TRANSPENNINE Express will not have its contract renewed at the end of this month.
Ministers at the Department of Transport today announced they will take the rail line in the North of England and Scotland into government control.
It comes after months of TransPennine Express consistently cancelling services or running extremely late, causing mass and infuriating disruption to passengers.
The government says it intends to return the line to private sector, but until a new operator is found it will run the service.
Ministers warned government ownership won't result in improved timetabling and reliability over night.
But they said it should provide a chance to "reset the relationship" between the operator, staff, trade unions and commuters.
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Transport Secretary Mark Harper said: "In my time as Transport Secretary, I have been clear that passenger experience must always come first.
"After months of commuters and Northern businesses bearing the brunt of continuous cancellations, I’ve made the decision to bring TransPennine Express into operator of last resort."
While under government control services will continue running as normal, with no changes to ticket prices, timetables or planned services.
DfT has also launched a review into rail services in the north to improve reliability and efficiency after months of complaints.
Mr Harper urged northern mayors and Transport for the North to contribute to the review.
The Transport Secretary also hit out at rail union ASLEF for preventing drivers from taking on overtime shifts.
He argued this, alongside ongoing strike action, was partly to blame for the dismal services experienced by commuters over the past few months.
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Mr Harper said: "This is not a silver bullet and will not instantaneously fix a number of challenges being faced, including ASLEF’s actions which are preventing TransPennine Express from being able to run a full service – once again highlighting why it’s so important that the railways move to a 7-day working week.
"We have played our part, but ASLEF now need to play theirs by calling off strikes and the rest day working ban, putting the very fair and reasonable pay offer to a democratic vote of their members."
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