Troubled Times

First Devon & Cornwal's managing and engineering directors have departed, following the subsidiary's poor performance, according to Plymothian Transit. The former MD remains with First in another role, however.

First's south western bus operating division - the old Western National, and the North Devon Red operation acquired in 1999 - has seen a rather difficult 2005.

As reported on Omnibuses, Transit Magazine was unimpressed with the financial performance, seeing 2004's losses almost doubled in 2005. Even before that, operating profit margins were no higher than 6.6 per cent in the preceding three years.

Then there was a period of industrial action by drivers over pay. In spite of a number of ACAS visits, this took several months from March to August - and strikes - to resolve.

As the former MD said then, "We need to balance the desire of our customers for low fares and the changing nature of the rural bus market, with maximising our offer to our staff." How difficult that is, in a sparsely populated area.

Then there were network pressures, in Plymouth, with First forced to reconsider the withdrawn direct link on service 7 to Derriford (Acute) Hospital, in September. There followed in January what the public felt was a hefty fares increase. First's Devon & Cornwall day ticket is £6 and that for all of Plymouth up to £4.50. Monthly tickets for Cornwall sell at £80 and for Plymouth, up to £60.

This is not the first time that directors and managers have left First Devon & Cornwall "for failing to achieve what most others in the industry consider to be impossible."

One former MD, who left in 1997, set up one of England's best known independents, Cornish bus operator Western Greyhound. Other former managers set up Truronian as early as 1987, an equally successful and in fact award-winning operator, with 62 PSVs plus 25 taxis and a turnover of £7.5mil. Truronian's policy is to employ and train long term unemployed people.

In spite of network trimming and even garage closures, designed with viability in mind, matters appear worse rather than better. As Transit said earlier this month, "The prospect of increasingly sparse services operated by a hand-me-down fleet of elderly and by definition more polluting vehicles hardly constitutes a recipe for success... Perhaps it is time for losses to be cut and territory to be surrendered: however painful a decision this might be, it is surely better than drifting from one crisis-driven round of cuts to another, shedding scarce management talent on the way."

Of the management changes, First commented, "We must continue to improve reliability and punctuality to meet the travel needs of our customers in Devon and Cornwall by offering quality services that are both sustainable and profitable."