(14 May 2014, 6:06 am)Dan wrote I'll go back to some of the points I raised in my post in an edit before you saw it...

Nexus creates a contract with requirements that one could argue are completely unnecessary, and an operator agrees to those terms for the simple fact that they probably need the work. For smaller operators such as Compass Community Transport (did we discuss that CCT is a charity or have I just made that up?), this is likely to be quite a big chunk of work but they still want to make a bit of profit as any business would, so they go for it.

The contract they've won for a service has timings which are difficult to stick to - this leads to delays almost every day - but this smaller operator realises that, if they incur lost mileage to make up time, they will receive a penalty. As such, their hands are tied, and customers are inconvenienced by the delay which grows increasingly throughout the day.

The operator realises one morning that the vehicle that they usually allocate is unable to go out on the road that day, and their backup vehicle is also VOR. The operator is forced to either send out a vehicle which does not comply with the contract which they signed OR they can loan a vehicle from another operator (Kinglsey's did this with an E200 of A-Line's just a few days ago for service 33). Either way, they're out of pocket. Less profit is made.

Less profit is made - this happens regularly and amounts to over £1000 each month. This smaller operator sees a new contract coming up and it's a good opportunity for their company to grow and expand, as well as the company seeing opportunities for increased profit levels. However, because they've incurred £1000 penalties each month, they can't afford a new bus for the contract.

They can't afford a new bus for the contract, and the bigger operator gets the contract. It's a dog eat dog world...

Kingsleys also had an A-line Dart out on scholars work the other day.
The contract is usually operated by a decker.

There may have been fines, but the kids got to school - just as the oap's were able to get their pension after Compass stuck an alternative on or commuters/people going on a break managed to travel on East Coast with the borrowed East Midlands HST set.
Fines, rental costs or whatever else incurred may make a dent in profits, but good will and customer satisfaction is maintained.

Aye, Compass is a charity.