I should imagine that there’s a palpable sense of relief in Cardiff, Wales. Cardiff Bus had apologised at a recent public inquiry following a critical OFT report into the way in which it dealt a blow against former competitor 2Travel.
It appears it wasn’t mere coincidence that a Cardiff Bus no-frills service came and went at the same time as 2 Travel. The Welsh traffic commissioner accused Cardiff Bus of serious misconduct and that it came close to losing its repute. But there was no revocation that comes with such a loss of repute and no suspension or other punishment. The OFT report a year earlier exacted no punishment, either.

Cardiff now
What the OFT report made clear was that this was the first time ever of findings regarding illegal predatory actions. This in itself would normally lead to a loss of good repute and a consequent revocation, said the traffic commissioner.
What probably saved Cardiff Bus was a general level of ignorance within the industry as to what was and was not an acceptable reprisal. Given the OFT report and the high profile inquiry, it’s unlikely a traffic commissioner would be so lenient in the future.
Those outside the bus industry will fail to understand what almost losing your repute actually means. It’s extremely serious, especially for a large and heretofore respected operator.
There’s a balance between acting to protect your business and being seen as predatory. Perhaps this balance is now almost impossible to achieve. Medium and large operators would do well to take the advice of the Welsh traffic commissioner and study the Cardiff Bus OFT report carefully. Bed time reading.
Those who feel that Cardiff Bus were let off the hook might wonder what would’ve happened had the traffic commissioner revoked its licence, grounding all 250 buses...

5 comments:
can one post a link to the OFT document you mention? can't wait to get under the covers and give it a read!
http://www.oft.gov.uk/shared_oft/ca98_public_register/decisions/cardiffbus.pdf
Aren't the financial penalty provisions available to the OFT pretty useless against a member of a large group's bullying of a small operator?
More relevant still, at which point precisely does a smaller operators piracy cease to be fair competition and become predatory?
Fair's fair when you've a decent interval between services (good for customers but rare in my experience), but what when it's the smaller latecomer who registers 2 to 3 minutes before the longstanding scheduled departures and hogs the stands?
Despite being cited in at least three competition hearings (to my certain knowledge) this, perhaps awkward truth, has never been properly addressed...(Look, with hindsight, at some of the stunts UK North were pulling in Manchester)...perhaps it is the rather british tradition of undue sympathy for what is perceived to be the underdog?
A predatory competitor does not have to take much of the traffic to cause irreparable damage to a typical network...just the (comparatively small) profit margin on the key routes...
May I ask when 2 Travel came into existence and when they became defunct. Also, did they compete with Cardiff bus the whole time?
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