The company, led by chief executive Richard Bowker, is attempting to resolve an impasse over the future of services on the east coast main line. National Express took over the service from Great North Eastern Railways (GNER) 18 months ago, and must now make large premium payments to the government just as recession bites.

National Express said at its recent results that it had opened talks with transport officials over the future of the franchise. With the government concerned not to set a precedent of bailing out train operators, Lord Adonis, the rail minister, is said to have rejected the company’s request for a reduction in the premiums or other assistance.

The transport group must pay the government £87m this year, and £140m next.

Government sources say a new proposal from National Express was expected this week, but the company would not give details.

It is understood the proposal will tackle the wider issue of train operators caught out by recession, rather than the specific east coast problem.

“They need to convince the government that it would be cheaper and less disruptive to renegotiate the franchise rather than scrap it and relet it,” said one industry source.

Analysts say the resolution of the east coast issue is vital to National Express’s future.