Bus Éireann 'facing insolvency'

Bus Éireann has warned the company is facing insolvency in the next 18 months.

Acting chief executive Ray Hernan has told staff that decisive actions need to be taken after forecasted losses for 2016 are now estimated at €8m.

He says change is required across the entire company to ensure it can compete in a competitive marketplace and initiatives to deliver savings will be announced shortly.

Mr Hernan also confirmed that the inter-city Expressway service will continue to be part of Bus Éireann.

In commenting on today’s media reports about Bus Éireann, the Minister for Transport, Tourism and Sport, Shane Ross TD, said: “I am very aware of the understandable concerns that are arising in rural Ireland following speculative comments about Bus Éireann."

The Minister said: “I am committed to the public transport system continuing to provide and develop services that are essential for local communities. That commitment is evidenced by the 11% increase secured for public transport services in 2017.

"Bus services are an integral part of our public transport system, particularly in rural Ireland."

Shane Ross, TD

Minister Ross noted that the National Transport Authority has provided clarification to address anxieties in rural Ireland that may have arisen unnecessarily as a result of some today’s media reports.

The Minister also noted that Bus Éireann will be engaging shortly with its unions in relation to the proposals it is finalising to address the financial losses in its commercial Expressway service, and to restore the company to a sustainable future.

KEYWORDS: Bus Éireann, travel


Most Read in Business

World Markets