First or Last? (69294)
The first bus in the new First Aberdeen green livery or the last bus in such colours before a whole new brand is launched?
FirstBus was officially put up for sale yesterday by its parent FirstGroup, a move that is likely to be completed within two years but most likely sooner.
Whilst FirstBus could be sold as a single entity to a private investment firm (with Brexit looming there isn't the same interest from interational bus groups to buy into the UK) FirstBus management seem more convinced the business will broken up into chunks. The Scottish business could be one of the first to go with Go Ahead expected to be installed as the favourite giving the group a presence in Scotland for the first time without bothering the CMA. Of course First Scotland would make a great fit with Xplore Dundee for National Express but the question is whether NatEx have the funds to afford it or the energy to deal with a potential CMA inquiry.
The risk for Aberdeen would be that in the last two years so much backroom functions have been transferred to Larbert and Glasgow that the business would not be able to stand on its own feet anymore unless a new buyer had its own functions available. Indeed if Lothian Buses accelerate their competitive attack on First West Lothian a potential buyer for Scotland may wish to cherry pick Glasgow leaving Scotland East and Aberdeen to slow contract over a two year period in the style of First Northampton leaving Aberdeen services to a gradual take over route by route by Stagecoach. With so many bus drivers in Aberdeen employed by agencies or in their first year of service now, redundancy costs would be the lowest in the group.
Whilst FirstGroup have committed to keeping their HQ in Aberdeen it would seem likely King Street would be sold as the contracted business would not have the sufficient HQ staff to justify such a size of building and would relocate to a smaller premise in Aberdeen. As such the building could be sold for use as a hotel or office or indeed could be demolished for student flats. There will be many a housebuilder eyeing up the site.
The positive to take from the announcement would be that after a decade of being used as a cash cow to pay of group debts, the profits from Aberdeen could potentially at last be used to invest in the network and its fleet but what is certain that the next batch of new buses for Aberdeen won't have First logos on them.
First or Last? (69294)
The first bus in the new First Aberdeen green livery or the last bus in such colours before a whole new brand is launched?
FirstBus was officially put up for sale yesterday by its parent FirstGroup, a move that is likely to be completed within two years but most likely sooner.
Whilst FirstBus could be sold as a single entity to a private investment firm (with Brexit looming there isn't the same interest from interational bus groups to buy into the UK) FirstBus management seem more convinced the business will broken up into chunks. The Scottish business could be one of the first to go with Go Ahead expected to be installed as the favourite giving the group a presence in Scotland for the first time without bothering the CMA. Of course First Scotland would make a great fit with Xplore Dundee for National Express but the question is whether NatEx have the funds to afford it or the energy to deal with a potential CMA inquiry.
The risk for Aberdeen would be that in the last two years so much backroom functions have been transferred to Larbert and Glasgow that the business would not be able to stand on its own feet anymore unless a new buyer had its own functions available. Indeed if Lothian Buses accelerate their competitive attack on First West Lothian a potential buyer for Scotland may wish to cherry pick Glasgow leaving Scotland East and Aberdeen to slow contract over a two year period in the style of First Northampton leaving Aberdeen services to a gradual take over route by route by Stagecoach. With so many bus drivers in Aberdeen employed by agencies or in their first year of service now, redundancy costs would be the lowest in the group.
Whilst FirstGroup have committed to keeping their HQ in Aberdeen it would seem likely King Street would be sold as the contracted business would not have the sufficient HQ staff to justify such a size of building and would relocate to a smaller premise in Aberdeen. As such the building could be sold for use as a hotel or office or indeed could be demolished for student flats. There will be many a housebuilder eyeing up the site.
The positive to take from the announcement would be that after a decade of being used as a cash cow to pay of group debts, the profits from Aberdeen could potentially at last be used to invest in the network and its fleet but what is certain that the next batch of new buses for Aberdeen won't have First logos on them.