Will NatEx-Stagecoach merger change attitudes towards franchising?

[Bletchleyite]

It is well known that Stagecoach don't like franchising, which could be a barrier to this being expanded in other cities if they won't play along.

However, do NatEx think similarly? Or could the takeover (which admittedly involves Stagecoach's CEO at the top) mean a change in that attitude and thus a barrier to franchising removed?

 

[RT4038]

It is well known that Stagecoach don't like franchising, which could be a barrier to this being expanded in other cities if they won't play along.

However, do NatEx think similarly? Or could the takeover (which admittedly involves Stagecoach's CEO at the top) mean a change in that attitude and thus a barrier to franchising removed?

National Express have gone to great lengths to lobby against franchising in the West Midlands.....

 

[carlberry]

It is well known that Stagecoach don't like franchising, which could be a barrier to this being expanded in other cities if they won't play along.

However, do NatEx think similarly? Or could the takeover (which admittedly involves Stagecoach's CEO at the top) mean a change in that attitude and thus a barrier to franchising removed?

No. Franchising is an option that is available to English local authorities which are free to do it if they're want to. Stagecoach hasnt stopped Manchester's plan to dispose of £140 million pounds by doing it.

 

[Simon75]

But Stagecoach have London operations, which are franchised (and which they bought back after selling).
National Express used to, but sold off to Abellio.

 

[johncrossley]

National Express have gone to great lengths to lobby against franchising in the West Midlands.....

Why would any incumbent be in favour of franchising? Especially now when the alternative is being handed free BSIP money without fear of competition.

 

[Man of Kent]

Why would any incumbent be in favour of franchising? Especially now when the alternative is being handed free BSIP money without fear of competition.

No-one is getting any free money. It is far from clear what the Treasury will make available, and rumblings in the industry suggest that the heavy emphasis on subsidy for lower fares and longer operating days will be pushed down the agenda, with an expectation that the largest proportion will be for capital spending.

Add to that the continuing lack of 20% of passengers in most parts of the country, and the bus industry is looking pretty sick, irrespective of ownership or operating regime. Local authorities will by default become the arbiter of what does or doesn't run in future.

 

[johncrossley]

No-one is getting any free money. It is far from clear what the Treasury will make available, and rumblings in the industry suggest that the heavy emphasis on subsidy for lower fares and longer operating days will be pushed down the agenda, with an expectation that the largest proportion will be for capital spending.

Add to that the continuing lack of 20% of passengers in most parts of the country, and the bus industry is looking pretty sick, irrespective of ownership or operating regime. Local authorities will by default become the arbiter of what does or doesn't run in future.

Buses will no longer need to be profitable for bus companies to make money. Since 1986 that's been the case for routes won by competitive tender, but companies running those services are at risk of losing the work at the next tender. Under Partnerships, the incumbent operators will be given money to keep buses going with no compulsory tendering.

 

[GusB]

Please bear in mind that this thread is specifically concerned with franchising in relation to the forthcoming merger between National Express and Stagecoach. Anything else is off-topic.

 

[javelin]

No. Franchising is an option that is available to English local authorities which are free to do it if they're want to. Stagecoach hasnt stopped Manchester's plan to dispose of £140 million pounds by doing it.

...Except the small matter of Stagecoach taking the franchising decision in GM to judicial review, which still hasn't been ruled on.