Bus bosses have launched a Christmas price war by slashing fares to Eighties levels.

Brighton and Hove Bus Company has cut the price of an all-day Citysaver ticket from £3.20 to £2 on weekends throughout December.

The firm says it hopes to tempt Christmas shoppers onto the service from their cars - and admits if it doesn't generate an extra 150,000 ticket sales it will make a loss.

Roger French, the managing director of Brighton and Hove Bus Company, said the decision was not aimed at forcing rival firm Big Lemon out of business.

But the move could prove a devastating blow to the new transport business which only launched its city service in September and is already struggling to make a profit.

For every 10 existing Brighton and Hove Bus customers, six new ones will need to be found to meet the cost of the price cut.

Mr French said: "Sometimes you have to be radical.

"It's quite an audacious target but we hope we can persuade people. The aim is to get Christmas shoppers to try the bus and see how great it is as an alternative to driving into the city, finding a place to park and paying for car park charges.

"It is rather a high risk strategy because it is quite a captive time for us anyway but equally it's a good opportunity to encourage lots of new people to get the bus."

When the day ticket was introduced twenty years ago, the price was around £3.

The new fee, which will also apply throughout the week between Christmas and New Year, will be available in an area stretching from Seaford and Lewes in the east, throughout Brighton and Hove and to Shoreham and Steyning in the west.

It will be available directly from the driver. Children with a Bus ID who are travelling with an adult will be charged 20p.

The announcement was last night welcomed by passengers.

Peter Elvidge, the secretary of the Central Sussex branch of Bus Users UK, which represents the interests of passengers, said the decrease was 'fantastic'.

Mr Elvidge, from Wish Road, Hove, said: "It will greatly help people normally regard bus fares as too expensive, particularly families travelling together.

"It is especially useful with the roadworks in the city centre.

"We always welcome lower fares but you have to be realistic. The bus company has to cover its costs."

Geoffrey Theobald, the chairman of Brighton and Hove City Council's environment committee, said the price drop would mean a greener Christmas for the city.

He said: "This is a bold move by the bus company and very much to be welcomed. The company has already done well in achieving above average bus use and I hope this move improves things further."

The festive price drop brings the firm's charges in line with those charged by rival bus firm Big Lemon.

Passengers travelling on the firm's bright yellow buses pay £2 for an all day pass throughout the week.

Big Lemon managing director Tom Druitt said that while the price cut might affect his trade he welcomed the move.

He said: "Part of the reason we wanted to go into business in the first place was to encourage a bit of competition and hopefully see a reduction in fares so we think it's great that this is happening.

"It's fantastic news and it would be great if they kept the fares low."

Mr Druitt is holding a public consultation and will review the future of the firm, which is primarily targeted at university students, at the end of the month.

As reported in The Argus earlier this month, the company is struggling to break even because not enough customers are using the sole 42 service which runs between Falmer and Brighton Station.

Passenger numbers need to increase by 20 per cent to make the service financially viable.

At the beginning of November the timetable was shifted back by 15 minutes and the limited stop service was scrapped.

Mr Druitt has said he is prepared to make more changes once the feedback from customers has been assessed.

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