Definitely think if they drop the frequency of some services and tap into other routes challenging the likes of Whitelaws, JMB it could boost the profits. New routes means potential new passengers. Route frequency drops less empty-ish buses running around.
Running such competitive services at a time when the economic climate is an absolute disaster is a non starter.
Whitelaws and First do not compete with each other and as mentioned here there is an agreement over staff travel and the relationship between the two goes back decades.
First tried to get a slice of Lanark against McKindless on the 41s and also tried a Glasgow to Lanark service and they all died a miserable death.
First have tried also to go head to head on the Cumbernauld locals against Canavans on the Cumbernauld locals and Cumbernauld to Kilsyth.
We wont even mention the Edinburgh bus war in far too much detail either. This was the fantastic bus war where First squandered millions of pounds and even their own senior management thought it was a disaster. "they're kicking us up and down the street" was the quote given by the Managing Director to the Edinburgh Evening News.
First have historically found it very difficult to muscle into a new market or even take over routes that were not theirs to start with- X6 and X7 to Bridge of Weir and Kilmacolm, the X17 from Glasgow to Duntocher and the crazy idea of the 240x that ran from Glasgow to Peebles many many moons ago.
First have proven that they can try to muscle into a route they think is profitable, and then run on it, find its not profitable and the established operator carries on.
Leveraging customers from an established operator when you have demoralised drivers, tatty buses, cash vaults and bandit screens is a hole to throw money in, when your established operator has the loyality, knows the market and is more customer friendly and in the case of Whitelaws - they have been the established operator for decades. Competing on routes costs money- your not filling the buses to capacity as your sharing the market and you're probably going to have to charge artificially cheaper fares than elsewhere in your established territory to match the competition.- as happened in the Edinburgh bus war.
Whitelaws territory is all isolated towns and villages that are all spread out over areas of open land, its not exactly buckets of cash. Their cost and operating costs base is a world apart from First's.
First's reputation in Lanarkshire isnt overly great at the best of times and to be seen to be withdrawing the X1 and cutting other services to great public outcry in its established territory to then go head to head with Whitelaws and JMB over territory they have never shown any interest in or failed is going to be an open goal to the media, disgruntled customers and MSPs.