Wednesday, 28 March 2012

Edinburgh Next?

With sales agreed in North Devon and now London Northumberland Park, First has begun its restructure. There are reports that next up will be Edinburgh, Scotland, in a possible sale to Lothian Buses, subject to the competition authorities’ approvals. Here, our new Edinburgh Correspondent considers why First has lost ground to Lothian. Omnibuses welcomes contributions

There were many comments in this blog on the announcement of the new livery for First—the scheme forming part of the “fight back” that Giles Fearnly (the newish Bus MD) is spearheading.

Here in Edinburgh, First has garages to the east, south and west of the city (it sold its historical base in the centre some years ago). Over the years, Lothian and First have locked horns in competition both inside and outside the city boundary. On the whole, Lothian wins most battles: indeed erratic and confusing routes to Penicuik to the south of the city provided by First (and Eastern Scottish, its predecessor) have been replaced by regular and simple Lothian routes. It’s easy to think that the present day frequencies (six buses an hour off peak) on one of three route combinations are better than that which existed back in the sixties. First gave up the routes, so what did Lothian do? It did not configure the cheapest option; fares did not rocket compared to the rest of the network; the vehicles are regularly updated; and frequencies were improved.

Embarrassingly for First, Penicuick is closer to its Dalkeith base than to one of Lothian’s. And now First has halved its key route 86 from Dalkeith to Central Edinburgh in the face of more competition from Lothian. Bit by bit, First is being challenged and giving ground to the local operation.

But why are passengers voting with their feet? Simple. The presentation at First is poor and sub-standard, especially when compared to Lothian. One picture posted in a forum was a 55-plated Gemini next to a brand new 11-reg example. Apart from some detail differences and the number plates, the presentation standard is so high that it is impossible to tell which is the newer. The service ethos seems chalk & cheese as well. During the recent high winds, it was not safe to send double deck outside the city bypass. Lothian, quickly and without fuss, swapped double for single decks, and vice versa. Sure, there was probably some “standing room only” type journeys, but journeys there were. And First? It sent its buses back to the depot.

Let’s look at a competitive battleground which, until the last few weeks, was stalemate: the cross-city route 44 (passing close to this correspondent’s home). The fares are identical and both Lothian and First each run every 10 minutes between Balerno in the West and Wallyford in the East. Then all sorts of eastwards bifurcations happen, with Lothian going no further than Tranent. And, more embarrassment for First, both its and Lothian’s 44 pass by the First depot in Mussleburgh. Here we can see how different operators compete, using different standards. Competition has been fairly similar for many years now on this key route.

As an unscientific sample, I spent some time wandering around the key eastern artery of London Road today, along which the 44 heads east out of the city centre, comparing the First and Lothian presentation. Every single Lothian vehicle seen on the 44 was a branded Gemini, with paintwork gleaming and looking smart despite the 55 plates they bare. If you were looking for a Lothian 44, visually it would be easy to spot.


But then First. To be fair, most of the vehicles today were (on average) better presented then the last time I looked. But most were grubby, the off-white base being a kind of off-sludge colour. Some panels I saw were patched up without much care: the worst example was to the near side rear on an Olympian where the previous dark blue and pink vinyl stripe had been crudely painted back on. The painting was not straight and had varying degrees of transparency.

The vehicles seen today were mostly R-reg Olympians, looking as if they are marking time before they collapse in a heap. I also saw an even older ex-Glasgow P-reg example. And then one of the elderly looking P-reg Darts put in an appearance. Not seen today, but Plaxton coaches also sometimes come out: one still with First Cymru plastered on the sides, another in dealer white. And as a special treat, a Mercedes Vario minibus is also sent out sometimes on this key, cross-city, competitive route.

Hardly a consistent or, indeed, an appealing standard of presentation for intending passengers, I would suggest. Further, when you consider that this hotchpotch of vehicles is turned out every day on such a route, against a competitor with a deservedly good reputation that wins awards, that has won ( or is winning) on other key battlegrounds on its patch then that shows the potential low point at First in Scotland East.

In the last few weeks First has just announced it is halving the frequency of the western section from the City Centre. It looks like the retrenchment has begun.

Now it is interesting that Omnibuses’ Northern correspondent remarked recently that the “Barbie 80’s” livery looks better in reality to the pictures and that there are many examples on Manchester’s streets. But as yet, I have not seen or heard any of First’s fleet in South East Scotland in the new livery. As far as I am aware, no new vehicles are due either.

So, is the non-appearance of Barbie 80 up here because the operation is over in First’s eyes? Or because Mr Fearnly has yet to give the Scotland MD a ring yet? One could be forgiven for thinking that actually, the problem is so deep up here that “special measures” are called for, with lots of “executive help”.

