Monday, 1 February 2010

Overlaps—Pt 1

When it concludes some time in 2011, will the Competition Commission attempt to stimulate more on-street competition?

Or does the Transport Act 2008 offer some alternatives? Here, first off the blocks is what we’ve dubbed the Oxford Solution”. The Oxford Bus Company & Stagecoach will this autumn co-ordinate. Where the large groups overlap, will we see other transport authority-promoted statutory quality bus partnerships or other agreements emerging?

There are potential win-wins for operators (resource savings in the aftermath of a recession), passengers (network benefits) and public authorities (contribution to inclusion, congestion & environmental targets). While we all tend to concentrate on daytime frequencies, remember that co-ordination is just as valid when competitive frequencies thin during the evening and on Sundays.

Here’s part 1 of Omnibuses’ guide to some possible future co-ordination. More will follow later in the week, in part 2. The more stars out of four, the higher the likelihood of introduction, in our estimation. The big question surrounding partnerships still remains: will local transport authority partners have the funding to deliver?

Merseyside

The ingredients are in place. Long-needed investment between Liverpool-St Helen’s 10A by both Arriva (6/hr) & Stagecoach (4/hr) replaces a rag-bag of stock. Likewise, on the 14/14As from Liverpool-Croxteths. Till 2005 on the 14s, there was a block on Arriva competing with GTL. Upon Stagecoach’s takeover of GTL, what appeared to outsiders as a deal saw some Arriva retrenchment on the 14, in exchange for Stagecoach not competing against Arriva elsewhere. The 14s still see Stagecoach’s 8/hr and Arriva’s 12/hr, totalling 20/hr. Will the public sector investment match operators’ expectations?

Leicester

“Country” operator Arriva Midlands (Fox County) went head-to-head with incumbent First (predecessor, Leicester City Transport) in 2007. Part of the so-called Operation Overdrive, Arriva’s branded Local Linx fleet was modern and included refurbished vehicles. First strengthened its frequencies and its Sunday service, as a response. Last year saw some retrenchment at First, as part of its national cost cutting. Yet, maintaining market share meas higher frequencies at First than Arriva. First in particular may wish to see some sort of co-operative peaceful co-existence.

Sheffield

When Stagecoach bought the Traction Group, the scene was set for rejuvenated competition in Sheffield against First, in 2006 and 2007, via Traction’s Yorkshire operation. Stagecoach was able to trump First with a Stagecoach-operated tram tie-in. Meanwhile, as the supposedly ground-breaking Sheffield Bus Agreement shortly crumbled, First was accused by South Yorkshire PTE of high fares and poor service. Still there remains potential.

Plymouth

First’s reaction to the Plymouth Citybus sale was to unleash Ugobus phase 3. This ramped up the competition between parties but, this month, expect First cutbacks, while Citybus new owner Go Ahead is expected to develop. Meanwhile, there seems no such retrenchment of the Citybus counter-measures, including a new route out east. Is there room for two profitable operations covering the same ground or could we see something approaching a new Joint Services?

Chester

During the Chesterbus sale, Arriva offered the hand of friendship and, when rebuffed, it struck. The courts were powerless to stop Arriva launching a full scale combative attack, with new vehicles against Chesterbus’ old wrecks. First bought Chesterbus, began using SLFs, ratcheting things up in Blacon to the extent, between them, that you can’t help but fall over buses. Arriva soon withdrew from other city services but continued in Blacon. Neither party seems able to back down… without some sort of agreement saving faces.

Liverpool image: Omnibuses Northern Corespondent

1 comments:

Anonymous said...

Re Leicester, the wording 'First, in particular, may wish to see some sort of co-operative peaceful co-existence' is very true. It has gradually changed from being the dominant operator to the underdog, partly thanks to all significant changes having to be authorised by First HQ in Aberdeen.

Arriva and Centrebus must be having a good laugh.