Following yesterday’s announcement that East Thames Buses, the capital’s only publicly owned bus operator, is to be sold to the Go-Ahead group, it has now been been confirmed that taxpayers will receive £5m for the company.
A statement issued on Thursday by Go-Ahead says the operation has an annual turnover of £24m.
As part of the sale East Thames was granted new 5 year contracts for the routes it already runs, with an option to extend these for a further two years.
Yesterday a statement issued by Transport for London claimed projected savings of £30m a year meant the deal “represents much better value for money for fare and taxpayers. ”
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.”
Any details of the individual bus contracts and how much TfL is paying per year? £5m is decidedly on the low side, at first glance.
Not many assets I would have thought. Vehicles are more than likely leased as are the two garages at Mandela Way and Belvedere. I hear the lease on Mandela Way ends in the next year or so too. £5m would cover goodwill and fixtures and fittings I’d imagine and that’s about it. There would have been a few bidders too (NedRailways and East London Bus Group I’d expect), so the fact it went for £5m indicates how little there is to buy!
You can see tender prices on TfL’s website but it will probably take some time for the East Thames contracts to appear.
I doubt you will see ETB tender prices on the website at all. As to the cost of running the routes, we were already comparable to other operators, so where is the saving?
I think Boris is just selling off the family silver like Maggie did in the 80′s
If Boris really wants to save money on London’s transport, bring the whole lot back in house, eqaulise the pay with parity, standardise the fleet, standardise the management and stop paying for shareholders and bonuses. OOPS!!!! he can’t do that, that’s all his friends who got rich from privatisation………..
looks like you have shafted again good luck for the future .
£5m for a company which is turning over £24m a year? – even in this climate that seems incredibly cheap.
I sincerely hope Londoners vote Boris out before he causes real long term damage. It’s been a while since I’ve seen a pro-Boris comment on this website – they do tend to “only sing when their winning” – don’t they.
So now TfL have made this windfall, Boris Johnson has no excuse not to fund the South London Line, which he scrapped because he couldn’t ‘afford’ the £2.4 million per annum to run it
as an agency driver which duty include move at night unfit buses from Bervedere to M.Way depot, I would say that all nice staff form ETB will just end up in been bored at L. General less atractive conditions. Also I will lose my job
so what garage will be getting the routes as london genral is to far out at there will be loads of dead mileage also london central at bexleyheath got done by tfl for double plateing and fulesafireing loast mileage and if the routes out of london genral the passengers will suffer so the routes 132,n1 should come from bexleyheath the 42,185 from peckham or newcross and the others to london genral or camberwell but DNT MAKE THE PASSENGERS SUFFER ANYMORE
Well well looks like what Boris wants Boris gets if the board say no Boris removes them from the board where is the justice. So lets have a bit of unity and get Boris out as quickly as possible all he is interested in id shafting as many people as possible Bring back Ken.
One thing for sure he will not be able to mess up the transport for the olmpics thank God
45,000 bus drivers in London will not be giving Boris their vote
Obviously Boris is only thinking of himself yet again, but it will not wash at the next elections.
He has no interest in the London Transport system or the employees and their families In this economical climate there is the added worry for people not knowing if they have a job to go to.
Who in your opinion is worse Boris or our unelected P.M Brown?
I feel we have been sold down the river we have not been told. The truth about anything
We have been told nothing about the sale we have no security of our jobs and we all have families to support. If this sale is illegal lets get it stopped.
When we joint the company it was advertised with a final salary pension, now the sale of the company has gone through and the pension is an issue we have now been told it is not part of our terms and conditions.
I know a lot of the ETB drivers and my heart goes out to them. They are all going to suffer financially and they just dont know their heads from their butts at the moment. If Boris likes his bike that much, why dont he just get on it and sod off and leave a very profitable bus garage do what they are good at and provide the services for some very loyal customers. GET BORIS OUT NOW!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
I just can’t begin to express how the drivers at ETB are suffering we are like mushrooms left in the dark and having s*** thrown all over us all we are asking for is the truth but that is just too much to ask. we have been shafted good and proper this time. we have been shafted for years with pay deals but this is a real kick in the teeth. we have a real family atmosphere here and now we are all being split up. Cheers Boris you have done a real good job this time. the quicker you naff off the better it will be for all you are a waste of space
Its a known fact that London General dont want the staff of ETB just the routes. We have all been stitched up with our salary pensions the best thiing TFL could do is offer redundency packages to those members of staff that dont wish to work for the Go-Ahead group ( as many have done before and left for their own reasons ) .
With the money TFL are saving by not running their own In-House bus Company I am sure it wont drain there pockets and think it is the most decent thing that could be offfered to all members of staff who have put in hard work and effort into progressing the routes and service that ETB have gained after 9 years. The fat cats at TFL will say differently about ETBs routes but ask the question why If ETB are such bad profomers who would a Company like Go Ahead want to be labelled with a poor proforming company if it waasnt about money.
All staff at ETB should stick together and be united and delay this take over bid. I am sure National Newspapers would love a story regarding Tax payers waste of money in the economic climate that we are in. Lets see if Boris gets out of this one.
Torie fat cats win again East Thames Buses cost around 11 million to run per year yet sell us off to Go-Ahead for 5 million and they will be paid 24 million per year to run the same services as us let alone bonuses we have been sold down the river with out a paddle not even a thanks from TFL
THANKS TFL SOME OF US HAVE GIVEN YOU YEARS OF LOYAL SERVICE AND THIS IS THE THANKS WE GET, YOU SHOULD BE ASHAMED OF YOURSELVES
TOTAL STITCH UP, GIVE YEARS OF LOYAL SERVICE TO BE TREATED LIKE DIRT! THANKS TFL, THANKS BORIS! GO-AHEAD DO THE RIGHT THING & OFFER THOSE STAFF NOT WANTING TO TRAVEL MILES AWAY FROM THEIR ORIGINAL DEPOT A REDUNDANCY PACKAGE
I was gutted when I heard the news about ETB I was hoping deep down it wouldn’t come to this. I love the family atmosphere at Belvedere that I have enjoyed over the past four years. I only work part time at ETB (you will know who I am) and have made some great friends. Fingers crossed for all those full time drivers who future depends on what happens to East Thames.
I certainly didn’t vote for Boris and the sooner he goes before he causes more damage the better.
What the hell is going on over there leave you alone for 4 years london vote in head banging mad as hatter boris and now he has sold the best bus company ETB in London to go ahead more like go and give head what aload of Boris.Keep going lads you are all still my number one drivers and i miss you all
Yep we have been sold out like cattle
Well its one of them days I wold say that some people in the union are aid up members of gone ahead
if the union was any good they could sort out the staff why do he get done over ?
turn up to work day in day out for 6 years even in the Snow an we get told we have to move garage errrrr
look you load of winging bus drivers most of you were employed at stagecoach and east london and you were sacked your lucjy to still have a job,and some left on their own accord,well no one force you to go with go ahead join another company,as for boris i think hes doing a bloody marvelous job better than that ex ira supporter,cheers
it should say lucky to have a job