Plans to keep London bus services running in the event of a private bus company going bankrupt (including administration and liquidation)?
Request ID: FOI-1141-2223 Date published: 05 September 2022
You asked
Dear Transport for London
Recently, two private bus companies outside of London (Yellow Buses in Bournemouth and Powell’s Bus, part of HCT Group in South Yorkshire) closed down which led to some bus services transferred to other bus companies.
Then I realised this had happened in the past for TFL and London Buses.
During December 1999, London Transport established East Thames Buses to keep bus services running after Harris Bus Company went into administration.
Reference:
https://tfl.gov.uk/info-for/media/press-releases/2008/december/tfl-to-consider-whether-east-thames-buses-could-offer-better-value
Then in August 2002, a bus company named Durham Travel (trading as London Easylink) went bankrupt, which affected two of contracted bus routes as multiple bus operators were given short notice to provide a 'skeleton service'. Several months later (April 2003), TFL owned bus company East Thames Buses was called in to take over services previously operated by London Easylink.
References:
http://web.archive.org/web/20021028075601/http://www.tfl.gov.uk/tfl/press_443.shtml
https://www.londonbuses.co.uk/_routes/current/185.html
http://news.bbc.co.uk/2/hi/uk_news/england/2208620.stm
Therefore it has prompt me to ask you questions if the event occurs in the present time.
My questions as follow:
1. What plans and measures do TFL/London Buses have in place to keep bus services running in the event of a bus company going to administration and liquidation?
2. Section 22 of Bus Services Act 2017 prohibits a relevant (local) authority forming a company to provide bus services, does it apply to TFL?
3. If not, does TFL plan to create a new bus company (similar to East Thames Buses) to replace the defunct bus company to keep the bus services running?
We answered
Our ref: FOI-1141-2223/GH
Thank you for your request received by Transport for London (TfL) on 9 August 2022 asking for information about bus services.
Your request has been considered under the requirements of the Freedom of Information Act 2000 and our information access policy. I can confirm that we do hold the information you require.
The failure of one of our bus operators has always been a strategic risk. Each circumstance is different, bus as recent cases have shown a trade sale is normally the preferred option. TfL does hold on Operator’s licence through one of its subsidiaries which means that in appropriate circumstances it could operate buses directly, however there are no plans to resort to that. There are no plans therefore to form a new company.
If this is not the information you are looking for, please do not hesitate to contact me.
If you are not satisfied with this response please see the attached information sheet for details of your right to appeal.
Yours sincerely
Graham Hurt FOI Case Officer FOI Case Management Team General Counsel Transport for London
