VIRGIN Trains has lost the franchise for the West Coast Mainline through the town.
From December trains to and from the capital will be run by First West Coast Limited.
The new operator has pledged to provide more seats and cheaper fares.
From 2013 there will also be with more services and better station facilities, said the firm.
Rail minister Theresa Villiers approved the 13-year, £5.5billion deal yesterday (Wednesday). There is an option to extend it by 15 years.
Virgin held the franchise since 1997.
"This new franchise will deliver big improvements for passengers," said the minister.
"Targets to meet on passenger satisfaction will be introduced for the first time in an InterCity rail franchise and passengers will also benefit from smart ticketing and from investment in stations.
"The West Coast is the first of the new longer franchises to be let by the coalition which has helped us secure real benefits for passengers by encouraging First West Coast Limited to invest in the future of the service."
Virgin Group founder Richard Branson said he was extremely disappointed with the decision.
"Our amazing staff have been the driving force behind the West Coast Main Line’s transformation and I am sure for the last months of the contract they will all continue to run the high quality service that has helped win us many awards and attract millions more customers to rail."
Rugby MP Mark Pawsey has expressed concerns at changes to the West Coast Mainline.
A LEVEL students across the borough were looking
A MINI enthusiast is hoping CCTV he installed
DETECTIVES are appealing for help finding a man
POLICE are urging witnesses to an early morning
A MAN who died after being hit by a car ...
THE LAUNCH of the Solihull Jazz and blues festival has ...
THE case against a retired police officer charged with the ...