Bus Eireann chief: 'Expressway will stay' but company is facing insolvency in 18 months without changes
Acting CEO of Bus Éireann has moved to reassure staff and customers that the Expressway service will continue but said the company is facing insolvency in 18 months without major changes.
He told staff that fore-casted losses for 2016 are now estimated at €8m, and that "collectively we cannot allow this trend to continue".
He stated that Expressway will continue to be a part of Bus Éireann, and that the challenges to make it more competitive will only be resolved within the overall company structure, according to a statement issues by the company.
The pledge comes just a day after a consultant's report, revealed by the Irish Independent, told the company to axe the service, which links major towns and cities.
A report prepared by Grant Thornton said the service should be dropped unless the company can be moved onto sound commercial footing.
Today, Mr Hernan said that "change is required across the entire company to ensure it can compete in an increasingly competitive marketplace, which is more customer focused".
"Operational efficiencies and a sharp focus on cost drivers will form part of this, along with initiatives to deliver savings that will be announced shortly and activated without delay," the company said.
The "challenges" to make Expressway more competitive "will only be resolved within the overall company structure" Mr Hernan said.
Mr Hernan has recently been appointed to his current role following the departure of Martin Nolan who stepped down from his role, a year before he was due to depart this week.