in 1994, backing for regional services had already started to dry up. The British Rail subsidiary European Passenger Services (EPS), which was to undertake Eurostar operations jointly with SNCF of France and NMBS/SNCB of Belgium, took ownership of the 373/2s in 1996 at the same time as it was under the process of being privatised and transferred to London and Continental Railways (LCR) who won the contract to build the CTRL and run Eurostar services. Due to lower than forecast passenger numbers on the inter-capital services, by 1998 LCR was in financial trouble. As part of a new deal with the UK government, in 1998 LCR subcontracted its share of Eurostar operations, via Eurostar (UK), to InterCapital and Regional Rail (ICRR). As part of its bid ICRR stated that regional Eurostar services could not run without government subsidy, which the Department for Transport was unwilling to provide. The only other bidder to operate the UK share of the Eurostar operation for LCR, Richard Branson's Virgin Rail Group, claimed it was willing to run regional Eurostar services at its own risk, however it subsequently informed the UK government that it too saw them as unviable. As part of its contract LCR was not legally required to start regional Eurostar services and by 1999 it was clear that they would not operate. British Rail, via EPS, ran a token domestic service from certain locations around the UK into Waterloo station using HSTs allowing connection with onward Eurostar service between May 1995 and January 1997 but these were ended at the time of privatisation. Reasons given and criticism Whilst officially regional Eurostar services have not been cancelled but are on hold or under review, there are no longer many people who expect them to operate on current lines, although this may be reconsidered if the proposed High Speed 2 line comes to fruition. The most often cited reason given why they have not run is that they are economically unviable in the current climate. The 1990s saw a huge expansion in air travel across Europe with low-cost airlines – a business that had not existed in Europe when the Channel Tunnel was planned – flying from most major cities in the UK to locations on the continent, against which regional Eurostar services, with predicted journey times of almost nine hours for Glasgow to Paris, could not compete. Unlike other international train services within