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.”