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Service social, not profitable

24th November 1979
Page 22
Page 22, 24th November 1979 — Service social, not profitable
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Which of the following most accurately describes the problem?

MIDLAND RED's Market Analysis Project in the Shropshire area was the first of the MAP networks that set out with the specific aim of not producing a viable network because it would have been socially unacceptable to do so within the county.

This was made clear by the company and Salop County Council at a Press conference to publicise the launch of the new network in the county under the brand name of "Hotspur". The network is to be subsidised by just over £200,000 by the county.

To cover gaps in the network, the county and Midland Red jointly have assisted independent operators to introduce services. Where this has not been possible, needs will be covered by unconventional services such as post buses and community cars.

Tom Young, Midland Red's marketing manager, said a viable network could not be produced which was acceptable because the county had a very high percentage of rural areas with heavy car usage.

There were very few parts of the county which relied predominantly on bus services for travel. The company were presently losing £500,000 in Salop which was not covered by subsidy.

Tags

Organisations: Salop County Council
People: Tom Young