10th Aug 2020 08:09
(Alliance News) - Transport service providers Go-Ahead Group PLC and FirstGroup PLC on Monday both noted the UK Department of Transport announcing a funding round of GBP218.4 million on Saturday.
The funding package - which is under the Covid-19 Bus Service Support Grant Restart - will last for eight weeks, after which weekly funding of up to GBP27.3 million will be made available until a time that it is no longer ended.
In addition, the UK government has announced plans to publish a National Bus Strategy, to set out its plans for supporting continued bus services across the country.
Aberdeen-based FirstGroup in particular welcomed the funding, and noted Scotland's announcements that it would spend an additional GBP68 million to extended to November 8 the similar funding scheme it has in place for its bus operators.
The group said the funding programme has already helped to improve bus service capacity, with First Bus operations across England having increased operated mileage to 90% of pre-pandemic levels from 40%, while passenger volumes have increased to 40% from 10% of normal levels since the low point in March.
"As communities return to work, services reopen and people begin travelling again, we are seeing customers returning to public transport. However, passenger numbers are still below 50% of pre-Covid levels across our networks. While social distancing is in place and sections of society remain closed, we welcome the government's continued support to keeping these critical services running," said Go-Ahead Chief Executive Officer David Brown.
"The further funding packages confirmed by the UK and Scottish Governments enable us to keep people travelling safely on our essential services, allowing social distancing to be maintained on our vehicles. Bus networks are vitally important to local economies, both now as people return to education and workplaces, and in the future as they offer a sustainable transport alternative to the car," said FirstGroup CEO Matthew Gregory.
Shares in Go-Ahead were up 2.5% at 607.00 pence in London on Monday morning, while FirstGroup shares were 7.0% at 41.50 pence.
By Dayo Laniyan; [email protected]
Copyright 2020 Alliance News Limited. All Rights Reserved.
Related Shares:
GOG.LFirstgroup