First Aberdeen is revising bus fares across its network from Sunday 29 January due mainly to significant cuts in support that bus operators receive from the Scottish Government.
 
The Scottish Government has announced it will be implementing far reaching cuts to its BSOG (Bus Service Operators Grant) scheme which partly refunds some of the excise duty bus operators pay on fuel.  BSOG, is used by bus operators to ensure fares are kept as low as possible.
 
In addition, bus operators face a shortfall in funding from the Scottish Government’s concessionary fare scheme.  Under the scheme operators should receive two thirds of every concessionary fare.  However, the funding allocated by the Scottish Government is being capped and will run out.  As a result bus companies are helping to absorb the shortfall and therefore receiving significantly less than the 67p per fare outlined by the Scottish Government.
 
George Mair, Director of the Confederation of Public Transport (CPT), a body representing bus operators in Scotland said: “Bus operators face enormous challenges this year.  The Scottish Government’s decision to cut BSOG and the ongoing uncertainty about concessionary fares are huge financial challenges against a backdrop of rising costs and difficult trading conditions.  It is inevitable that many operators will ask their customers to pay more as a result.  We are considering what options are available to encourage the Scottish Government to look again at its decisions that will affect hundreds of thousands of bus passengers in Scotland.”
 
First Aberdeen confirmed that it will increase most of its fares, although the cost of a 12 weekly adult season ticket has been frozen.  Meanwhile the cost of a weekly ticket (bought off the bus) will increase to £16 – which is the same price as it was in September 2008.
 
Talking about the changes, David Stewart, Managing Director of First Aberdeen said: “We appreciate nobody likes it when prices go up, but I can assure customers that we are working hard to keep any increases to a minimum by making savings within our business to off-set cost increases.
 
“However. the cuts introduced by the Scottish Government have a big impact on our business, and indeed all bus operators, and as such regrettably fare increases are unavoidable.  For example as a result of the changes to BSOG and the high price of fuel, First Aberdeen’s fuel bill will increase by around 30% in 2012.
 
Mr Stewart continued: “Of course we want people to continue using our services.  Over the last year or so, we have worked incredibly hard and added resources which have resulted in more than 95% of our services starting on time and an improvement in punctuality of more than 10%.  That progress will continue in 2012.
 
“We believe that the cost of bus travel remains competitive, particularly when compared with other types of transport, for instance the total cost involved in running a private car (particularly when parking costs, insurance, tax and depreciation are also considered), or the cost of taking a taxi. 
 
“Our season ticket products in particular represent great value for money.  I’m pleased that we have been able to freeze the cost of an adult 12 Weekly ticket which allows customers to enjoy unlimited daily travel in Aberdeen for under £2 a day.”
 
First Aberdeen confirmed that the cost of an Adult Stage 1 fare will increase by 10p to £1.10 and an Adult off Peak day ticket will cost £4.20, an increase of 50p.  The cost of late night services have been frozen at £3.00, and the cost of an Adult 12 Week ticket also remains frozen (£160).  However, the cost of an adult weekly ticket will increase by £1 to £16 (which is the same price as September 2008), if buying off bus at a PayPoint outlet.
 
For more information about all the changes being made or to find out more about the various season tickets products that are available, log onto www.firstgroup.com/aberdeen.