TRANSPORT giant FirstGroup is to drive out of East Lothian, axing services and closing depots in a move which puts almost 90 jobs under threat.

First Scotland East, a subsidiary of the Aberdeen-based operator, yesterday announced plans to pull out of East Lothian from mid-August. The move will see the closure of depots in North Berwick and Musselburgh, with a consultation under way with 88 staff.

In a statement, the firm said the operations had “not been viable for a number of years” despite efforts to reverse the decline and attract more passengers in an “increasingly competitive market”.

First was required to run the services under agreements set 14 years ago following an investigation by the Monopolies and Mergers Commission.

However, First Scotland East was recently released from these undertakings by the Competitions and Markets Authority and now plans to “focus resources in areas where customer demand and satisfaction is growing”.

Paul McGowan, managing director of First Scotland East, said he was “disappointed” and pledged to work with the local authority on the future of transport provision.

However, he added: “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.”

On potential job losses, McGowan added: “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 do 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 Central Belt, improving our services for customers and growing our operations in those areas, helping protect jobs in the long term.”

First Scotland East carries more than 22 million passengers a year on 390 buses running between all major towns and cities in the area, including services between Central Scotland and Glasgow.

The planned cuts will slice about one fifth out of First Scotland East operation.

In 2014 the company scrapped services between Queensferry and Edinburgh just days before the launch of a competing service by Stagecoach East Scotland.

The decision was said to have been prompted by “high operating costs and increasing competition”.