Route one magazine

[Ash]

"Rotala increase profits by 14%" Page 14 of edition 432 states the business growth into commerical markets has increased turnover by 26%, so is this the reason why they have lossed contracts like the NEC one so they can move more into commercial services?

[PM]

I read that too-I think Rotala are trying to rationalise-just think if they ditched some of Diamond's less lucrative routes-ie redditch ones and some contracts and kept 002, 16, 007, 56, 301, 404, 50 etc then even if turnover was lower then the profit margins would be higher. This is what I think they are trying to do tbf.

[Tony]

I read that too-I think Rotala are trying to rationalise-just think if they ditched some of Diamond's less lucrative routes-ie redditch ones and some contracts and kept 002, 16, 007, 56, 301, 404, 50 etc then even if turnover was lower then the profit margins would be higher. This is what I think they are trying to do tbf.

From what I know I doubt the 56 & 301 make much money. I suspect a lot of Rotala's profits come from their coaches and Bristol, where competeing with first who charge much higher fares than NXWM gives more scope for profits.

Tony

[Ash]

May be alot of diamonds money on competing services such as the 301/404E would come from the return tickets ive saw alot of passengers let NXWM buses go past to wait for the diamond bus because of the cheaper return tickets especially as the 301/404E run so regulary a diamond bus will soon turn up.

[Discodave]

May be alot of diamonds money on competing services such as the 301/404E would come from the return tickets ive saw alot of passengers let NXWM buses go past to wait for the diamond bus because of the cheaper return tickets especially as the 301/404E run so regulary a diamond bus will soon turn up.

Tony is right 56 and 301 hit targets every time in my short spell at diamond followed by the west broms 401/2/4 the yew tree 401e and then the ex ludlows stuff 002/417 the 16 and other brum stuff just broke even could not compete the returns do not really mak that much difference as a lot of competing routes have them but people still get on NXWM regardless

[PM]

Tony said the 56/301 etc didnt make much money tho? Tho I agree with you Dave-thats what id expect to be honest.

[Ash]

Im suprised about the 002 just breaking even as the buses are quite full but full of OAP's so i suppose not getting much revenue from them. The 16 and 59 when ive seen them always seem to look quite empty and doesnt suprise me they do poorly. The west brom services when i see them tend to do well with quite high loadings, hence i dont get why they use solo's and smaller darts on these services and the centro's on the 417.