Avanti West Coast has received a short-term extension from the government but has been warned it needs to “drastically improve services”.
The decision will allow it to continue operations on the route until next April, the Department for Transport said.
Avanti came under fire after it reduced the number of trains between London and Manchester by a third in August.
It had apologized for problems caused by the reduced services.
Transport Minister Anne-Marie Trevelyan said the services on Avanti were “unacceptable”.
“While the company has taken positive steps to get more trains moving, it needs to do more to provide service security for its passengers,” she said.
“We have agreed a six-month extension with Avanti to assess its ability to operate this crucial route to a standard that passengers deserve and expect.”
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