COUNCIL contracts and passenger demand have helped a North-East bus operator navigate past London roadwork woes.

The Go-Ahead Group says local authority agreements across its regional routes have pushed revenues higher.

The business, which runs buses under the Go North East brand and has a base in Newcastle, said the successes have offset issues in the capital, where trips have been delayed by road repairs.

Bosses say the hold-ups mean the firm has lost revenue from Quality Incentive Contracts, which aim to spur operators into providing better services through bonus and contract incentives.

However, David Brown, chief executive, said the company’s regional bus revenues were 2.5 per cent better off than a year ago in the third quarter to April 20, adding fresh data shows it is keeping passengers happy.

He said: “We continue to make progress in our bus division and our locally-run companies work in partnership with local authorities and are focused on the needs of the communities they serve.

“We are proud of our high levels of customer satisfaction, which, at 89 per cent, remain sector-leading.

“Mileage and revenue growth in London have been consistent with expectations (and) contract gains, variations and rail replacement work (have) helped offset reduced Quality Incentive Contract revenue, which continues to be adversely affected by congestion resulting from roadworks.”

Mr Brown also confirmed Go-Ahead’s £230m expansion into Singapore was moving closer.

The business, which runs The Waggonway, taking passengers between Chester-le-Street, Beamish, Gateshead and Newcastle, revealed its Asian adventure in November last year, saying the five-year contract will start in September, cover 26 trips across the east of the country and employ nearly 900 people.

He added: “Go-Ahead Singapore will begin operations in the third quarter and has made good progress in mobilising the business.”

Mr Brown also confirmed Go-Ahead’s rail division, which includes the London Midland and Southeastern franchises, was running well.

He said London Midland, which connects the capital with the Midlands and North-West, was the strongest performer, with passenger revenue up 9.5 per cent.

Go-Ahead’s North-East bus services also include the Wear Tees Xpress, which carries people between Sunderland and Middlesbrough, and the Prince Bishops route, which links Durham City, Sunderland and South Shields.