Introduction

Go-Ahead is a leading supplier of support services to the transport industry including bus, rail and aviation. It employs over 24,000 people and is responsible for around 800 million journeys annually. Go-ahead's success is reflected in its increased turnover and increased operating profit.

Growth

Go-ahead's growth is closely linked to deregulation and privatisation. Deregulation allowed anyone to operate public transport such as bus services. Privatisation took ownership from government hands into private hands.

Once services were deregulated, Go-Ahead took over bus services in much of the North-East. In 1994, it became a public limited company. The company's operations have since spread to many areas in the South. The privatisation of rail services brought other opportunities and Go-Ahead is now the largest commuter train operator in London. Privatisation can bring benefits to customers, such as greater competition leading to more efficient services. Government also helps to keep transport efficient by setting standards for transport companies. Companies bid for franchises (the right to run certain services) and agree to run them in a particular way. Once in operation, poor performance can lead to fines. Poor performance will also work against franchises being renewed.

To be competitive, companies like Go-Ahead need to find out what customers want and then provide it. Go-Ahead found that key factors for customers were safety, reliability, convenience and affordability.

Types of growth

A business can either grow organically - ploughing back profit for expansion - or by taking over other businesses. Go-Ahead has expanded in both ways. Profits have allowed it to expand its bus and rail business. Recognising that the private car was its biggest competitor, Go-Ahead also bought Meteor Parking so that it can try to integrate car journeys with public transport.

Integrating transport

Integration is a key issue for the future. The government has published a 10-year plan to encourage integration. Go-Ahead supports this plan because it is encouraging people to use buses and other public transport and trying to discourage the use of the car. The government is trying to reduce congestion and pollution. Go-Ahead is the top public transport company in the Corporate Social Responsibility Index. Its buses run on clean fuel and have other anti-pollution measures fitted.

Decentralisation

Go-Ahead has many different transport operations. As well as buses, trains and car parking, it operates a range of aviation services such as cargo and baggage handling and check-in services. It manages and controls these operations using a decentralised model. This means that each operation within the group has the freedom to develop in its own way, in response to its own customers' needs. This is important because transport needs vary from place to place. Important policies that affect all parts of the business - such as environmental policies - are managed centrally.

Conclusion

Public transport is important to any modern economy. Go-Ahead has established itself in a strong position by recognising that public and private transport need to be integrated.