(10 Aug 2014, 8:48 am)VolvoMarkII wrote That's where local authority support usually steps in.
Unfortunately, with the cuts the government has placed on all of our local authorities, subsidising bus services has fallen way down the list of priorities.
I think we can all see your point and don't disagree, however as pointed out already, bus companies these days need to make money to pay for their outlay (Drivers, fuel, insurance, maintenance, overheads etc). Local authorities simply don't have the funds (or don't want to allocate the funds) to provide support for services that do not quite meet operational costs.
The bus company then has the decision to make. Withdraw the loss making route or retain it, if it has benefits elsewhere (such as a feeder into a much more profitable route). Most of the time, loss making services are either significantly reduced to suit demand, or withdrawn in full.
A tongue in cheek example would be that you wouldn't see ASDA buying bread for 50p a loaf and selling it for 30p, would you? The exact same principle applies in business, irrespective of the product you are supplying.
Social responsibility is irrelevant now. Only a QCS would make sure the poorer services were catered for, by wrapping them up into tenders with the most profitable.
I think the problem lies somewhat in the genera public assumption that a public service should provide everything that may be wanted. Infact, most people still seem to think that their council tax entitles them to a service. That was dissolved a long time ago. Bus operators are businesses, that happen to make money by driving vehicles around and letting people get on for a fare. No social obligations whatsoever and that will not change, no matter how many people get upset by it.
You often get businesses doing just that and label the practice as a loss leader.
In areas of competition, operators often run at a loss - just to get rid of the competition or claim a patch as their own.
I can't imagine the tickets on GNE's weekly ticket between Silksworth and Sunderland makes much money - just as they lost out financially on the Durham Road war with Classic.
Ditto Magic Buses up and down the country.
We all know about the bus war in Darlington too.
But as others point out - the current system in place for almost 30years, is working!
