29 October 2009

Arriva plc

Interim Management Statement

Since we reported Interim Results on 27 August 2009 the group has continued to
trade in line with management expectations.

Across the business we have taken, and continue to take, steps to manage our
cost base and respond to changing market conditions in ways that will benefit
Arriva into the future.

In CrossCountry, our business with the greatest sensitivity to passenger
revenue growth, consistent growth has resumed in recent weeks following
occasional weekly declines over the summer break period.

As anticipated, trading has been affected by a fuel cost increase, which will
amount to around £60 million in the full year, weighted towards the second half.

UK Bus

Revenue growth, adjusted for the number of trading days, was 4.9 per cent for
the division in the nine months ended 30 September, similar to the
like-for-like growth experienced in the first half of the year. Targeted
reductions have reduced commercially operated mileage by 3.3 per cent
year-on-year in the same period, improving yield per mile. Mileage in our
contracted London division grew by 3.0 per cent.

UK Trains

Passenger revenue growth for the 42 weeks ended 24 October was 1.3 per cent for
our CrossCountry franchise, although for the last six weeks it has been 3.8 per
cent. Passenger revenue growth was 6.7 per cent for Arriva Trains Wales, for
the same 42 week period, after allowing for timetable changes in December. Both
franchises have continued to provide excellent operational performance. Cost
reduction measures already put in place will contribute annualised savings of
approximately £15 million.

Mainland Europe

Revenue in our Mainland Europe division, expressed in euro, grew by 7.6 per
cent in the nine months ending 30 September. Excluding the effect of
acquisitions made in 2008, revenue growth was 3.5 per cent.

Though it is has a lower proportion of passenger revenue than the other
divisions, the effects of the economic downturn are being felt, particularly in
our commercial operations in Portugal.

Financial position

The group's financial position remains robust, with continuing strong cash
generation and significant undrawn bank facilities. The group's principal facility, 
a £615 million revolving credit facility, does not expire until mid 2012.

The group's forward fuel fixing for 2010 is substantially complete, with 15.9
per cent of the anticipated 520 million litre annual fuel requirement protected
by indexation arrangements, and 76.5 per cent forward purchased at an average
price of 36.2 pence per litre. Excluding the impact of fuel taxation and
delivery costs, this is expected to reduce fuel costs by around £30 million in
2010. For 2011, 36.5 per cent has been forward purchased at an average price of
31.6 pence per litre.

Outlook

In the short term we continue to focus on meeting the challenges posed by
economic conditions. Our careful targeting of cost reduction measures
anticipates the beneficial impact of fuel cost reductions from 2010 and, from
November 2011, protection from shortfalls in projected passenger revenue in the
CrossCountry franchise.

The business development environment remains positive with numerous tendering
opportunities under evaluation in the huge European public transport market.
With consistent evidence of the improved value for money available to
governments from the competitive tendering of urban and regional transport, the
market continues to present Arriva with opportunities for long-term growth. We
remain confident in the underlying strength and growth potential of the
business, and the prospects for the delivery of long-term value to shareholders.

The group is scheduled to issue its pre-close statement for the year ending 31
December 2009 on 17 December 2009.



Enquiries:


Arriva plc                                   0191 520 4000              
                                                                        
David Martin, chief executive                                           
                                                                        
Steve Lonsdale, group finance director                                  
                                                                        
Simon Craven, director - communications    

                             
                                                                        
Tulchan Communications                       020 7353 4200              
                                                                        
Stephen Malthouse  


                                                     

Notes to editors:

Arriva is one of the largest private sector providers of passenger transport in
Europe, employing more than 44,000 people (including share of associate
companies) and providing more than one billion passenger journeys every year.

Arriva provides transport services including buses, trains, commuter coaches
and water buses, and operates in 12 European countries: Czech Republic,
Denmark, Germany, Hungary, Italy, the Netherlands, Poland, Portugal, Slovakia,
Spain, Sweden and the UK.


Registered Number: 347103 England