BUS DEREGULATION, COMPETITION AND VEHICLE SIZE.

A STUDY OF FIVE ROUTES IN ABERDEEN SHOWS THAT THE 88-SEATER BUS IS TOO BIG. THE CONCLUSION INDICATED THAT, AFTER DEREGULATION, MINIBUSES ARE LIKELY TO COMPETE WITH BIG BUSES, SINCE THE EXTRA LABOUR COSTS OF PROVIDING AN EQUIVALENT SERVICE WITH SMALLER VEHICLES WOULD BE MORE THAN OFFSET BY THE CAPITAL AND INTEREST COST SAVINGS, TOGETHER WITH THE REVENUE GENERATED FROM THE HIGHER SPEEDS AND BETTER FREQUENCIES PROVIDED. PRESSURES OF FREE COMPETITION WOULD BRING ABOUT A MOVE TO SMALLER VEHICLES.