Future of the ‘Big Three’
Future of the ‘Big Three’
(06 Jan 2022, 2:07 pm)Adrian I'm interested to see how the ComfortDelGro deal works out. The press release was that CDG would be take over ownership, marketing, retail and customer service activities of Megabus (and Falcon), but we know that the vehicles themselves are owned and maintained by the various Stagecoach subsidiaries, operated for Megabus likely through some kind of transfer pricing arrangement. I can't see that changing in the first few years, as CDG still need those buses on the road and running to have a business, but it creates quite an odd situation.I must say, Arriva North East does seem a better proposition if either of GNE or Stagecoach/National Express could pull it off, then consolidate. With the devastating effect of covid and a bleak economic future for the region, is there really room for three main players? Is it time for a new round of carve up's and regulations?
You'd have the second largest coach operator outsourcing work to the largest coach operator, who then outsource their own coaching work to other operators. It also gives them a massive ability to influence the cost of coach travel.
In my opinion, there'll have to be changes somewhere down the line, likely with CDG moving to moving to a similar position as NX and using multiple contractors to deliver Megabus services, but it remains to be seen.
Couldn't agree more re: your Arriva comments. No one in their right mind would purchase the Arriva UK bus operation as a whole, unless the sole purpose was to asset strip it. The more likely result is individual depots or areas being sold, where it makes operational sense for another operator to purchase that work.
Go North West in Manchester is a good example and perhaps also good foresight, as it's given Go Ahead a base to operate out of and win work under the incoming regulated network there.
(06 Jan 2022, 2:07 pm)Adrian I'm interested to see how the ComfortDelGro deal works out. The press release was that CDG would be take over ownership, marketing, retail and customer service activities of Megabus (and Falcon), but we know that the vehicles themselves are owned and maintained by the various Stagecoach subsidiaries, operated for Megabus likely through some kind of transfer pricing arrangement. I can't see that changing in the first few years, as CDG still need those buses on the road and running to have a business, but it creates quite an odd situation.I must say, Arriva North East does seem a better proposition if either of GNE or Stagecoach/National Express could pull it off, then consolidate. With the devastating effect of covid and a bleak economic future for the region, is there really room for three main players? Is it time for a new round of carve up's and regulations?
You'd have the second largest coach operator outsourcing work to the largest coach operator, who then outsource their own coaching work to other operators. It also gives them a massive ability to influence the cost of coach travel.
In my opinion, there'll have to be changes somewhere down the line, likely with CDG moving to moving to a similar position as NX and using multiple contractors to deliver Megabus services, but it remains to be seen.
Couldn't agree more re: your Arriva comments. No one in their right mind would purchase the Arriva UK bus operation as a whole, unless the sole purpose was to asset strip it. The more likely result is individual depots or areas being sold, where it makes operational sense for another operator to purchase that work.
Go North West in Manchester is a good example and perhaps also good foresight, as it's given Go Ahead a base to operate out of and win work under the incoming regulated network there.
