Only fit will survive warns coach chief
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COACH OPERATORS are now in an era of "survival of the fittest", Wallace Arnold operations director Geoffrey Steel said last week in his presidential address to the Omnibus Society.
There have been business failures and near failures and there will be more in the future among those who have not adjusted to new financial and operating strictures brought about by deregulation and competition within coaching, other holiday competition, the recession and "crazy vehicle investments".
There might even be a col lapse of the dealers who traded in these vehicles, warned Mr Steel. "Good strong financial control will decide survival," he added. Regular monthly accounts were needed to control costs and monitor revenue.
"Too many operators are only getting modest mileages out of high investment vehicles," warned Mr Steel. One Continental shuttle a week for 20 weeks with a £70,000 to £80,000 vehicle spelt ruin. Getting two shuttles was vital, but it took a bit of doing.
Wallace Arnold was achieving this for a customer who recognised the need to get the scheduling of drivers right.
Mr Steel criticised the "lamentable delay" in operator licensing showing the necessary teeth. He deplored the low standards required for the demonstration of good repute, financial standing and maintenance facilities.
There should be tough written standards set down, he felt.
Action was needed by the Traffic Commissioners if the revenue of the whole industry was not to be diluted, causing business failures.
Mr Steel called for full examination of company accounts and a "review interview" procedure for existing 0-licence holders.