WMT slams the trimmers
Page 16
If you've noticed an error in this article please click here to report it so we can fix it.
• PSV operators who trim operating costs too far in order to win passengers could be threatening the entire public transport network. That is the view of West Midlands Travel's director of finance and marketing Don Colston.
Colston maintains that cut price fares charged by small operators, taking on larger companies hie WMT and Midland Red, make no allowance for vehicle replacement. In years to come they could find themselves threatened by a combination of out-of-date vehicles and increasing maintenance costs, he says.
"At WMT we have set our fares structure at a level which allows us to generate enough money to buy new buses as necessary," says Colston. "If you don't make this kind of provision, your fleet wears out very quickly."
"If small operators compete by fixing fare levels which only cover ordinary operating costs, like fuel, pay and basic engineering, sooner or later they will have to start eating into their capital," warns Colston.
Commenting on a recent challenge to WMT by an outside operator on one of its city centre routes, Colston reported that they are running ex-Manchester second-hand buses, "If they come in with low prices they will not be generating enough to replace the vehicles."