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                

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strategies to achieve public purposes at a cost that is no higher than necessary.
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