(23 Jan 2014, 9:32 pm)Kuyoyo wrote The stop listed on the timetable is after Tesco.

(23 Jan 2014, 9:35 pm)speedwheels22 wrote Wht they still running the X3 all I ever see on that service is oap should be name the oap express when the chages will come I will dowt the bus will be the same full of oaps

(23 Jan 2014, 9:29 pm)Tom wrote Thanks Micheal! I don't know the Sunderland area very well, so would have no idea. I'd imagine the X3 will just use a Yellow MPD on Saturdays, with a Solar through the week due to the X3 interworking with scholars.

(23 Jan 2014, 9:49 pm)Dan wrote The weekday allocation is more likely to be a B7TL if interworking with scholars.

(23 Jan 2014, 9:51 pm)Tom wrote Ah, just thought it was replacing the scholars runs from the 26 (which was previously a SPD, terminates at Boldon Asda I believe).

(23 Jan 2014, 8:04 pm)Davey Bowyer wrote It's amazing to think that 7 years ago, the 309 was just a poxy little half hourly single decker route that required heavy subsidy of the Cobalt to keep operating. People didn't use it because "it went around the world". But despite the fact that Cobalt Business Park made funding cuts and the 19 fell foul of them, GNE have grown the 309 to become stronger and stronger over the years without over depending upon CBP. The changes they made back in November 2010 have certainly made a difference with a unified and strong corridor through Battle Hill supporting both services 309 and 310. GNE have grown the customer base in Cobalt and you even have people getting on in Newcastle stating destinations such as Foxhunters and Seaton Sluice. With the way Arriva's 308 is heading with it's poor timekeeping and reliability, the 309 is going to continue and grow in the long term. Arriva will have to explain to the Commissioner why the 308 can't keep to time and they will eventually have to increase the timetable by a couple of minutes therefore giving GNE the upper hand.. If GNE up the marketing on the 309 and with the new Volvo's, the 309 will grow to become one of GNE's major routes.

(23 Jan 2014, 10:18 pm)Adam wrote Last week in my Business class, we came across an idea that may explain why GNE keep some of their not-so-well-used services. (I know this may get quite dreary and quite confusing but please bear with me. It's also a good excuse for some revision).

Anyway, the idea is based on a thing called Contribution, (calculated by taking the Selling Price away from the Variable Costs), which helps a business to see how well a product (or service in this case) contributes to the overall Fixed Costs of the company.

Even if a product or service is making a loss, that can be a good thing (but only in the short-term. If in the long-term, then the company will seek to change its strategy to increase the profitability of that product/service that is making a loss, hence many changes to some bus services, such as the X3) as it can help to maximise the profitability of other bus routes as the total Fixed Costs will be "shared out" equally between more bus routes. If the product/service was to be withdrawn, then the equivalent amount of Fixed Costs would need to be "shared out" amongst the rest of the routes, increasing that figure for each service.

As an example, if a business has 3 products/services (for argument's sake) and has Fixed Costs of £30,000 evenly spread out (i.e. £10,000 each). Product A makes a profit of £12,000 and Product B make a profit of £3,000, but Product C makes a loss of £5,000. I know it sounds as if Product C should be withdrawn, but let's see what happens.

Product C is then withdrawn, so the Fixed Costs that Product C contributed now have to be spread equally into the remaining Products, A & B.

Now, the £30,000 of Fixed Costs has to be equally distributed between Products A & B, so their Fixed Costs are now raised to £15,000 each. That means that the profit of Product A has reduced to £7,000 (original profit (£12,000) - £5,000 (share of increased Fixed Costs), whilst Product B now makes a loss of £2,000 (same calculation).

So then, it is better to continue producing Product C as it helps to increase the profitability of the other products/services :)

Sorry......

(23 Jan 2014, 10:39 pm)andreos1 wrote I get what you are saying, but if those fixed costs were reduced by natural savings or other means such as streamlining, then it is possible to maintain or increase profits with the two remaining products.

