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Fox snaps at City Bus

27th April 1989, Page 20
27th April 1989
Page 20
Page 20, 27th April 1989 — Fox snaps at City Bus
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Which of the following most accurately describes the problem?

• Leicester City Bus's minibus operation in Loughborough is expected to be sold to neighbouring Midland Fox, less than two years after the operation took the town by storm.

City Bas's town network marketed as `Trippits' challenged the incumbent operator, Trent, in July 1987. By the end of the year, Trent was with drawing from the town in exchange for a 5% shareholding in City Bus.

Initial success turned sour, however, and the Loughborough Coach and Bus subsidiary is now a loss maker, having acquired heavy overheads, the Trent garage and additional services. With the current shake-up at Leicester, the subsidiary was singled out for diposal.

Subject to agreement by the Department of Transport, the Loughborough town services, the garage and 15 Optare City Pacers will he bought by Midland Fox for about £450,000. Fox has already expanded its operations in the town, following the purchase of the County Travel bus operation and is in vigorous competition with independent GK Kinch.

In the past two years, Midland Fox has acquired local independents Wreake Valley Travel, Fairtax, Astill &Jordan and the buswork of County Travel. It already competes on local services in Leicester with City Bus, and the purchase of LC&B will strengthen its position in the towns surrounding Leicester.

Leicester City Bus, on the other hand, is faced with a £0.5 million loss and is cutting back on vehicles and services in order to restore the company to viability.