Bus service risk management

Meeting: 
MQT on 2009-02-25
Session date: 
February 25, 2009
Reference: 
2009/0482
Question By: 
Valerie Shawcross
Organisation: 
Labour Group
Asked Of: 
The Mayor

Question

What plans does TfL have in place to ensure that bus services can be maintained should any of London's bus companies go into administration?

Answer

Answer for Bus service risk management

Answer for Bus service risk management

Answered By: 
The Mayor

TfL has a comprehensive programme of risk management for all of its activities. This includes continually monitoring key suppliers, including bus companies financial performance and assessing their viability as part of the ongoing tender evaluation process.

As part of the bus contracting arrangements, guarantees are obtained from the parent company under which they guarantee financial and operational performance for the duration of the contracts. The obligations on the parent are not discharged by the operator going into administration.

In the event of a company going into administration, and the support of a parent company was no longer available, TfL would work with the administrator, and where appropriate other operators, to ensure continued performance of the services to passengers.