29 Dec 2016, 12:49 am
#526
(28 Dec 2016, 7:32 pm)JP6004 Well you don't run a business to make a loss.
If you spend more on fuel tax wages maintenance than the service generates, you cannot sustain the service. If GNE continued to operate non profitable services, then they would no longer be in business.
So when manufacturers and supermarkets run loss-leaders that's for what reasons?
When a model is built around the hub and spoke, there will be elements of the model stronger than others. The way the land lies, housing and employment mean that is a guaranteed certainty.
What you can't do is remove the spokes or reduce when the spokes are in place, cos ultimately it's gonna impact on the stronger spokes and their profits.
The 21 can only work to its potential when you have the likes of the 13, 14, 15, 28, 34 and 36 (all serving places that had regular services to Newcastle) working to their potential too. Without them (even if they don't make a profit), the 21 doesn't achieve anything like it does.
'Illegitimis non carborundum'
