Diamond Bus North West

[Winston]

RE: Diamond Bus North West

(09/07/2019 18:36)gilesbus1 Wrote:  That may be the case but a lot of contracts have been won because of low driver wages, and low operating costs, by moving stuff to Bolton it causes a problem in that they no longer have a competitive advantage and some of the work is now effectively uneconomical to now operate, take the route 575 when operated from Bolton depot by First Manchester it was uneconomical, effectively by moving it to Atherton it was able to be run cost effectively, now potentially back at Bolton is liable to withdrawal again as it becomes uneconomical. Then take the Leigh - Tyldesley services when operated by First Manchester from Bolton uneconomical again moved to Atherton, Profitable, so potentially about 10-20 routes now will have to be slashed or withdrawn. Hardly a good move is it?

No it doesn't. Bolton's overheads are covered by it's existing commercial routes, come August it will have spare capacity for approx. 60 buses, thus Atherton's fleet is now being absorbed in to Bolton with little increase to Bolton's overhead, whilst completely eliminating the overhead and running costs associated with Atherton.

What Rotala are doing with Atherton, is what they have done with a number of West Midlands independent operators they've acquired over recent years, i.e. absorbed those businesses in to existing depots. Thus keeping depots at/near full capacity.

You also need to consider that with the addition of First Bolton commercial routes, Diamond NW now has a much more comprehensive network of routes covering a larger area of Manchester, with day / week & month passes being far more attractive to passengers. Also, it will bring far more higher frequency / commercial routes to Diamond NW, which *should* be earning decent money & help subsidize the poorer performing routes indirectly, without the need to simply cut them.

The First withdrawal's were not only due to routes being marginal, but also due to driver shortages and cutting them was seen as an easy way to remedy those problems.