The Government’s decision to axe half-price coach fares for the over-60s saw one million fewer pensioners travel with National Express last year, helping to send the transport firm’s annual pre-tax profit down 9% to £164.1 million.
One of Chancellor George Osborne’s austerity measures saw the Government withdraw a £16 million subsidy that gave older people and disabled passengers discounted fares.
That, the company’s chief executive Dean Finch said, “made 2012 one of the most difficult years in National Express Coach’s 40-year history”.
Operating profit at its coach business fell by £14 million to £20.6 million last year, and Britain’s biggest coach operator admitted: “We reduced some services that were made unprofitable by the concession removal.”
Elsewhere, National Express’ loss of the East Anglia rail franchise, which Dutch state-owned railway business Abellio took over a year ago, saw operating profit at its rail division crash 38% to £26.7 million.
The company now owns only one UK rail franchise, c2c into Fenchurch Street station.
National Express said it “wasted significant investment” in putting together franchise bids, running up a bill of £16.3 million before the Government put the process on hold in the wake of its bungled tendering of the West Coast.