Now the situation for First may not be as bad in other areas it operates in. Comments I consistently see suggest that it has problems in most places. There are rumours circulating that the Dalkeith and North Berwick depots are about to be sold to Lothian: to be frank, those rumours circulate with a reassuring regularity. But whichever way the dice will roll in “Scotland East”, Lothian will continue to make in-roads into First, all because of its superb presentation and attention to detail. Up here it looks like First has a *long* way to go before it can even think of challenging Lothian from its pedestal.

From the pavement of London Road today, it looks like Mr Fearnly has a long, hard road ahead of him.

20 comments:

Pete said...

First are in a vicious circle - they don't make money on routes like the 44, so they can't justify investment, so presentation suffers, so ...

Lothian have another competitive advantage - only they can offer comprehensive network tickets for the whole city. And by operating a single fare zone - 1.40 for up to 15 km from the city centre - they force First to charge far less than they would choose to do.

Of course, their shareholders (the councils) are interested in having good quality local bus services, not just dividends. If only other councils had not sold the family silver years ago.

The recent cuts to Balerno are typical of what First have done elsewhere in the city - piecemeal reductions (reduced frequency, no weekday early morning or Sunday service) rather than biting the bullet and ditching the route.

Having said all that, what is left of the Edinburgh area is a small part of FSE, and I don't see why the rest should not be reasonably healthy financially.

Anonymous said...

"Of course, their shareholders (the councils) are interested in having good quality local bus services, not just dividends. If only other councils had not sold the family silver years ago."

Whilst I agree this is probably the case in lots of places, down at the other end of the country here in Bournemouth (yes sorry back to Dorset) the total opposite is true. The council had failed to invest (much) in Yellow Buses in recent years, but then Transdev came along to buy the company, and whilst perhaps not initiating a radical investment in brand new vehicles, carefully selected second hand low floor Darts improved both the age profile, the image and most importantly the passenger experience all improved - net result a reasonably huge jump in patronage and thus further investment in the fleet is justified(indeed those purchases are now in the process of being replaced themselves). YB had a 100% low floor service fleet many years ago - the only time a step vehicle appears on stage carriage work is at the air show weekend!! Would have been unthinkable in council owned days . . . I for one am very glad the council sold its silver as its improved the local public transport no end down here.

Anonymous said...

It does seem to make more since of First does sell off Dalkeith, Musselburgh and N Berwick.

The some one has mist out some Important points:

* FSE are DUE new buses but for the Scottish borders areas:

* FSE has still not made a profit, Can you guees which depots are not bring in the cash?

* Bus war in 2000/2001 did not help on bit and First give up on a number of city routes.

First would be better off spending the money on getting its core central belt depots, instead of this so call mini war

Anonymous said...

Over the years the CC (the MMC before it) have made what appear to be very inconsistent rulings with regard to one company taking over its competitor (Preston, Eastbourne, Portsmouth, Brighton etc) but surely to allow Lothian to buy some First operations and remove on-street competition would directly fly in the face of the recent industry inquiry results? So should North Devon really....

Pete said...

re anon 0947

LB funds its investment internally (as far as I know), so does not need new capital from the local authority shareholders. I guess Yellow Buses was not generating sufficient surpluses to renew their fleet, perhaps because of the competition from Go.

There is a lot to be said for social ownership, be it John Lewis, Nationwide or LB.

Neil said...

True, though MTL (an employee owned company) was hardly the pinnacle of good service.

fatbusbloke said...

It's FearnlEy
NOT
Fearnly.

Anonymous said...

Or indeed CT Plus......

SEV 777 said...

I have little knowledge of operations in the Edinburgh area but parts of the blog sound depressingly familiar. I wandered around Colchester Bus Station last Sunday where about twenty buses of First Essex were parked up, all of them looking slightly unkempt. One of the buses summed up the problem for me. For some reason the bus station has very high kerbs which means that if a bus overhangs the pavement and loses its air pressure then the weight of the bus rests on the lower panels as they contact the ground. It was clear that this particular doubledecker was spending its day off like this and by the look of the panel had done so several times. Until First can send the clear message from the top that things really have changed then I'm afraid that drivers won't be encouraged to take better care and fitters won't have the incentive to repair damage properly and promptly.

Stevie D said...

@Pete:
“First are in a vicious circle - they don't make money on routes like the 44, so they can't justify investment, so presentation suffers, so ...”

I don't buy that. We're talking about First Group here, not some tinpot local operator with a fleet of half a dozen vehicles and a cash-flow problem. First Group, who boast on their website about “having revenues of over £6bn”. If they want to invest, they can invest. They might not be making much money at the moment, they might be losing passengers to Lothian at the moment, but when you look at the picture on the street, it isn't hard to see why.

