They say that the reputation of a school rests entirely with the headteacher, and the headteacher alone. And so it may well be with the bus industry.
“They have their views which are absolutely concrete”. So said an unnamed consultant in New Transit. He (or she) was speaking of both Moir Lockhead and Brian Souter, the industry moguls heading First Group & Stagecoach respectively. They’ve been in place for over 20 years and they know what they want. And what they want is reflected in their personalities (or perhaps the other way around).
The article suggests that Lockhead is “old school” is his approach to the recession—economies (or cutbacks). First Group subsidiaries have needed to make a percentage cut in mileage & costs, no matter their overall profitability. Self evidently, this hasn’t been popular with passengers. First Group is also currently seeking economies in merging back office functions, something First Bus director Leon Daniels said recently was easily achievable, using modern technologies and communications, thereby saving costs.
Souter, on the other hand, prefers marketing initiatives and patronage growth to pure cutbacks. This manifests itself in direct marketing, attention to detail and a willingness to take measured risks. Those who either know or have met Souter will understand that he is intuitive and that his “gambles” rarely backfire.
Not that First is always risk-averse—witness FTR though here, its applications are limited and its reception not universally good (though it does seem to generate). By using “Overground” in its major urban networks, First has simplified its networks, to the benefit of passengers and shareholders alike.
It would appear that First is keener on keeping a gimlet eye on engineering costs. Supporters feel that this makes prudent business sense when so much is tied up in semi-variable engineering costs; detractors suggest that it has resulted in one too many public inquiries.
The two groups’ outlooks are certainly different. Which approach is best and healthiest? Is it more prudent to rely on both and is there, perhaps, where Go Ahead and Arriva have their strengths?
Tuesday, 5 January 2010
First & Stagecoach—different approaches
Posted
Tuesday, January 05, 2010
Subscribe to:
Post Comments (Atom)

13 comments:
I doubt that anyone would dispute that Brian Souter is, by far, the one who truly understands how to run a bus company. Moir Lockhead doesn't even get in the same league. You, rightly, highlight that First Group are going down the 'simple' path of cutbacks (regardless of common sense) when Stagecoach are looking at it from the angle of being an opportunity to drive up demand. I know who I'd rather be working for!
Arriva are probably now recognised as looking at pursuing cheaper vehicles from 'new' (to UK) manufacturers and have also been developing more fuel efficiency as well. GoAhead seems to be on the acquisition trail to build on its good 'local image' reputation.
To think that M Lockhead originally felt the bus industry would be immune to the problems of the recession (as I think your blog reported)
Isn't it about time for Moir to retire anyway?
Some fresh blood in First Group wouldn't go amiss - but a great shame that Leon didn't get overall control.
WE see a classic example of First's misguided approach in the Worcester - Evesham - Stratford on Avon corridor. First runs Worcester to Eveshamn. The buses run at irregular intervals with significant gaps in the service with no attempt at marketing. They have made significant service reductions in recent times. Stagecoach now runs double deckers between Evesham and Stratford and has marketed the service and its daytime frequency. The result for them is more passengers. "Simples" as the Meerkat would say!
It would be a little unfair to suggest that First didn't implement service initiatives but what lets them down is how quickly they then seem to lose interest and the good ideas then start to slide, whereas Stagecoach give the impression of continually plugging away and, as you say, attention to detail.
Look at route branding - First appear to design it around the traditional poster advertising spaces, which (a) loses the impact and (b) causes excessive use of the dreaded contravision. Stagecoach, Arriva and Go-Ahead all tend to have simple, clear route branding, usually without the retention of 'normal' advert posters. IMO one or the other is more than enough on the side of any bus.
Finally, First still have a tendency to over 'spin' - witness how the forthcoming (relatively minor) changes in the X80 timetable in Devon, caused by the closure of Totnes depot is being presented as being a result of 'changes in customer demand'.
In Northampton Stagecoach United Counties run a comprehensive town network using new lowfloor MAN's and (not my favourite) - newish Dennis Darts. Most are route branded on high frequencys.
First running the former Northampton Transport over the years have axed route after route running a mix of elderly and shappy Volvo Citybuses, Dennis Lances and Volvo B7's (the ones with the shower cubicle at the rear). Most new buses have been shipped up to Leicester and the service is poor.
Of course, things are a little different down here in Plymouth! Rather than the cuts seen elsewhere, First are actually improving their city services. Can't think why : )
Except of course here have been withdrawals (e.g. Torpoint area) and don't mention Cornwall : (
What are Arriva good at?
At least Arriva ran full Sunday services around Leicester on Boxing Day - commercially.
First Leicester did nothing, as did most other operators outside the largest cities.
Stagecoach did operate on boxing day in Preston, the problem is bus drivers want the day off as well.
If there do work there want triple time at least.
First are shooting them self in the foot, especial with Red Diamond now creeping in, and alot of passenger loving them more.
I also believe the day will come when Stagecoach will operate all the routes in Northampton.
Things will undoubtedly change at First once Moir Lockhead retires.
Personally, I think First are the worst of the big 3.
I live on a route in Sheffield where Stagecoach and First compete.First do run evenings and Sundays,but in every other way Stagecoach offer a better service - lower fares, higher frequency, and buses which look as if they are cared for. And Stagecoach are shortly to begin commercial Sunday operation on another main corridor in Sheffield.The incumbent First vehicles, the fine Geminis, have been moved to Glasgow and replaced by tired-looking T-reg single-decks, with worn seats.The route branding has not been replaced. At the same time First have increased fares by 8-9%, a tad above inflation. Sragecoach have a student flat fare, but First don't- this on a route serving the University. First's philosophy appears to be that they would rather not carry passengers at all rather than carry them cheaply- and capturing the student market is an important issue whch has been discussed on this blog before.Indeed, the group's philosophy, both locally and nationally, appears to be one of managing decline rather than any serious attempt to market bus travel to a winable clientele.
This comment comes with a warning about generalisation, but if you want see the difference between First and Stagecoach, look at their drivers. Too many of Firsts's seem to be miserable and operationally slapdash, care little for timekeeping or passenger comfort and have no concept of customer service. Though there are exceptions, most Stagecoach drivers (in my area at least) are friendly, time their departures to the minute and clearly have pride in what they do.
This difference must come 'from the top'.
I'm not connected with either group.
Post a Comment