Go-Ahead expands in the capital

Jul 31 2009 by Iain Laing, The Journal

TRANSPORT company Go-Ahead is to buy the assets of East Thames Buses from Transport for London for £5m.

The Newcastle company said that by taking over the running of the company, it will save Transport for London more than £30m over the next nine years by cutting operating costs and through economies of scale.

East Thames Buses, which has run bus services in south east London for nine years, will now be part of the Go-Ahead London Bus Company.

The London bus company, which has around 460 staff and 113 buses running on nine routes, turns over around £24m a year.

Go-Ahead’s group chief executive Keith Ludeman said “The acquisition of East Thames Buses provides us with an excellent opportunity to further develop Go-Ahead’s London bus business.

“This acquisition will enable us to leverage synergies from our existing bus operations and to enhance the quality of East Thames bus services to passengers.”

He said that its bus operations in the capital would now grow further, with a market share of 21.5%, more than 1,800 vehicles and over 5,500 employees.

It serves more than a million passengers a day.