(16 Aug 2021, 6:50 pm)Storx wrote You do realise investments and cutting services aren't connected.But how did Arriva achieve a profit? Only investment since September 2014 in Northumbria has been 7541-52 and thats it. If Arriva/DB actually replaced the following (based on pre-covid):
The fact Arriva made a profit before the pandemic puts it in a much better place than GNE. If Arriva bought new buses then the cost of them would be offset from the benefits to customers and potential growth.
From an investors point of view GNE is by far the weakest out the three as there's no ability to grow the business and it doesn't make a profit anyway hence the only thing they can do is cut cut cut.
Funnily even known Arriva is so bad they've won the bus wars in both North Tyneside and Peterlee and they've done absolutely nothing, imagine if they actually done something what they could do.
- 10x 308 + 1x spare
- 13x X10/X11 + 1x spare
- 10x X15/X18 + 1x spare
That's 36x vehicles and based on a list price of £250,000 (could be more), that's nearly £9M. And........if they spent on the other outlying services too (X7/X8/X9 & X14/X20), that total would increase yet again.
So in short, Arriva have achieved a profit but what's their long term outlook? They're going to need to spend sooner or later and the only way they'll be able to afford to spend will be to reduce PVR's which means cutting services.
GNE do actually have some capacity to grow and funnily enough, Arriva would have big potential with the right investment and strategy going forward.
North Tyneside.........Stagecoach I'd say yes with the 22 but not much bite from Arriva considering GNE's recent investment & changes to the 309/310/311 not forgetting the potential for EV operation if the bid is successful.