ARRIVA may have won the high court case, but FirstGroup has snapped up the prize with the surprise announcement that it has agreed terms with Chester city council to acquire Chester City Transport.
First says it will retain existing staff operating from the current depot in Station Road, Chester for the 84-vehicle operation. The deal is subject to the agreement of the secretary of state for transport and the executive boards of First and the city council.
“First is currently developing a series of exciting plans for vehicle investment, service improvements, and integration and co-ordination with its existing bus services in Chester,” says a spokesman for the group. “These will be progressively announced once the deal has been concluded.”
Chester city council leader Councillor Margaret Parker says: "Chester city council is pleased to confirm that it plans to sell Chester City Transport to First. We welcome this decision and we welcome what will be a better bus services for the people of Chester in the future."
On the same day that the deal was announced, the city council confirmed that it is seeking permission to appeal against the high court decision. The council says that it expects to incur litigation costs of up to £2 million following the High Court judgement. It adds that: “As part of this sale, the council is seeking to protect jobs as far as possible and secure the bus services currently provided for the people of Chester”.
www.bailii.org
Published Online:
20/06/07
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