The retiring chief executive of Stagecoach is optimistic about the company’s prospects for the year ahead.
Sir Brian Souter, who stands down as chief executive in May and will become the company’s chairman, said growing concern over green issues and rising motoring costs will drive more people towards public transport.
He said: “We know many businesses and sectors are continuing to struggle with challenging economic conditions. Too many of our young people are also finding it difficult to get into employment.
“But, despite all of these challenges, I am optimistic about the year ahead. A sustainable transport system is central to the future of our economy and our local communities, and I believe Stagecoach is well placed to benefit from the opportunities ahead.
“Road congestion, increasing environmental awareness and higher motoring costs all point to public transport as the greener, smarter choice.”
He added that Stagecoach will continue to invest in its fleet next year.
“Stagecoach ended 2012 by acquiring new bus operations in the north-west of England,” said Sir Brian.
“In the coming year we will be looking to integrate these businesses and continue our successful strategy of offering the best value bus fares in Britain with continued investment in new buses.
“In North America, we have also been expanding our budget coach service megabus.com to California and Nevada, bringing the locations covered to around 120 in the United States and Canada. The objective in the months ahead will be to tap into the buzz it has created.”
Sir Brian also said he believes the group can recover from the West Coast rail debacle, a franchise his firm operates on a joint venture basis with Sir Richard Branson’s Virgin Rail group.
The joint venture company was given a two-year extension to its contract after originally losing the franchise to FirstGroup when it was put out to tender.
However, the Government withdrew the contract after discovering “significant flaws” in the bidding process.
Sir Brian said: “Despite the difficult few months the industry has faced, I believe we have a real opportunity to make the system better.
“Stagecoach is also involved in an innovative alliance with Network Rail on our South West Trains franchise where we have one management team responsible for the trains and the track.
“We think that kind of close co-operation is the way of the future and we’re proud to be leading the industry on developing this approach.”
Stagecoach is also backing the new ‘Bus for Jobs’ programme which allows job-seekers free travel.
Sir Brian said this was a “small but practical” step to help more young people back into work: 70% of Scottish bus routes will be free to job-seekers next month.
He also paid tribute to staff who helped deliver transport during the Olympics and Paralympics.
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