Consultants say closing down Expressway services may be only option to deal with Bus Eireann's financial crisis
Consultants have warned that closing down Bus Éireann’s Expressway network of intercity services may ultimately be the only viable option for dealing with the company’s financial situation.
At total of 516 staff could lose their jobs if Expressway, which is the commercial arm of the State-owned Bus Éireann, was closed down, while up to 10 existing depots would face closure.
According to the Irish Times, a confidential draft report by the consultants Grant Thornton maintains that there are “limited strategic reasons” for the State to own a commercial bus business.
The consultants warn that Bus Éireann would face insolvency within two years if nothing is done to address losses. The company has faced significant losses in recent times , particularly as a result of growing competition from private bus operators. Grant Thornton was commissioned several months ago to review survival plan options drawn up by company management.
Management at Bus Éireann are due to hold talks with unions in the weeks ahead on restructuring plans.