Public transport group Stagecoach reported today that bus travel was increasing, but its management teams are looking to reduce costs as it notices a decline in rail travel. In its interim management statement, Stagecoach said revenues from its UK wide bus operations were up by nine per cent, whilst the increase in rail revenue was lower than previously expected.
Highlighting the slowdown in rail revenues Stagecoach said for the same period last year, its rail revenue growth was 14 per cent. Stagecoach reported that for the 44 weeks ending in March 1, 2009 UK bus revenues were up nine per cent, rail revenues 6.7 per cent and its US business saw revenues rise 6.8 per cent. Virgin Rail, a joint venture between Stagecoach and Richard Branson's company saw revenues decrease by 0.6 per cent.
In a statement Stagecoach said it has put in place a plan to reduce costs and increase revenues across its railway business.
Public transport companies have been weathering the current economic storm and investing in their technology. Fellow Scottish transport company First Group announced last November that it was investing £15 million in passenger information systems after a successful first half of 2008. Virgin Trains has recently completed a successful outsourcing programme and an upgrade of its accounting and back office IT functions.