Stagecoach has confirmed the future of its inter-city coach businesses, Megabus and Falcon.
Both Megabus and Falcon are Stagecoach’s 100% owned inter-city coach operations.
In addition, the Perth-based group has a joint venture, Scottish Citylink, with international transport group, ComfortDelGro. This is responsible for the Scottish Citylink express coach network and Megabus branded services to, from and within Scotland.
Stagecoach and ComfortDelGro have now reached agreement for Stagecoach to sell the following businesses to Scottish Citylink:
- the Megabus retail platform and customer-service business, which sells and markets inter-city coach services in England and Wales.
- Falcon South-West, which retails tickets for the coach route between Plymouth and Bristol Airport.
In return, Stagecoach's share of the Citylink joint venture will increase from 35% to 37.5%.
Around 30 Stagecoach employees are expected to transfer to Scottish Citylink as part of the sale. There is no change to the operation of the inter-city coach services themselves.
Stagecoach chief executive Martin Griffiths said: "Inter-city coach has a positive future as a greener and better value alternative to the car and as the UK rail network continues to see rising fares and operational challenges.
"The agreement we have reached with ComfortDelGro will provide certainty for employees in these businesses, and ensure we can continue to benefit from future growth in the inter-city coach market through our increased share in the Scottish Citylink joint venture."
The agreement is subject to certain conditions, and completion of the transaction is expected by the middle of this month.
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