Boom time for buses

Bus company National Express is enjoying a boom as people abandon their cars – and today said it would use "innovative pricing mechanisms" to combat soaring fuel prices.

The firm, which operates buses in the West Midlands and city-to-city services acr-oss the country, said record passenger numbers were due to the rising cost of motoring.

It revealed it was planning to use promotions and cost savings to help offset soaring oil prices and encourage more on to the buses.

National Express said it has struck a deal to buy the next 18 months worth of diesel at a discounted price.

The company expects "significant" year-on-year earnings growth and says it is saving £11 million a year by moving its head office from London to Birmingham, bringing 300 jobs to the region.

National Express West Midlands, formerly Travel West Midlands, runs 80 per cent of bus services in the reg-ion. Last year the firm made £205.6 million in pro-fit, up 11 per cent from 2006.

The head office moved to Birmingham's Hagley Road at the end of last year. It employs 42,000 worldwide.

Spokeswoman Joy Williams said: "Fuel is a very small percentage of our cost base and fare pricing is not based on the price of fuel."