Whoever runs the XC▸ franchise will need as subsidy. It is arguably the most important franchise in the country because it 'glues' the rail network together and if anything needs expanding to include more routes.
I stand by a previous post that I made in this forum and believe that XC is a drain on the Taxpayer! It should have been disbanded and split between other operators, more government money for other improvements then.
The problem with all other main line operators is that they favour routes to London and forget about the rest of the country.
Virgin XC virtually tripled the customer base during their tenure. Their franchise agreement with the government included a significant subsidy to improve the service by replacing poor rolling stock and adding routes. This they did, and should not be criticised for it.
Finally, the government has decided to to reduce the subsidy to zero, and Arriva have agreed to run the franchise on that basis, and to increase capacity. It will be interesting to see if they can do it!
