(29 Oct 2023, 6:43 pm)mb134 wrote I struggle to see how they grow the business in it's current state, especially given the amount required to pay for these pay increases. There seems to be no investment currently from the new owners, just more second hand vehicles which themselves will need replacing sooner rather than later.
I think the expansion into North Tyneside was probably a decent attempt, but even if they were making a bit of money to start with I can't see those routes surviving this strike - passengers will have gone to Stagecoach, or will have arranged car shares as you've pointed out in another thread.
I'm not suggesting it's easy, but it's the only option that won't involve downsizing/consolidation.
Wages are going to go up every year, and say this increase isn't agreed this year, I think it's pretty much guaranteed that it'll be at that level in the next 2-3 years. It's not just wages, though, suppliers are doing the same, as they have their own cost demands.
So if they're not going to try and look for a positive solution to 2023's position, what are they going to do come year 3 or 4?
Regarding the £2 fare, I'm not sure how the reimbursement formula works, but I understand that operators can opt not to participate in it and retain control over their fares.
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