Manchester bus franchising

[Barney]

RE: Manchester bus franchising

(22/01/2023 11:47)Mayneway Wrote:  Something very similar happened a few years ago. First/Queens Road lost the free bus contract to MCT. It came as a massive shock and they informed TFGM they would be closing the depot and withdrawing some routes and transferring others. After some crunch meetings it was decided to let them keep the contract.
Potentially when more franchise contracts are announced stagecoach could potentially do the same thing and start withdrawing services to cause a massive impact.

I think that you are comparing apples with pears as the game and the rules have now changed.

Stagecoach has been opposed to franchising since it was first mooted and eventually went to the High Court in a vain attempt to get it stopped. The judicial review found against Stagecoach (and Rotala) and reluctantly Stagecoach was obliged to bid for the first tranche of franchises for the Wigan and Bolton areas which proved unsuccessful for them.

When the next two tranches are introduced Stagecoach, like every other operator, will have to submit bids if it wishes to continue to trade in these areas. To suggest that Stagecoach might announce large scale service reductions if it isn't awarded the franchises it regards as its right is possible but highly unlikely for several reasons.

Firstly, its employees will in essence be used as a bargaining chip which would probably lead to industrial action which would then result in the market value of the company as a whole being adversely affected. However, the employees themselves will survive as, whoever wins, the successful winners of the next two tranches will still need the staff and facilities lost by Stagecoach.

Secondly, any attempt to influence the bidding process by threatening to prematurely withdraw its current services would be seen as acting in bad faith and an attempt to illegally influence a open bidding process. This in turn would probably lead to another day in court for Stagecoach's lawyer though not at their behest.

Thirdly, it would appear that many other areas of the country will soon follow TfGM's lead and adopt a franchising system. When this happens - probably within the next few years - these areas will remember how Stagecoach attempted to bully and blackmail TfGM and again may well have an adverse effect on any bids they present.

One of the main arguments put forward in favour of franchising is that it will stop major operators from putting profit margins before passenger needs and, if Stagecoach does what you think it will do, you have just justified the franchising model.