NBC still in the black despite bad winter
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DESPITE the effects of the exceptionally severe winter of 1978-79 on passenger levels and vehicle maintenance and in spite of spiralling inflation, the National Bus Company still made a surplus of £6.2m on its revenue account after charging historic depreciation, interest and taxation.
These facts appear in its 1979 Annual Report.
Although many subsidiary companies have had to raise fare levels, the average passenger decline on services was only 1.3 per cent. However NBC is aware that by -current cost accounting,which reflects the cost of replacing vehicles as they need renewing, the group had a £15m shortfall last year.
The Report warns that, with the disappearance of bus grant, the constraints on local authority support for socially desirable services, and the
effects of the new Transport Bill, in future NBC may have to concentrate on economic viability — a fact that could mean the withdrawal of many less profitable bus services.