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English deal for Traction

16th February 1989
Page 16
Page 16, 16th February 1989 — English deal for Traction
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Which of the following most accurately describes the problem?

• Minibus company Inverness Traction hopes to secure its future by.mergjng with a private English firm, and Traction managing director Malcolm Vaughan says a deal will be struck soon.

Traction has run into difficulties because it was undercapitalised when it began operations on 30 May last year. "The company has always showed a small, but steady profit but lack of capital was our Achilles heel," says Vaughan. "We hope that by joining an established group we can achieve a firmer base on which to build."

It remains to be seen whether Traction's director cooperative (19 directors and 20 employers) will survive the transition.

Traction has been embroiled in a bitter battle with Highland (Scottish) Omnibuses since it decided to challenge the monopoly of Scottish Bus Group members. Vaughan says the fierce competition on town centre routes shows no sign of slackening. "If anything, it is becoming more intense," he says. "We cannot beat a government-backed operation, so we hope to become more powerful by joining a group."