Bus Éireann announces service cuts

Bus Éireann is to implement a number of “service changes” from next month and seek 250 voluntary redundancies as part of a restructuring…

Bus Éireann is to implement a number of “service changes” from next month and seek 250 voluntary redundancies as part of a restructuring to cope with falling passenger numbers.

The company said today the downturn has seen a 10 per cent drop in demand for public transport and it could no longer afford to operate the same level of services.

It said the first phase of its “cost recovery plan” would see the closure of eight routes and changes made to the frequency of service on 22 others from February 28th.

The company wants to alter the frequency or route on around 70 of its services, and discontinue another 30 routes in total.

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It said the phasing in of changes to services with low customer support had been recommended by the Labour Court and the independent Deloitte report.

Acknowledging the changes would pose difficulties for many customers, Bus Éireann insisted its cost-cutting measures were vital for the company's survival.

The plan will also see a reduction of 250 positions across the organisation, along with alterations to work practices and terms of employment.

Bus Éireann said it had received the required number of applications for its voluntary redundancy scheme under the plan.

Some of the proposed changes to employment and other cost reduction measures have already begun.

The company said there were a small number of services across the country that had “very low customer support” and which were no longer sustainable.

“Such services often have five passengers or less per departure. In many such cases, the fare revenue from these customers doesn't even cover the fuel for the bus let alone the wages for the driver or the maintenance of the vehicle,” Bus Éireann said.

Bus Éireann must curtail such services otherwise it would have no alternative but to make changes to services that have much higher levels of support, it added.

Eoin Burke-Kennedy

Eoin Burke-Kennedy

Eoin Burke-Kennedy is Economics Correspondent of The Irish Times