FirstGroup to cut one thousand, seven hundred and fifty jobs in UK

FirstGroup has announced that the company is to cut three thousand, five hundred jobs in the year to 31 March 2010 – fifty per cent of these jobs will be lost between the UK Bus division (one thousand, one hundred) and the UK Rail division (six hundred and fifty). The job cuts form ‘half of a two hundred million pound cost reduction programme’ to ensure that ‘the group remains ‘robust’ in the current economic environment. The announcement was made as part of the company’s ‘pre-close trading update’ when the group forecast that the financial results for the year ended 31 March 2009 would be ‘in line with expectations’, despite the acceleration of the economic downturn.

First Great Western revenue below budget

FirstGroup revealed as part of the company’s ‘pre-close trading update’ that revenue at First Great Western had ‘been running at six per cent below budget in recent months’ - First Great Western has, however, been able to claim revenue support from the Department for Transport (DfT). Shortly after FirstGroup was awarded the new Greater Western franchise (incorporating the former Thames and Wessex franchises) the company agreed a number of changes to the contract with the DfT in return for the revenue support ‘cap and collar’ commencing after just two years, rather than the normal period of four years. First Great Western has therefore been eligible for revenue support since April 2008. When the revenue of First Great Western is between two and six per cent below budget, the DfT meets half of the shortfall – the DfT is also responsible for paying eighty per cent of any revenue shortfall of the train operating company of more than six per cent below budget.

South West Trains staff vote against strike action

The staff of South West Trains have voted against strike action over job cuts by a narrow margin – the RMT union accused South West Trains, after the ballot result was announced, of ‘fighting a dirty campaign by intimidating staff’.

Bus passenger satisfaction levels reach record heights

The latest bus passenger survey for Great Britain published by the Department for Transport has shown overall satisfaction above eighty per cent for the first time ever – the highest customer satisfaction was in England (excepting Greater London) at eighty-four per cent. Only seventy-two per cent of bus users in England (excepting Greater London) were satisfied with the key ‘value for money’ criteria, while only seventy per cent were satisfied with bus stop information.

Businesses consider that rail travel is ‘poor value for money’

A survey undertaken by Passenger Focus has revealed that a third of all businesses in Great Britain consider that rail travel provides ‘poor value for money’ – forty per cent of respondents stated that a fares reduction of thirty per cent minimum would be required for rail travel to provide ‘good value for money’. Passenger Focus considers that there is opportunity for the train operating companies to promote greater rail travel by the business community as many journeys are undertaken at off-peak times.

Network Rail defends delays to track renewals

Network Rail has defended the company’s decision to defer track renewals, while it investigates more efficient methods to undertake the work, following the decision by the Office of Rail Regulation (ORR) to demand that this work be completed at a reduced cost during the five year period commencing 1 April 2009. Train operating companies and passenger groups are concerned that delays to track renewal work will mean an increase in temporary speed restrictions which will impact adversely on train punctuality.

And finally,

Plymouth City Council has launched an initiative that bus users (both adults and children) will be able to travel all day for just fifty pence on Saturday 28 March and Saturday 4 April – all passengers will pay just fifty pence when they board the bus and will then get unlimited travel with the same bus company for the rest of the day, including journeys on ‘park and ride’ services. The offer, which is available on buses operated by First Devon and Cornwall, Plymouth CityBus and Target Travel, is limited to journeys within the City of Plymouth and to other locations including Heybrook Bay, Saltash, Torpoint, Wembury and Woolwell.