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Competing in Inverness

22nd December 1988
Page 14
Page 14, 22nd December 1988 — Competing in Inverness
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Which of the following most accurately describes the problem?

• Highland Omnibus's monopoly of Inverness town centre is under threat from a group of its own drivers.

Up to 300 of its 834 drivers are now considering joining a breakaway company which would operate a fleet of up to 15 mini-buses on the town's most profitable routes. The project, which is being masterminded by three Highland driv ers, is still at the planning stage but it is believed that a new service could start in March. New recruits would be expected to invest £1,000 to help set up the company.

In response to the move Highland Omnibuses is expected to postpone a 55% fares increase which was due to come into effect early in the new year. The TGWU is opposed to breaking up the monopoly because it fears for the long-term job security of the drivers who remain at Highland, but the union is not expected to block the move. In the short term, up to 30 new jobs would be created as Highland would have to recruit replacement drivers to maintain its present level of services.