A Volte-face

Upon hearing the latest from the Competition Commission, I wonder whether First is kicking itself. Withdrawing from Plymouth Citybus sales contest, First has instead ratcheted up its competition against Citybus, to protect First’s market position or to warn off potential competitors. This leaves Stagecoach & Go Ahead in the frame. First’s decision followed both Preston & Eastbourne, where competition authorities felt that incumbent Stagecoach was abusing its market position by buying its competitors.

We now know that in Eastbourne at least, the CC has undertaken a complete volte-face. Here, you will recall, Stagecoach bought both Eastbourne Buses and in quick succession, competitor Cavendish. The OFT felt this significantly weakened competition. It now seems that Cavendish was in even more of a parlous state than first thought and may have ceased. Subject to conditions, the CC’s decision in favour of Stagecoach may yet have a bearing on Preston, where Preston Bus was in some considerable and mounting difficulties, thanks to competition.

So, should First have maintained its interest in Citybus? The difference between Preston, Eastbourne and Plymouth is that Citybus is no lame duck (though First’s competition may yet have a bearing). Citybus has invested and it generally returns a solid margin for the council. It’s incomparable with Eastbourne Buses.

In fact, under-fire Citybus starts its retaliation today, competing on First’s own patch between the city & Plymstock. Leather-seated ADL E200s on the 5/5A unravel the unpopular changes made recently by First.

First’s sale withdrawal means that Plymothians are now denied the advantages of network benefits, investment, stability and economies of scale a monopoly might bring. As a commenter recently mentioned here, if Plymouth council had chosen to sell in 1970, Plymouth City Transport would have gone to First’s National Bus predecessor (as did Exeter). Had it sold between 1993-97, it probably would’ve joined Badgerline/First, in similar moves to Brighton. Monopolistic Brighton is often held aloft as a major post-deregulation success.

But then again, First & particularly First Devon & Cornwall is a somewhat different animal to Brighton & Hove...