Go-Ahead hit by flat regional bus passenger numbers

21st Oct 2014 07:34

Transport group Go-Ahead reported flat bus passenger numbers and said local transport chiefs in north-east England were set to take greater control of one of its key bus markets.The company also said engineering work had hit its London Midland rail franchise in the first quarter, slashing revenue from an expected 5.5% to 2.5%.Go-Ahead said first quarter commercial and concessionary passenger numbers in its regional bus operations were broadly flat year-on-year, with weakness in the north east, although revenue rose 5%.It said plans for a bus contract scheme giving the local transport authority in Tyne & Wear more control over local bus services had taken a step forward after approval by sub-committees of the North East Combined Authority.The full authority will now consider the proposals. Go-Ahead, which is opposed to local councils having more statutory control over service levels and fares, said: "This remains an ongoing process and we continue to believe a voluntary partnership agreement is the best outcome for passengers and taxpayers."Go-Ahead said subsidy changes had driven a 5% rise in revenue growth in its London bus business, where services and fares are controlled by Transport for London.Its Southern rail franchise, which is bankrolled to the tune of 80% by the taxpayer and is being folded into the new Thameslink operation next July, was trading in line with expectations.Its Southeastern franchise, which is no longer receiving revenue support but has been able to hike fares more than on other franchises in the past, traded strongly with an 8.5% rise in revenue.Chief executive David Brown said: "Overall, trading across the group has been robust and our expectations for the full year are unchanged."Shares rose 2p to 2448p in early trading in London.