FirstGroup agrees three property disposals

[capitalomnibus]

FirstGroup agrees three property disposals from Greyhound division
T
ransport giant FirstGroup has agreed three property disposals in Los Angeles, Colarado and Ontario, it said on Thursday.

www.standard.co.uk/business/transport-logistics/firstgroup-greyhound-b589115.html

[lonmark]

well, If First Group wants to come back to TfL area again, then First Group needs to find buy bus operator like Tower Transit? To get more money rolls in!

[Eastlondoner62]

Dec 31, 2020 19:43:15 GMT lonmark said:

well, If First Group wants to come back to TfL area again, then First Group needs to find buy bus operator like Tower Transit? To get more money rolls in!

I don't think First would touch London even with a stick if the aim is to return to profitability, the market here is just becoming more and more competitive.

[thekbq14]

Dec 31, 2020 20:25:13 GMT Eastlondoner62 said:

Dec 31, 2020 19:43:15 GMT lonmark said:

well, If First Group wants to come back to TfL area again, then First Group needs to find buy bus operator like Tower Transit? To get more money rolls in!

I don't think First would touch London even with a stick if the aim is to return to profitability, the market here is just becoming more and more competitive.

This is definitely sadly the case with London, but if this is the case of London's bus market being unprofitable how comes bus companies are still here, what do they gain from London?

[TB123]

Jan 1, 2021 21:36:39 GMT thekbq14 said:

Dec 31, 2020 20:25:13 GMT Eastlondoner62 said:

I don't think First would touch London even with a stick if the aim is to return to profitability, the market here is just becoming more and more competitive.

This is definitely sadly the case with London, but if this is the case of London's bus market being unprofitable how comes bus companies are still here, what do they gain from London?

It's not unprofitable, but the more competitive nature of the market makes it harder and harder to generate a profit and requires even more efficiencies to be made to hammer down operating costs on tender as well maximise the all-important QIC bonus payments. 

[Gellico]

Jan 1, 2021 21:57:01 GMT TB123 said:

Jan 1, 2021 21:36:39 GMT thekbq14 said:

This is definitely sadly the case with London, but if this is the case of London's bus market being unprofitable how comes bus companies are still here, what do they gain from London?

It's not unprofitable, but the more competitive nature of the market makes it harder and harder to generate a profit and requires even more efficiencies to be made to hammer down operating costs on tender as well maximise the all-important QIC bonus payments. 

I am pretty sure that London is Stagecoach's most profitable region, likely GAL's as well. 
If you are a large operator with a constant stable workload the profits from London are quite big and given operators need not invest but just maintain a standard that they're paid for the model to gain profit works wonders.
For small operators the TFL market is essentially impossible to break into as the monopolies that operators have over certain areas means scaling of economy becomes easy. 
Look at what AF quote £/mile on tender specs. They are the only bidders for the 14 & 74 and they do get monies worth from it.