London bus takeover should not affect investment elsewhere says Stagecoach

Selkent double decker bus and breakdown truckToday’s news that Stagecoach is to buy the East London Bus Group for around £53 million is interesting if only for the fact that the current owners bought the business in 2006 for a price of around £264 million – from none other than Stagecoach! But what has this got to do with Manchester Transport? Not very much, if it weren’t for the following paragraph in the official announcement to the financial markets:

We plan to finance the majority of new vehicles for the business with operating leases that match the related contracts with Transport for London. The operating lease model will increase the London business’ costs. However, it will mean that the fleet strategy of our non-London UK Bus operations is less dictated by owned vehicles that are no longer required by the London business being forced upon the non-London business. This should in turn avoid any dilution to our successful strategy for our non-London UK Bus operations.

In the heady days of Ken Livingstone’s expansion of the London bus network to cater for the introduction of congestion charging, it seemed like the provinces would get London’s cast-off vehicles. But now Manchester seems to be the jewel in the crown of Stagecoach’s UK bus operations, with well over 300 brand new low floor double deckers introduced in the past five years and many more nearly-new vehicles being sent to other parts of the UK. If the statement is to be believed, then hopefully it should be business as usual with lots more new vehicles entering service here in the future.

Elsewhere on the internet, First Group’s commercial director Leon Daniels blogs on the subject, whilst Omnibuses Blog must surely be regretting not following up with his scoop!

[Image credit: “Coupling up!” by kenjonbro on Flickr]

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About James McCollom

Web geek and public transport user
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10 Responses to London bus takeover should not affect investment elsewhere says Stagecoach

  1. Watcherzero says:

    Offtopic slightly, Dft has announced the winners of the second batch of Green Bus Fund cash, GMPTE won 21 buses, 17 for yellow school and 4 to operate Media City bus services, meanwhile MAG won 5.

    http://nds.coi.gov.uk/clientmicrosite/Content/Detail.aspx?ClientId=202&NewsAreaId=2&ReleaseID=415979&SubjectId=36

    Youll remember the first batch had heavy wins for GM firms and we have seen the first arriving on our streets recently.

  2. Watcherzero says:

    Correction, 15 yellow.

  3. Simon says:

    Manchester Loses Mark Threapleton to the new takeover too sadly. So a new MD for Manchester is on the cards.

    • James McCollom says:

      Thanks for the info – I wish him well in London, and hope that his successor builds on the work done here in Manchester.

  4. I wish Mark well on his move to East London. That would make him the first Greater Manchester area bus boss to move to the capital since Ralph Bennett. I hope he does as good a job with the London 2012 Olympic Games buses as he did with the 2002 Commonwealth Games.

    I hope our modern day equivalent to Albert Neal keeps up the good work, whoever he or she may be.

  5. Rob says:

    I thought First had the contract to supply buses to the Olympic Games?

  6. Simon says:

    Only the spectators. Everyone else is travelling Stagecoach,

  7. Pingback: Management reshuffles at Stagecoach | Manchester Transport

  8. Pingback: Manchester plays host to Olympians | Manchester Transport blog

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