November 2 , 1979

MIDLAND Red is applying for a fares increase to try to offset losses caused by inflation.

The company says bus fares have to rise to bring in 12 per cent more revenue. It had been hoped to avoid a fares increase until next April.

"Midland Red no longer has any cash reserves, " said company secretary Mr Paul Merryweather.

"Any losses incurred by the company will have to be financed by loans and public sector borrowing will be strictly limited."

The increases, if granted, will do little to offset the company's ongoing losses.

The rise will put up to eight pence on the cost of a bus ride.

Redditicket number one will go up to £8 from £6.85. Redditicket number three increases from £11 to £12.75 and number four increases from £4.30 to £5.

Shoppers' specials to neighbouring towns will also be subject to price increases.