30 July 2009
The Go-Ahead Group plc (‘Go-Ahead’) has entered into
an agreement to acquire the assets of East Thames Buses from
Transport for London (‘TfL’) for a total cash
consideration of £5 million. TfL anticipates that the
operation of East Thames Buses’ contracts by Go-Ahead will
save it over £30 million pounds over a 9 year period as a
result of the combination of the sale of its assets, reduced
operating costs and economies of scale, thus providing
‘significantly better value for money for fare and
taxpayers’. The transaction is due to be completed by 5
East Thames Buses has operated bus services in Southeast London
for 9 years. East Thames Buses will operate as part of the Go-Ahead
London Bus Company.
East Thames Buses has around 460 employees and a fleet of 113
vehicles. It operates 9 routes for TfL including 2 school routes.
All contracts will be renewed with East Thames Buses for a 5 year
period from the date of completion, together with a 2 year option
for extension. The annual turnover of the business is around
All staff will transfer under provisions of the Transfer of
Undertakings (Protection of Employment) Regulations 2006.
Commenting on the transaction, 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.
“Go-Ahead’s bus operations in London, which includes
Metrobus, will now grow further with a market share of 21.5%,
utilizing over 1,800 vehicles and over 5,500 employees. They will
also serve over a million passengers each day. This business
provides an essential service in London which is continuing to see
increased demand for public transport as London’s population
continues to grow.”
For further information, please contact:
|Keith Ludeman, Group Chief Executive
||020 7821 3920|
|Jim Boyd, Group Corporate Affairs Director
||020 7821 3927|
|Citigate Dewe Rogerson
||020 7638 9571|
Notes to Editors
Go-Ahead is one of the UK's leading providers of passenger
transport services operating in the bus, rail and aviation services
sectors. Employing over 27,500 people across the country, around
920 million passenger journeys are undertaken on our services each
year. In addition to the travelling public, customers include the
Department for Transport (DfT), TfL, local authorities, British
Airports Authority (BAA) and major airlines.
Go-Ahead London comprises London Central, London General, Blue
Triangle and Docklands Buses and is the busiest bus operator in the
Capital with approximately 360 million bus journeys annually.
Through Metrobus we also operate routes in the Capital for TfL.
The majority of its routes are operated under five or seven year
contracts with TfL. These contracts are awarded under a rolling
tender programme. The company is also contracted to operate a small
number of routes for Essex and Surrey County Councils.
TfL operates Quality Incentive Contracts, designed to reward
excellent customer service, and publishes comprehensive quarterly
league tables of performance. Go-Ahead London consistently top
these quality league tables.
The average age of Go-Ahead London's fleet is only 5.9 years,
substantially below the industry average and the Government's
industry target of 8 years.
Go-Ahead London was the first bus company in the UK to introduce
buses powered by engines that meet Euro 4 standards and more
stringent EEV requirements. In partnership with TfL, it continues
to trial diesel electric hybrid buses which are expected to reduce
emissions by at least 30% compared to a conventional diesel
Go-Ahead is one of the UK's largest bus operators. With a fleet
of over 3,400 buses, we carry, on average, around 1.6 million
passengers every day. Our operations are focused on high density
commuter markets. We have a strong presence in London where we
provide regulated services for TfL. We operate deregulated services
in the north east; Oxford; the south east and southern England.
The rail operation, Govia, is 65% owned by Go-Ahead and 35% by
Keolis. It is the busiest rail operation in the UK, responsible for
nearly 30% of all UK passenger rail journeys through its three rail
companies: Southern (which includes the Gatwick Express),
Southeastern and London Midland. The Southeastern franchise will
include the operation of new high speed trains on the domestic
Channel Tunnel Rail Link into St Pancras International from 2009,
significantly reducing current journey times.
For further information about our rail franchises please visit
The Group's aviation services division is one of the UK's largest
independent providers of cargo services (primarily Plane Handling),
ground handling (primarily Aviance UK) and car parking (Meteor).
The division operates from 14 airports and services major airline
operators such as British Airways (BA), Virgin and bmi. Market
leading services within Meteor include 'Meet & Greet' and 'Pink