Troubled rail firm Arriva Trains Northern will fight to continue to run services in the district for another 15 years, its managing director vowed today.

Euan Cameron pledged Arriva would bid to renew its franchise to operate trains across the north-east as passengers faced another day of crippling strike action.

Conductors represented by the Rail Maritime and Transport workers' union (RMT) were today due to walk out again in protest at the four per cent pay offer tabled by Arriva and services across the district were cancelled.

But a defiant Mr Cameron promised passengers the dispute was nearing an end and claimed strike-weary conductors were ready to break the picket line - a claim denied by the union.

"This is going to be resolved," he said. "About 70 conductors have already come back to work and that is a very brave decision from them. But I expect more to come back and I think that will force the union to come back to the table."

Arriva claims striking conductors stand to lose £2,500 each from their pay packets if they go through with the remaining seven months of walkouts.

And Mr Cameron said the on-going industrial dispute had not forced Arriva to abandon its hopes of continuing to run services in the region when its current franchise expires in February 2003. It has already placed a bid for the new franchise which will last for a period of 15 years. A new transpennine franchise for longer distance services through Yorkshire is also up for grabs, with Arriva already on a shortlist of three firms.

Stan Herschel, regional officer for the RMT, said Mr Cameron's claim that 70 of the union's members would cross the picket line was "rubbish".

"My estimate is that there will be 30 of our members who will be going to work today. The resolve is very good and the indication is that there is a solid base."

Arriva was expecting services to operate on 75 per cent of its network today and during another strike on Saturday. Customers were advised to check before they travel by calling 0870 602 3322.