NEARLY 90 jobs face the axe after bus giant First announced it planned to end operations in the east of Scotland.
First Scotland East confirmed that 88 posts were "at risk" as a result of plans close its depots in North Berwick and Musselburgh and cease running bus services in East Lothian from August 14 this year.
READ MORE: SPT warns of market failure as report highlights 'significant and worrying' fall in bus passengers
The Traffic Commissioner and East Lothian Council have been notified.
Paul McGowan, managing director of First Scotland East, said: “I’m disappointed that we’re proposing to withdraw from Musselburgh and North Berwick.
"We will engage with the local authority on the future of bus services. However, given there are other bus operators that operate in and around the area, I’m confident if we decide to go ahead with these proposals the majority of our customers won’t be left without a service.”
In a statement, the company said its operations in the region had "not been viable for a number of years" as it struggled to attract enough customers in an "increasingly competitive market".
It had been compelled to maintain a minimum level of service and was banned from raising fares above a certain threshold as a result of undertakings agreed some 14 years ago following an investigation by the Monopolies and Mergers Commission.
However, following the recent lifting of the restrictions by the Competition and Markets Authority (CMA), First Scotland East said it wanted to put the business "on a sound footing for the future" and "focus resources in areas where customer demand and satisfaction is growing".
READ MORE: SPT warns of market failure as report highlights 'significant and worrying' fall in bus passengers
Redundancy consultations are underway with the trade unions.
Mr McGowan said: “I am sorry that we are having to discuss the proposal to discontinue services and consider the possibility of redundancies.
“I must stress our proposals do not, in any way, reflect the commitment and quality of our employees in the area. I cannot speak highly enough of their professionalism and dedication. We will be doing everything we can to assist those affected.
“Unfortunately, we’ve incurred losses in East Lothian for years. Should the proposal be implemented this will allow us to concentrate our investment in West Lothian, the Borders and the Central Belt, improving our services for customers and growing our operations in those areas, helping protect jobs in the long term.”
READ MORE: SPT warns of market failure as report highlights 'significant and worrying' fall in bus passengers
First Scotland East is owned by Aberdeen-based, First Group, and headquartered in Larbert, near Falkirk. It employs more than 1,000 staff and operates 390 buses carrying more than 22 million passengers a year.
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