First need to come up with a better strategy here. Or rather, a strategy, because they don't seem to have one. It comes across as a case of barely managed decline. Either (i) they pour some money in to bring the service up to standard – new buses, better maintenance, loss leader fares, the lot – so that they can compete with Lothian and improve the passenger numbers and profitability of the route and the wider network, or (ii) they accept that they can't compete and make a strategic withdrawal – that may be partial or total, depending on whether they feel they have some strongholds that are viable, but it needs to be decisive action that shows they are in charge of their own destiny and not just floating along behind Lothian picking up whatever crumbs it misses.

Steven said...

It's worth noting that two services from First's Galashiels depot run into Edinburgh; the 62 which runs through Penicuik, and the X95 which passes through Eskbank, half-a-mile from Dalkeith depot, on its way to and from Galashiels, Hawick and Carlisle. Both these services are run by vehicles turned out to a high standard, and even the oldest buses at Galashiels depot (Olympians with M, N, P and S registrations) are well turned-out. The problem as I see it is that Dalkeith depot (and to a smaller degree, Musselburgh) has an attitude of "couldn't care less, as long as it runs". As long as this continues then so too will the First decline in the Edinburgh area.

Anonymous said...

It's not just Edinburgh in particular that suffers from FSE's fleet issues, it applies to other depots too. If it's not bus shortages, it's the fact that nothing new has been bought unless it was government funded.

Not just Edinburgh can be sold, First can get rid of a lot more of their FSE depots which feature sky-high fares and buses fit for coke cans.

plcd1 said...

@ Stevie D - surely there is another option for First? They could decide to go for a niche service which would serve a different part of the market to Lothian Buses. They could then invest in those services and make them attractive to passengers.

I'm not terribly familiar with buses in the Edinburgh area but Stagecoach seem to have found a decent niche of interurban routes with good vehicles and good service levels to the west of Edinburgh. Now that may be a traditionally stronger corridor than to the east of Edinburgh but other groups have managed to pull the trick elsewhere in the UK. Why not First?

Pete said...

A couple of examples of attention to detail from the FSE web pages:

1 A prominent announcement on the home pageof delays in George St from 21 January (sic) for 5 days.

2 A news and initiatives item - the first for a year - that 'Passengers are advised that there will be a fares revision from Sunday 1 April 2012.' Details - none whatsoever.

Where I work (not in buses), the boss would see it, have a word, and it would get fixed pronto. They really do need 'executive help'.

Dennis Drat said...

The problem of an aging, tatty First fleet is now so widespread as a result of under-invetstment in the Lochhead era that Giles has a mountain to climb to improve things.
The Potteries fleet, in what should be good bus territory, is a sad sight to behold. Or look at Sheffield - 287 buses allocated to the City, only 48 of which are less than 9 years old. (some more are run fron Rotherham, but are often even older!)Stagecoach have 121 buses of which 88 are less than 9 years old (Source- SY transport Forum website). The latter are better cared for and offer, in the main, cheaper fares.Short-trem dividends seem to have been the only preoccupation for too long.

Stevie D said...

@plcd1 - That's pretty much what I had in mind by a "partial (strategic) withdrawal" ... stop trying/pretending to provide a comprehensive service across the city, and instead concentrate on a small core of routes where they can win.

@Dennis Drat - The thing is, where First put the effort in, they can do things fairly well. In York, 11 years ago they underwent total fleet replacement – every bus they had was scrapped or moved and they bought brand new Volvos - B6BLEs, B7Ls and B7TLs (plus 3 Solos for one particular route). They've continued to buy new vehicles, and excluding the P&R buses, which they run under contract, the average age is 8 (including the P&R brings it down to 6½), with the oldest buses being 11. That compares favourably with all the northern Transdev divisions except York/Coastliner, even if you exclude the vehicles dedicated to school services that pump their average ages up. But even then, they've lost out on a lot of the marginal routes – the minor routes, subsidised routes, evening and Sunday services on less popular routes. There core is strong, but they haven't got much resilience around the edges, which makes them prey to smaller local operators.

Anonymous said...

Nobody has picked up on the main problem with this slow, piecemeal retrenchment by First and that is the gradually increasing overhead cost per bus as the fleet is downsized. The Edinburgh operation probably dropped below an optimum level years ago!

Pete said...

After reading Tim O'Toole's remarks on Thursday (on their corporate website), I think First Scotland East are definitely doomed.

Tim Burns said...

Doomed? Oh yes. First announced today wholesale retrenchment in East scotland (see http://www.firstgroup.com/ukbus/scotland_east/travel_news/news_initiatives/?item=5451&conf=0). Dalkeith depot will close and Mussleburgh reduced in size. apparently they have given notice to cease various routes to the traffic commissioners already. In the press release are a number of given reasons, many of them related in this article and the comments. 200 redundancies are expected: a sad day for the staff.

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