London Transport Bus Competitive
Tendering Results from 1984/5
Savings at Least 9B Pounds

HIGHLIGHTS              
Competitive tendering costs per vehicle kilometer down 38 percent from 1984/5, though up from 2000
Service levels up 74 percent from 1985/5          
Cost per passenger down 30 percent from1984/5          
Competitive tendering savings at least £8.5B from 1984/5 (assumes 1984/5£ rate at 2005£)  
  (Costs had been rising relative to inflation before 1984/5)      
                 
Year Vehicle Kilometers
(Millions)
Operating Cost
2005$
(Millions)
Cost per KM Change Passengers (Millions) Cost per Passenger Change Savings Compared to 1984/5 Unit Costs (Millions)
1984/85 268 £983 £3.67 0.0% 1,160 £0.85 0.0% £0
1985/86 263 £886 £3.37 -8.1% 1,152 £0.77 -9.2% £79
1986/87 260 £824 £3.17 -13.6% 1,164 £0.71 -16.4% £129
1987/88 263 £772 £2.94 -20.0% 1,207 £0.64 -24.5% £193
1988/89 274 £790 £2.88 -21.5% 1,211 £0.65 -23.0% £216
1989/90 282 £761 £2.69 -26.6% 1,188 £0.64 -24.4% £275
1990/91 300 £778 £2.59 -29.3% 1,178 £0.66 -22.0% £323
1991/92 316 £782 £2.47 -32.6% 1,149 £0.68 -19.6% £378
1992/93 321 £766 £2.39 -35.0% 1,129 £0.68 -19.9% £412
1993/94 326 £709 £2.18 -40.7% 1,117 £0.63 -25.0% £487
1994/95 322 £662 £2.06 -44.0% 1,167 £0.57 -33.1% £520
1995/96 329 £631 £1.92 -47.8% 1,205 £0.52 -38.2% £577
1996/97 332 £610 £1.84 -50.0% 1,242 £0.49 -42.1% £609
1997/98 342 £640 £1.87 -49.1% 1,277 £0.50 -40.9% £616
1998/99 344 £624 £1.81 -50.6% 1,267 £0.49 -41.9% £639
1999/00 354 £642 £1.81 -50.6% 1,296 £0.50 -41.5% £658
2000/01 364 £681 £1.87 -48.9% 1,363 £0.50 -41.0% £653
2001/02 373 £733 £1.97 -46.4% 1,430 £0.51 -39.5% £636
2002/03 406 £889 £2.19 -40.3% 1,530 £0.58 -31.4% £601
2003/04 473 £994 £2.20 -40.1% 1,692 £0.59 -30.6% £695
2004/05 466 £1,053 £2.26 -38.4% 1,777 £0.59 -30.0% £657
                 
Change 74.0% 7.2% -38.4%   53.2% -30.0%    
                 
Total               £9,352
                 
Data from Transport for London (formerly London Transport) and Department for Transport  
Includes depreciation              
In 2005£                

To facilitate the ideal of government as the servant of the people by identifying and implementing
strategies to achieve public purposes at a cost that is no higher than necessary.
(c) 1994-2006 www.publicpurpose.com --- Wendell Cox Consultancy (Demographia) --- Permission granted to use with attribution.