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10th October 1969
Page 73
Page 73, 10th October 1969 — , would like to know what it costs to run
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Which of the following most accurately describes the problem?

a bus on city stage services per mile. Also what profit margin do they work to AThe cost per mile of running a bus on city stage services varies according to the size of vehicle, the mileage run, and whether one or two shifts are worked by the crews operating the bus. As the miles per week increase, so does the cost per mile decrease.

Some examples are as follows: 51-seat diesel-engined single-decker, two shifts, mileage per week 800, operating cost per mile 45.56 pence: 1,000 miles--39.80d; 1,200-35,96d; 1,400-33.21d. Doubledecker, 70 seats, 800 miles-52.20d: 1,000 —46.15d ; 1,200-42.12d : 1.400-39.24d, As for profit margins, these are usually very minimal, and most municipal city operators are satisfied if they can at least cover the cost of operation, let alone make a profit. In any case, it is not usually the aim of a city operator to make a profit in the same way as a private company where there are shareholders to consider. Any "profit" made is usually transferred to a reserve fund for the purchase of replacement buses.

It is significant that the majority of municipal bus operators have to apply to the Ministry of Transport for loan sanction to purchase replacement vehicles.

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Organisations: Ministry of Transport