STAGECOACH BONANZA

RMT helpline 0800 3763706 :: november 2007 :: RMTnews 7 B us and train operator Stagecoach expects to report annual profits ahead of expectations due to “stronger than anticipated revenue growth”. One of the reasons that Stagecoach is enjoying such a bonanza is the fact that one of its interests South West Trains, Britain's busiest commuter rail routes, hiked up off-peak fares by up to 20 per cent back in the spring. South West Trains (SWT), which promised the government £1.19 billion over 10 years in return for retaining its franchise, began charging the higher prices for those who travel into London Waterloo just outside the morning rush-hour. First-class fares also increased by between 15 and 20 per cent and the rises come on top of increases of up to 5.3 per cent. SWT also profited from this summer’s flooding by telling its staff to sell more expensive tickets to passengers forced to take diversions to avoid inundated lines. After incensing passengers by raising some fares by 20 per cent in May, SWT instructed guards and ticket office staff not to sell cheaper long-distance tickets via Oxford. A standard open return ticket from Basingstoke to Manchester via Oxford costs £115. Another route is via London but that ticket costs £262. Nice work if you can get it. As a result of this profiteering Stagecoach rail operations saw revenues grow by 15.7 per cent up in the 24 weeks to October 24 while bus operations climbed by 7.9 per cent, while in North America the transport group's revenues were up 4.2 per cent in the five months to September 30. Earlier this year Brian Souter, the chief executive of Stagecoach and his sister Ann Gloag collected £168 million after the group decided to up its capital return to shareholders by 75 per cent. In a trading update the company said strong results reported across its businesses reflected a growing demand for public transport and Stagecoach's continued focus on "product innovation". That’s one way of putting it. Stagecoach admitted the growth could be partially attributed to the introduction of ‘revenue-enhancing initiatives’ by its South West Trains franchise. "Some of these initiatives have been introduced earlier than had been assumed in the original franchise bid and the exceptionally good revenue growth in the UK rail division in the period partly reflects the benefits of this," Stagecoach stressed. The group revealed that like- for-like revenues for its Virgin Rail joint venture, which operates the West Coast and CrossCountry train franchises, also increased by 11.6 per cent over the same period. The reality for passengers is, of course, overcrowding and year-on-year over-inflation fare rises, while staff that have to face angry commuters every day. Stagecoach will announce its interim results for the six months to October 31 on December 5 and it is likely to be more good news for shareholders while more people take to their cars. R MT members can now join the Union’s Credit Union with even less fuss by simply filling in the form. Previously members had to produce two forms of identity and send them through the post. As a result of the introduction of a new system you simply complete the form provided. Credit Union administrator Nicola Hoarau said that under government legislation regarding money laundering the union had to check your identity and address but we can now do this electronically so you do not have to send any documents with your application. “These are not credit checks.’ “If you do not want the Credit Union to check your details by this method you can still produce two forms of ID,” she said. Credit Union members can now make your payments on a calendar monthly basis (28th of each month) or on a four-weekly basis which ties in with the pay cycles of many transport workers. The choice is yours so just indicate on the form. The Credit Union takes regular payments by Direct Debit although one-off additional or missed payments can be made by cheque. Members must make savings payments of at least £5 per month/four-weekly. The Credit Union AGM takes place on December 10 at Unity house and is open to all share holders. If you wish to join complete the application at the back of this magazine and return it to the RMT Credit Union at Unity House. For further information: Tel: 020 7529 8835 or email: c.union@rmt.org.uk IT’S EASY TO JOIN YOUR CREDIT UNION CompanyWatch STAGECOACH BONANZA BONANZA: Stagecoach shareholders enjoy bonanza while passengers and staff feel the pinch