So if product c (x3) is cancelled, costs can be reduced for waged staff, fuel costs are also reduced and if justified, vehicles sold.
If that was the case, then the initial 30k costs can now be 20k and the profits for products a and b maintained.

(23 Jan 2014, 10:50 pm)Adam wrote That is the exact flip side of the argument that cropped up in the lesson

(23 Jan 2014, 11:02 pm)andreos1 wrote Haha, was it?

l suppose it depends what the fixed costs are and what the scenario or situation is.

In this example, you could increase the costs of product a and b, by increasing frequency, utilising the resources from product c - in the hope of making greater profits on the first two.

So product a has costs of 15k, product b has costs of 12k and product c has costs reduced to 3k.
The gamble then, is that a and b increase their profit, whilst c now makes a profit (or a lower loss).

In a factory environment, there is potentially less of a choice in reducing fixed costs or sharing the costs out - whereas in transport, there is the flexibility to adapt (which we see -possibly too often).

(23 Jan 2014, 7:33 pm)CatsFast101 wrote I agree some people may be over exaggerating the cadets, I've always liked the cadets tbh, I think it was time for the 61 to be upgraded (they've had the cadets for years) and it's probably the time for the 5 to be upgraded too (cadets haven't been on there that long have they?). However as spares I'd love to see them stay a little longer really.
The old style interior I don't like very much and I didn't realise that 4922 still has old style interior.

(24 Jan 2014, 8:20 am)Dan wrote Red B9 6099 on 56s today. Left Sunderland around 10m ago.

(24 Jan 2014, 3:38 am)Coastliner700 wrote I can't believe the Cadets are been slated so badly. Compared to what other operators provide I've always thought that these are fantastic buses. The interiors may be a bit tired but if they're refurbished I could see them lasting another 4/5 years at least. The buses themselves seem a lot better those awful SPDs which, have been ready to go for years now. These I always feel were neglected and badly looked after given the quality of some SPDs elsewhere in the country.

I think it's wrong to shelve these buses to spare roles: I think they would be ideal on either East Durham or Tynedale Links where they would offer much improved quality and room for growth something that cannot be forgotten.

The 4 cadets that were swapped with Go South Coast for the Citaros are still going strong...

(24 Jan 2014, 12:12 am)Adam wrote Yeah, one alternative for the whole Contribution thing is for businesses to look at reducing costs as much as possible to help increase the profitability of them by varying ways such as reducing labour, improving efficiency and so on. You may as well admit it, you are secretly qualified to teach A2 Level Business

Ah yeah, of course it depends on the situation as each business and scenario is different, but in a general sense it is a good approach for a business to adopt. It is certainly interesting to see how the change/removal of one product affects the whole situation of others. To completely contradict all of what I've said, it's probably a lot harder for businesses working in the service sector to use the power of Contribution than businesses of other sectors.

(24 Jan 2014, 1:17 pm)mattdw92 wrote Just seen a fully branded Cobalt Clipper head up A167M by Manors/New Bridge Street. Got to say, wow. It's actually rather smart after me really not liking it on paper.

(23 Jan 2014, 9:14 pm)Tom wrote Anyone know where the X3 will turn around in Monkwearmouth and Fulwell, don't know the area well, but have no idea of possible places that the X3 could turn around in, possibly the new retail park in Monkwearmouth (were Tesco Extra is)?

(24 Jan 2014, 4:52 pm)Michael wrote 3 .. 56 B9's just all arrived together at park lane.

(24 Jan 2014, 5:21 pm)Adam Malarkey wrote I noticed there were a load of Metro Newspapers on the Seats/Floor of the 8 I got back to The Galleries from Sunderland This Afternoon, This can only mean that "The Fencehouses Popular Front" have been out in Force Today the Lime 8/78 - Andreos1 was it You

(24 Jan 2014, 5:03 pm)Adam Malarkey wrote From walking from Fawcett Street and up and around the Stockton Road Diversion after taking a Photo of 6100, I seen 3 in the space of about 7 Minutes after 6100 at around 2pm. So I would say that giving the timings of the Journey on the 56, I would say that the information you have givn Michael, up against mine is 100% Accurate.