan Thurston late past year . Brandon Smith, utility Joe Stimson and youngster Harry Grant are likely in the running to fill Smith's shoes.
The average revenue per user of the company declined by 26 per cent to Rs 105 from Rs 142 during the quarters under review. India's objections to jurisdiction and the company's claims are scheduled to be heard together in February 2019.
Amazon Alexa developers get eight new voices
More recently, Amazon launched the " Remember This " feature for Alexa, essentially giving the virtual assistant a memory. Amazon has released a new developer preview that essentially lets Alexa skill developers add a new voice to their skills.
David Moyes Leaves West Ham
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Total halts $2 billion gas project in Iran
Joe Kaeser, the CEO of Germany's Siemens ( SIEGn.DE ), told CNN his company would not be able to do any new business with Tehran. In a deal first signed in late 2016, Total agreed to operate the South Pars project with a stake of 50.1%.
Children said they had punctures, burns
Officers responded to the home and discovered the apparent abuse when the children's mother, Ina Rogers, called 911 on March 31. She said the "squalor" officers saw while investigating came from her tearing her house apart as she searched for her child.
Mom stabbed daughter, abducted 7-year-old
They fear the little girl is in serious danger, and issued an Amber Alert after the attack took place Monday night, reports KOCO. An Amber Alert says Ahmad may be driving a black Lexus RX300 SUV with paper tags, a 2011 Ford Escape or a navy blue Ford sedan.
Solo: A Star Wars Story, Soho Square, W1
It's a poignant, intriguing-enough buried subplot that I nearly wished Qi'ra were the star of her own story. Discovering how Han met Chewbacca, or why he made the famous Kessel Run, doesn't make him more interesting.
Robinson Cano Suspended from 80 Games for Drug Policy Violation
Robinson Cano is out six-to-eight weeks after he was hit by a pitch throughout Sunday's recreation towards the Detroit Tigers . Cano's acceptance of the suspension is surely tied to his injury, which may keep him out for a big chunk of that 80-game ban.
Meghan Markle's father not attending royal wedding
They were what one might expect paparazzi snaps of a non-famous person would look like: mundane and, well, a little unflattering. Kensington Palace did not confirm that Mr Markle would be missing the wedding, but issued a statement asking for understanding.