Chester Case Dismissed

It’s difficult to see how the judge in his 41,000 word ruling on the Chester Council v. Arriva case could’ve done anything other than favour Arriva. To do otherwise seems to fly in the face of the Transport Act 1985 and the freedom enshrined therein to register commercial services at will.

Even so, the judge felt that in spite of Arriva’s views to the contrary, the registration of services constituted an "unsubtle" bus war, concluding that the services in the first year would likely run at a loss. But the judge's key decision followed the city council's failure to established satisfactorily that Arriva held a dominant market position.

The city council felt by challenging Arriva it was safeguarding as best it could the sale of its arms-length bus operator. Instead, it has ratcheted up its own and Arriva's costs of £2mil plus what it states is £72,000 owing to Chesterbus’ delayed sale.

What are the prospects of a sale, now? We'd suggest that the price will undoubtedly be denuded, owing to uncertainties. It seems likely that Arriva in having spent time and trouble in court will wish to start the two key Chester competitive services it planned originally for January. If they go ahead, such services that will weaken Chesterbus. But this may also benefit Cestrians with more choice and better quality vehicles.

If the council has a purchaser up its sleeve. Who might that be? Stagecoach or First, perhaps? Transdev or Veolia? In February, we favoured First. Although this is speculation, we suspect that the competition authorities would be content with this. There remains Arriva in the area, even if it doesn’t continue with its Chester putsch. The judge was happy enough that Arriva’s market position wasn’t dominant. And there’s a handful of smaller independents, including a relatively large one recently gaining some hourly council tenders in Chester, Northwich, Ellesmere Port and even Runcorn.

If it’s either Stagecoach or First, will there be repercussions on Merseyside? Stagecoach operates quality v. quality from Gilmoss. First runs from a garage near Birkenhead. Both sites could accommodate more vehicles, at need. Could Arriva lose more on Merseyside that it could gain in Chester?

i Additional information by Omnibuses' Northern Correspondent