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Post by MoEnviro on Nov 14, 2018 16:42:15 GMT
Maybe some will come from extra fares revenue (no sign of that going up currently), so doesn’t make sense to me as Bus companies aren’t going to offer tender bids at big losses There not going to voluntarily slash there profit margins either
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Post by snoggle on Nov 14, 2018 17:04:41 GMT
Assembly : TfL finances, the end of the line report Section 6.1 says plan is to save £ 375m on cost of bus services, which is about double the 9% proposed cut to bus services. Looks like the Operators are going to be squeezed for tens of millions each year (about £180m if no efficiency changes) The Board papers show Q2 year to date bus cost as £968m (and income of £670m) so I am calculating £375m as about 18% off bus costs. Maybe some will come from extra fares revenue (no sign of that going up currently), so doesn’t make sense to me as Bus companies aren’t going to offer tender bids at big losses The £375m is nothing new. It was quoted at the Assembly nearly a year ago. I said here at the time that it didn't look to be a plausible number without significant cuts to service levels, PVRs and operator margins. It is noteworthy that those latest reports from TfL show that, as you say, costs this year are the same as last year. TfL's current objective seems to be to absorb the inflation uplift built into the contracts. Given that we have been having cuts to services over the last year and cuts to PVRs they haven't actually achieved a monetary saving but obviously there is a saving of 2.4%. I think we can see that the Central London changes are designed to start moving the cost numbers downwards from this year's level *and* to continue counteracting any inflation in the contracts.
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Post by redbus on Nov 14, 2018 22:53:51 GMT
Maybe some will come from extra fares revenue (no sign of that going up currently), so doesn’t make sense to me as Bus companies aren’t going to offer tender bids at big losses There not going to voluntarily slash there profit margins either The bus companies are in a difficult place. I suspect they have little option over service reductions and frequency cuts but to do what TfL asks. TfL as the customer will have most of the aces, and no bus company will want to go out and 'upset' them.
Have said that bus companies are not charities, and will want to make money. This will be reflected in tender prices and I suspect TfL will need to be very careful how much they push the bus companies. Push too hard and the bus company may well pack up and think there are easier ways to make money!
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Post by sid on Nov 15, 2018 11:36:42 GMT
There not going to voluntarily slash there profit margins either The bus companies are in a difficult place. I suspect they have little option over service reductions and frequency cuts but to do what TfL asks. TfL as the customer will have most of the aces, and no bus company will want to go out and 'upset' them.
Have said that bus companies are not charities, and will want to make money. This will be reflected in tender prices and I suspect TfL will need to be very careful how much they push the bus companies. Push too hard and the bus company may well pack up and think there are easier ways to make money!
Much the same as any other organization that sub contracts work out, the NHS for instance.
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