Bus companies get £167mln rescue package as fare income drops 90%
Britain’s bus companies are to receive a £167mln bail-out package from the government to keep services running for essential staff to get to work.
The group’s First Bus arm provides about 20% of the UK’s regional services and is currently running the equivalent of a weekend service to ensure NHS, supermarket and fulfilment centre staff can get to work.
Bus services in Scotland and Wales are already being supported by the respective governments.
Go-Ahead PLC (LON:GOG) added that around 30% of revenue from its regional buses comes from contracts and concessionary income and in most cases local authorities continue to pay at pre-crisis levels.
Stagecoach PLC (LON:SGC) added that revenue from its local regional bus companies is around 15% of “normal” levels while services have or will be reduced by 60%.
Megabus.com inter-city coach services in England and Wales will all cease running by Sunday 5 April, it added.
Stagecoach said it has £500mln of availability liquidity with £94mln of net rail liabilities outstanding.