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Go-Ahead chief executive Keith Ludeman
Boost: Better driving is helping profits, says Go-Ahead chief executive Keith Ludeman

Go-Ahead's greener bus drivers help boost profits

Robert Lea, Evening Standard
5 Sep 2008


League tables of its most aggressive and fuel-burning drivers are helping bus and trains giant Go-Ahead keep a lid on spiralling energy costs and further boost profits from the renaissance in public transport.

Go-Ahead, responsible for a fifth of London bus journeys and the country's largest train operator, today thrashed already upbeat City forecasts by producing record pre-tax profits for the year to the end of June, up 19% at £131 million.

Better driving is helping, said chief executive Keith Ludeman.

Though fuel costs are taxpayersubsidised for public transport, they remain a significant drain for the likes of Go-Ahead. "We have been installing black box technology in our cabs so we can track of how well they are being driven," said Ludeman."Our drivers are being trained to make sure they drive more defensively, that they do not brake or accelerate so harshly."

For drivers, "there are incentives on offer. There are league tables".

Go-Ahead's bus profits were 18% higher on the back of passenger growth of 4% to 5% in the capital and 2% to 3% elsewhere, and helped by more efficient fuel consumption.

On the railways, Go-Ahead is benefiting from a golden age of soaring usage, with profits up 17%.

Southern Railways' saw passenger numbers grow 6.7%, with revenue up 13.2%. Southeastern passenger numbers grew 6.4%, with revenue 13% better. Its new franchise London Midland logged up to 9% growth.

"Can we sustain this sort of growth? Those levels ... have continued through this summer but it's anyone's guess what the effect of job losses or less travelling into London will be," said Ludeman.

The group's third leg, aviation services at airports, returned to profit at the operating level, though that ignores £7 million of restructuring costs, including 300 redundancies at Gatwick Airport.

The dividend is being lifted nearly 16%, or 11p, to 81p.

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