Bus firms have a ticket to ride

BUS operators will not pay to use the new Luton Dunstable Busway, it has emerged.

Arriva and Centrebus are two companies that have signed up to use the controversial £89 million busway when it opens in spring 2013.

But according to Local Transport Today the companies will not pay ‘access fees’ to use the busway because it would ‘undermine the viability of services’.

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On the Cambridgeshire Guided Busway, which opened last month after two years of delays, operators are being charged to use the route, with the money being ploughed back in to cover maintenance and operating costs.

Luton Borough Council said allowing the bus firms to use the route for free had always been part of the plan.

A spokesman said: “Luton’s plan, on which funding was secured, does not include charging bus operators.

“We do not expect costs to rise beyond those already anticipated and charging at some point in the future is a simply an opportunity for consideration.”

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The running costs of the busway are expected to be £400,000 per year, which will be split between Luton Borough Council and Central Beds Council.

The route is being constructed by BAM Nuttall, the same company responsible for the Cambridgeshire busway. The firm will be responsible for any defects on the busway for the first five years, and for major defects for 12 years.

Kevin Hawkins, commercial director of bus operator Arriva, told Local Transport Today: “Any access charges would have to be covered by income generated and we would agree that, at least in the early years of operation, the services would not be able to absorb such charges.”

CentreBus commercial director Dave Shelley told the magazine: “To operate services on the busway will be a significant investment for us, and it will be essential that there is a return on that investment.”

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“However, government cuts to the Bus Service Operators Grant in April 2012, increased statutory employment costs for our business, higher fuel prices, and a reduction in local government funding for concessionary bus travel are presenting challenges which need to be carefully considered during our discussions with both Luton and Central Bedfordshire Councils that are ongoing.

“At this stage we are not ruling out any options.”

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