northwichcat
Veteran Member
Interesting they are pointing the finger of blame at Metro Mayor and Merseytravel for forcing them out-of-business by offering discounted travel without properly consulting operators. If that is the real problem could we about to see operators pack up in Greater Manchester as well?
https://www.wirralglobe.co.uk/news/16963053.wirrals-avon-buses-cease-trading/
Company directors revealed the decision on Friday, October 5 after 35 years of serving the community.
Avon was in charge of running key services across the borough including the 88, 10A, 17A, 22 and 145.
Directors have cited the cost in running bus services in Merseyside and Merseytravel's introduction of the MyTicket as the reason for the closure.
In a statement, Avon said: "It is with great regret that we have to inform you that after 35 years serving the local community, Avon Buses will cease operations on Friday, October 5, 2018.
"It has been the case for some time, that the cost of running services has been far in excess of the revenues that we receive and while ever effort has been made to cut costs and improve ticket sales it has become obvious tat the situation is unsustainable.
"We have been subject to significant increase in fuel costs that show no prospect of reducing and a very large increase in insurance premiums caused by the 'claims culture' that currently exists nationally.
"On their own these factors would be difficult to manage but the main problem with revenue has been the introduction by Merseytravel of a product called MyTicket.
"This was introduced in September 2014 as an affordable day ticket for young people up to the age of 16 years.
"Again, this was done without any consultation with this company. There is still no need to show proof of age, and we continue to believe that this ticket is open to serious abuse.
"Prior to the introduction of MyTicket, 80% of all cash ticket sales were to adults. The remaining 20% were to young people.
"In the year 2017 to 2018 adult ticket sales had reduced to 37% with young people's tickets at 9%. The remaining 54% of tickets were MyTickets.
"As MyTicket is essentially a discounted half fare, a substantial part of our revenue from adult tickets has been halved and this has had a massive negative effect on our revenues. As our passenger numbers fall well short of those experience by the larger bus companies we have been unable to absorb these losses.
"It is disappointing to note that the Metro Mayor has announced his intention to introduce discounted 'Apprentice Tickets' up to the age of 24 years without first consulting independent bus companies.
"As we understand it, there is an expectation that the bus operator will pick up the cost of subsiding this ticket.
"We have advised Merseytravel on numerous occasions that this is not a sustainable situation and their response has been unsympathetic.
"They suggest that the increase in MyTicket sales shows a growth in young people travelling by bus.
"The reality is that the increase is merely abstracting from the number of adult passengers using the bus.
"To ensure that we continue to accept this ticket Merseytravel have included MyTicket into the pre-paid ticket scheme. This means that to refuse to accept MyTicket would mean that we would have to withdraw from the scheme entirely. We could not accept Solo, Trio or Saveaway products.
"It would be impossible to operate in these circumstances.
"We would also like to apologise to our loyal passengers, many of whom will be adversely affected by this closure."
Stagecoach bus company revealed that it would be taking over the number 22 Avon service which serves Chester, Neston, Heswall, West Kirby and Arrowe Park.
https://www.wirralglobe.co.uk/news/16963053.wirrals-avon-buses-cease-trading/
