How can Nqy now apply for a PSO, as one of the criteria is that you have exhausted all other options and no operators will take it on, so how can the council put out in their statement that they are still in discussions with other operators to take over the route without a PSO, have they not shot themselves in the foot and that the dft will now know this!!
Point 1 is that were the council to put out a statement, to the effect, that there is no hope of any other operator taking over the route etc. etc. etc. then the punters would see no alternative but to vote with their feet and start planning alternative means of transport.
Of course the council don't want that to happen and, so to speak, "It ain't over until the fat lady sings" so they're putting out statement(s) to the effect "Bear with us, we're working on it" and the NQY faithful should be waiting for more news.
On the other hand, of course, it could be that prospective operator(s) are making demand(s) for some form of financial incentive to operate the route thus perhaps why the PSO application!