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Cover Story Detail: Issue Issue 01 18 Jun 2009

Too focused on short term profit?

Bus operators have pretty much a clear hand on what they do with fares, but critics say they are still taking a very formulaic view on the subject.

FirstGroup has been accused of an ill-judged strategy in West Yorkshire which could damage the long term prospects of the business in the quest for maintaining short-term profitability. Two consecutive 8% fare rises were implemented last year followed by service cuts of 20-25% as the recession has taken hold. Based on research from consultancy TRL...

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