philthetube
Established Member
- Joined
- 5 Jan 2016
- Messages
- 4,195
Well, if an operator registers a service and, after starting, earns zero revenue then they can't have much business acumen and shouldn't be trading at all! I think that the point being made is that the operator must have sufficient financial reserves to operate the service with another operator competing against them for at least 56 days ( and probably a bit more as it will take a while to decide whether there is a chance of winning the competitive battle).
No doubt that the 56 day rule might discourage under capitalised companies from starting new services - but it also prevents all companies from withdrawing services with minimal notice. Can't have it both ways i'm afraid.
If I register a service using one bus and 2 drivers it will probably cost 30k plus if I get zero revenue. If another operator decides that they do not want me to run in that area they can ensure that I will never try again purely by running in front of me, this is not the intent of this legislation but it is the reality.
If the 56 day rule is to apply then their needs to be protection for the innovative company for at least the 56 days and ideally for longer.