Shares in Scottish transport giant FirstGroup received a healthy boost yesterday after the UK Government announced a bailout package for bus operations south of the border.
Aberdeen-based First-Group saw the value of its stock surge more than 8% by early afternoon, while Perth-headquartered rival Stagecoach Group was also up – by around 5% – after both firms reassured the market they can keep bus services running for key workers during the Covid-19 crisis.
Support for bus operations in Scotland and Wales had previously been announced by their devolved governments.
In Scotland, bus service operators’ grants and concessionary fare support will continue as before the pandemic.
Demand for buses has fallen by about 90% due to the virus.
The Department for Transport (DfT) said bus operations in England were eligible for £167 million in new funding to help them cope with the loss of revenue.
FirstGroup chief executive Matthew Gregory said: “I am pleased that by working with the DfT, devolved government and local authorities, we are demonstrating that we are able to secure the necessary support to continue running bus services, recognising the unique and essential role they play in sustaining our local economies and communities.
“These arrangements will enable us to continue working closely with councils and our other local stakeholders to ensure that key workers can reach their destination, be it hospitals, supermarkets or distribution centres.”
Mr Gregory added: “When the present restrictions on travel are over, we will be ready to work quickly to reconnect people and communities as the country emerges from the effects of the pandemic and a return to normality is sought.”
Stagecoach chief executive Martin Griffiths said: “It is welcome recognition of the importance of maintaining bus services at this time and it will enable key workers to travel to work, as well as ensuring communities can still access food, medical care and other essential services.”
But Stagecoach announced its Megabus coach services in England and Wales were being temporarily wound down and would be suspended by Sunday.
