Post by jackh on Jul 5, 2008 18:18:34 GMT 1
Arriva buys rival service offering cheaper bus fares
Jul 1 2008 by Rhodri Clark, Western Mail
THE biggest public transport operator in Wales is paying a small bus company to withdraw a rival service which offers passengers cheaper fares.
One AM yesterday questioned the morality of Arriva’s move, which will leave public transport users to pay either Arriva bus fares or Arriva train fares.
A local councillor says he will ask competition authorities to investigate, and the Welsh Consumer Council urged AMs and the Welsh Assembly Government to summon Arriva to explain its actions.
Some of Arriva’s fares are more than double those of its rival, Llanberis-based KMP, but Arriva will not cut its fares to lessen the blow to consumers when KMP disappears.
The route lies entirely in the former European Objective One area of North Wales, and includes the deprived former quarrying town of Penmaenmawr, near Conwy. A five-mile round trip from Penmaenmawr to Llanfairfechan costs £3.80 on Arriva and £1.70 on KMP.
Since 2004 KMP has competed with Arriva from Llandudno to Bangor, and on to Caernarfon or Llangefni. KMP bought new low- floor buses, offering easier access than some Arriva buses.
Arriva is rumoured locally to be paying more than £1m for the seven new buses and for KMP to withdraw on August 4. Arriva will not confirm the price because of commercial confidentiality.
Arriva will not replace KMP’s services on the core part of the route, Llandudno-Bangor. The number of buses will drop from seven per hour to the four which Arriva already provides.
However, Arriva has pledged extra services between Bangor and Caernarfon, to make up for the lost KMP ones, and to extend one service from Llandudno through to Llangefni on Anglesey.
Eleanor Burnham, Lib-Dem AM for North Wales, said: “We’ve got to ask ourselves about the morality of this. If it means people are getting less choice of competitive routes, I don’t think we should condone it.”
Rhys Evans, acting director of the Welsh Consumer Council, said: “From a consumer point of view, it sounds outrageous. It sounds hugely anti-competitive.
“The consumers don’t have much voice in this. You can’t vote with your feet if you don’t like the way Arriva are behaving.
“There’s a whole review of delivery of public services going on, where the Welsh Assembly Government are trying to make sure that all the services are community focused. This action seems to be completely at odds with that.”
Ken Stevens, county councillor for Penmaenmawr, said he would complain to the Office of Fair Trading. “It’s a cynical ploy by Arriva just to bump up their profits. They’re doubling the fares for the poorest in the community, who can ill-afford it. It blackens the name of Arriva.
“Penmaenmawr isn’t a rich place. Consumers are choosing KMP because they’ve got cheaper fares and are more user-friendly.”
Arriva claims the changes to services will be “seamless, with major benefits for customers”.
Tom Balshaw, operations director for Arriva North West and Wales, said: “Our range of day and weekly tickets offer great value for regular travellers. For example, the Bangor zone weekly ticket offers unlimited travel all week from as little as £1.40 per day.”
Jul 1 2008 by Rhodri Clark, Western Mail
THE biggest public transport operator in Wales is paying a small bus company to withdraw a rival service which offers passengers cheaper fares.
One AM yesterday questioned the morality of Arriva’s move, which will leave public transport users to pay either Arriva bus fares or Arriva train fares.
A local councillor says he will ask competition authorities to investigate, and the Welsh Consumer Council urged AMs and the Welsh Assembly Government to summon Arriva to explain its actions.
Some of Arriva’s fares are more than double those of its rival, Llanberis-based KMP, but Arriva will not cut its fares to lessen the blow to consumers when KMP disappears.
The route lies entirely in the former European Objective One area of North Wales, and includes the deprived former quarrying town of Penmaenmawr, near Conwy. A five-mile round trip from Penmaenmawr to Llanfairfechan costs £3.80 on Arriva and £1.70 on KMP.
Since 2004 KMP has competed with Arriva from Llandudno to Bangor, and on to Caernarfon or Llangefni. KMP bought new low- floor buses, offering easier access than some Arriva buses.
Arriva is rumoured locally to be paying more than £1m for the seven new buses and for KMP to withdraw on August 4. Arriva will not confirm the price because of commercial confidentiality.
Arriva will not replace KMP’s services on the core part of the route, Llandudno-Bangor. The number of buses will drop from seven per hour to the four which Arriva already provides.
However, Arriva has pledged extra services between Bangor and Caernarfon, to make up for the lost KMP ones, and to extend one service from Llandudno through to Llangefni on Anglesey.
Eleanor Burnham, Lib-Dem AM for North Wales, said: “We’ve got to ask ourselves about the morality of this. If it means people are getting less choice of competitive routes, I don’t think we should condone it.”
Rhys Evans, acting director of the Welsh Consumer Council, said: “From a consumer point of view, it sounds outrageous. It sounds hugely anti-competitive.
“The consumers don’t have much voice in this. You can’t vote with your feet if you don’t like the way Arriva are behaving.
“There’s a whole review of delivery of public services going on, where the Welsh Assembly Government are trying to make sure that all the services are community focused. This action seems to be completely at odds with that.”
Ken Stevens, county councillor for Penmaenmawr, said he would complain to the Office of Fair Trading. “It’s a cynical ploy by Arriva just to bump up their profits. They’re doubling the fares for the poorest in the community, who can ill-afford it. It blackens the name of Arriva.
“Penmaenmawr isn’t a rich place. Consumers are choosing KMP because they’ve got cheaper fares and are more user-friendly.”
Arriva claims the changes to services will be “seamless, with major benefits for customers”.
Tom Balshaw, operations director for Arriva North West and Wales, said: “Our range of day and weekly tickets offer great value for regular travellers. For example, the Bangor zone weekly ticket offers unlimited travel all week from as little as £1.40 per day.”