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Kinch calls in OFT

11th May 1989, Page 18
11th May 1989
Page 18
Page 18, 11th May 1989 — Kinch calls in OFT
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Which of the following most accurately describes the problem?

• The Office of Fair Trading has been called in to intervene as mounting competition in Loughborough has led independent operator Gilbert Kinch to complain of predatory pricing and uncompetitive practices.

Kinch has competed on the main Loughborough-Leicester corridor since deregulation and has increased his bus fleet from 2 to 24. Midland Fox, the incumbent operator, has had to lower its fares to Kinch's levels, particularly on the main route through Mountsorrel.

Fox has now registered commercially on Kinch's other three routes — two town services and the Leicester route via Barrow. On the Loughborough town routes Fox runs three minutes ahead of Kinch and on the Leicester route, Fox is five minutes ahead.

Kinch alleges unfair competition in that Midland Fox's fares are half his, and that the buses used are unmarked Leyland Olympians from Crosville Wales. He claims that his opponent uses the same bus station stands and service number as he does and has poached eight of his regular drivers.