Rail operator Avanti West Coast’s contract has been extended for a further six months following improvements, the government said.
The company was previously heavily criticized for reliability and punctuality, and called for losing the franchise.
Avanti scaled back services and ticket sales last summer amid a staff shortage.
The Department for Transport said his contract would now run until October 15.
Avanti’s current deal was due to expire at the end of this month after he was granted a temporary six-month extension last October and urged to urgently improve.
The operator, which runs trains to Liverpool, Manchester, Birmingham, North Wales, Glasgow and Edinburgh, cut its timetable last summer after drivers stopped working overtime and passengers suffered from widespread disruption.
The government had warned the company that their contract could have been withdrawn.
Transport Secretary Mark Harper said: “The routes that Avanti operates on the west coast are absolutely vital and I fully understand the frustrations felt by passengers at the totally unacceptable service last autumn.
“Following our intervention, Railway Minister Huw Merriman and I have worked closely with local leaders to put together a solid plan which I am glad is working.”
Avanti’s parent company, First Group, said the current agreements had been renewed “on broadly the same terms”.
Chief Executive Graham Sutherland said: “We are working closely with the Government and our partners across the industry to deliver a successful railway for our customers and communities.
“Avanti’s performance is steadily improving and since the launch of the new timetable in mid-December, the number of connections has increased by more than 40% compared to last summer, with more seats and better frequencies.”
A new, busier schedule was introduced in December. Earlier this month, the transport minister said Avanti had delivered better service on weekdays.
More than 5% of Avanti’s services were canceled in the four weeks ended March 3rd, versus 10.5% in the four weeks ended February 4th and 18.9% in the four weeks ended January 7th.
First Group also said that a new chief executive officer has been appointed for Avanti, Andy Mellors.
The previous boss left last September.
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