One phrase in Preston Buses’ Peter Bell’s closing statement as news spread yesterday that his employee-owned Preston Bus had officially sold to Stagecoach summed up the reason why now is a good time for a smaller operator to sell up… an uncertain future.
Bell cited recession, BSOG, the uncertainties of the Local Transport Act and free travel reimbursement issues. Quite a list of issues.
And he might’ve added (but wisely didn’t) aggressive competition from the new owner of his business.
The deal was accepted by shareholders on Thursday and completed yesterday. Inter-availability of tickets begins on Sunday and, no doubt in eight weeks or so, we shall start to see changes that will rationalise and integrate both networks in a sustainable fashion. Or, if you prefer, offer a reduction in service and competition. As to which will be best for passengers depends upon your view. But this sort of scenario worked in Brighton.
One of England’s most bitter bus wars is now officially over. There’s no doubt who won. Preston Bus shareholders can also claim some victory among the sadness, as they are likely to receive significant windfall payments. They’ll need to complete a self-assessment tax return in due course. Drivers and fitters can also enjoy a two-year no compulsory redundancy promise.
Said Stagecoach, “We are delighted to have acquired Preston Bus, which is a well-run business that is an excellent fit with our existing operations.” Excellent fit? You betcha.
Meanwhile, nothing’s appeared on the Preston Bus website though the news reached Stagecoach’s, yesterday.
Saturday, 24 January 2009
Sold—Official
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3 comments:
prestonbus didnt sell up from the competition they had from stagecoach,it was from other factors,,stagecoach only carried many customers on route9 parallel to the number 16 route that prestonbus operated,,prestonbus had a lot of non driving staff,,theres a lot more to it,,
Preston Bus were supposedly surviving only on a large Bank overdraft, which the bank could have called in at any time.
Two years of competition with Stagecoach evidently achieved what the PLC wanted . . .
Preston Bus became loss making in the year 2005/6, 12 months before Stagecoach began its network. So its operations were costing it more than the income it received, a year before Stagecoach started.
Stagecoach offered to buy in 2006, and those shareholders would have made more money then. Given that rejection, one can't blame Stagecoach for registering a network when the incumbent could have failed, leaving the way open for someone to undermine its Preston depot.
I am pleased to see that the customers have voted with their feet and seen to the demise of Preston Bus, who are one of the most customer unfriendly operators in the country.
If you consider that the 16 (my route at the time) was the neglected route, and Stagecoach offered something different, such as low floor buses and change on its services, with polite drivers this poster voted with his feet and used Stagecoach.
Preston Bus only have themselves to blame for their current situation, just like a shop which offers poor service finding it has no customers!
Why persist with the outdated idea that you must pay an exact fare to travel with drivers who care only about extending their tea break and don't give a monkeys about the people paying their wages?
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