In the last year, mid contract break clauses have been invoked in respect of nearly 30 bus routes. While the overwhelming majority of these have related to service currently provided by RATPDev Transit London subsidiaries, both Metroline and Stagecoach London have also sought to offload loss-making contracts that were largely based on market conditions around four years ago.
The first of these contracts have now been re-awarded, albeit at significantly higher costs to Transport for London than the previous arrangements. A contract to operate route 28 (Wandsworth – Kensal Rise) with hybrid buses for five years from May 1, 2021 was awarded in July 2020 at a cost of £4.9m per year, which equated to £7.11 per mile operated. Last summer the operator, London United, exercised a break clause and the route was rendered. This January a new contract was awarded to Metroline, which takes over the route on May 4 (Look in on London last month) using diesel buses. The new arrangements will cost TfL £7.6m per year (£10.94 per mile) an increase of over 50%. Over the same period the consumer price index (CPI) rose by 19%.
In February, transport commissioner Andy Lord told the London Assembly Transport Committee tha…
