Most of Reays vehicles are funded on credit I believe.He also seems to have issues with sticking with a bus type, hopefully he'll stick with E200s but who knows!
Unless you are a major operator it is very hard to go up against Stagecoach. In my opinion it should be done slowly and at a steady pace. For example Travellers Choice are doing okay, don't seem hostile or that ambitious but there is potential for growth there in the future.
Stagecoach has the capacity to simply out spend a competitor. Carlisles citi network is probably due an upgrade soon and once they do that Reays will have nothing on them.
I'm all for competition, drives down prices and gives consumers a choice. The only issues I ever have are with the operators, some of which are a bit dodgy...
The 2 stories below from Route 1 are an indication large operators can no longer bully small operators out of the market. The OFT and CC are watching the Bus industry very closely. Stagecoach and there bullying days are over.
Cardiff Bus
Cardiff Bus Managing Director David Brown has resigned this afternoon (Friday) with immediate effect.
It comes after Cardiff Bus was ordered by Competition Appeal Tribunal to pay £93,818 compensation for predatory conduct.
In a statement, Cardiff Bus Chairman Joseph Carter said: Cardiff Bus wishes to announce that they have accepted the resignation of David Brown, with immediate effect.
I would like to thank David for his contribution to the company over the last 18 years.
The Board would like to take this opportunity to wish David well for any future projects he undertakes.
At the Tribunals 10-day hearing, directors for now-liquidated 2Travel claimed nearly £20m in compensation.
But the Tribunals three Judges dismissed 2Travels claim for compensation in relation to loss of a capital asset, loss of a commercial opportunity, wasted staff and management time plus liquidation costs.
But it found in 2Travels favour for compensation for £33,818 (plus interest) for lost profit, and £60,000 for exemplary damages.
The Tribunal concluded that 2Travel was extremely badly managed and would have gone into liquidation when it did, even if Cardiff Bus actions never happened.
However, the Tribunal ruled that Cardiff Bus had deliberately decided to disregard the law, and its conduct was in cynical disregard of 2Travels rights. It also rejected much of the evidence given by David Brown as untrue.
North Devon Deal Off
North Devon deal off - Stagecoach has immediately withdrawn from its planned purchase of the North Devon part of First Devon and Cornwall. It follows an OFT (Office of Fair Trading) announcing that it is referring the acquisition to the Competition Commission (CC). Stagecoach said: Were extremely disappointed at the decision to refer what is a relatively small transaction to the CC. We do not believe we can justify spending further money and management time on what has already been a lengthy process. Giles Fearnley, First UK Bus Managing Director said: Were extremely disappointed by this (OFT) decision which may lead to services being withdrawn and puts jobs at risk. Were now considering our options and will consult with affected employees and stakeholders about the implications of the OFTs announcement.
SV
