Dublin Bus in trouble over oil prices

shltter

Dublin Bus like all transport companies is not immune to the sharp increase in oil prices

It expects an operating loss of 16 million euro this year rising to 38 million next year
The company had partly protected itself by hedging its oil prices at $70 a barrel but that expires in February 2009 when it will have to pay the full market cost what ever that is then

Matters have not been helped by a 6.4 million euro cut in the government subvention to the company.

The company has announced an immediate stop on all recruitment and are meeting with the trade unions to discuss cost savings in the next few weeks.

Expect service reductions etc in the near future if matters do not improve particularly on the oil price front

orbital83

Matters have not been helped by a 6.4 million euro cut in the government subvention to the company.

Meanwhile, Gormless and Ryan keep banging on about carbon taxes and the evilness of people who don't use public transport.

What a wonderful little country we live in.

Tipsy Mac

It's not a great service as it is, with less funding I can only imagine how rubbish it will get.

Trampas

I thought DB does not use the standard diesel but the industrial diesel or whatever it causes but if the government want to cut the subsidy then if your service is suffering from numbers then I expect these routes to go which in turn will lead to my cars on the road.

Slight off topic. They need to sort out the signal between Connolly and Tara to let more trains through and somewhere to park them.

Victor

Where is this from?

shltter wrote: »

Dublin Bus like all transport companies is not immune to the sharp increase in oil prices

It expects an operating loss of 16 million euro this year rising to 38 million next year
The company had partly protected itself by hedging its oil prices at $70 a barrel but that expires in February 2009 when it will have to pay the full market cost what ever that is then

Matters have not been helped by a 6.4 million euro cut in the government subvention to the company.

The company has announced an immediate stop on all recruitment and are meeting with the trade unions to discuss cost savings in the next few weeks.

Expect service reductions etc in the near future if matters do not improve particularly on the oil price front

KC61

Victor wrote: »

Where is this from?

I would imagine through management/union contact?

SickCert

A letter from Managers to Unions passed to Drivers.

markpb

RTE followed up on this today.

linky

Dublin Bus could reportedly be set to raise its fares due to a massive increase in its fuel bills.

Reports this morning say the company has warned that its fuel bill for next year will be €37m, compared to €26m this year and €19.6m last year.

It will now reportedly have to decide whether to raise fares to meet the rising cost or seek an increase in the subvention it receives from the Government.

The company says it is already looking at new measures to reduce fuel consumption and curb CO2 emissions.

Trampas

markpb wrote: »

RTE followed up on this today.

linky

got to love that link.

pic of a bus eireann bus instead of a dublin bus

Traffic

If DB have to increase fares they should increase cash fares only and leave pre-pay tickets as is

darkman2

The price of oil is falling - it is now between $118 and $119 a barrel. Down from $145 a barrel and is continuing to fall. No excuse for Dublin Bus.

Traffic

DB should raise the price of cash fares anyways in order to get people to switch to pre-pay

paulm17781

darkman2 wrote: »

The price of oil is falling - it is now between $118 and $119 a barrel. Down from $145 a barrel and is continuing to fall. No excuse for Dublin Bus.

It's still more than they've hedged for and I would think it will go up again. I think they expect €123 to be the long term cost. That is still €53 a barrel more than they've budgeted for.

markpb

Traffic wrote: »

DB should raise the price of cash fares anyways in order to get people to switch to pre-pay

Yep absolutely but they have no control over cash fares, only pre-paid. Our friends in DoT control the cash fares.

D'Peoples Voice

Trampas wrote: »

I thought DB does not use the standard diesel but the industrial diesel or whatever it causes but if the government want to cut the subsidy then if your service is suffering from numbers then I expect these routes to go which in turn will lead to my cars on the road.

Slight off topic. They need to sort out the signal between Connolly and Tara to let more trains through and somewhere to park them.

biodiesel?
or at least some of them do!