Force to be Reckoned With

That’s Stagecoach. We wondered after the collapse of the Cosmen-CVG consortium to buy National Express Group, whether this might actually prove an opportunity for Stagecoach. Previously, Stagecoach was only after the bits the consortium didn’t want.

We were right. Though only in its preliminaries, Stagecoach has declared an interest in NEG lock, stock and smoking rail franchise. What could emerge, therefore, is a new Stagecoach-dominated super-group with NEG having no more than a 40 per cent ownership.

What will the competition authorities make of *that*? Because of the way rail is structured, there are no real issues. Better yet, there’s little overlap regarding the highly prized Travel West Midlands bus operation.

True, there are Stagecoach operations to the south and east of the conurbation. You could argue that Stagecoach is in no different a position than Arriva to the north & west or or First to the south west.

But should the new group emerge, it will be an amalgam of both Stagecoach & NatEx, not a take-over. Add to this a rescue package that safeguards a vulnerable NEG and surely both would satisfy the OFT. Ultimately with the OFT, it’s difficult to judge.

NEG’s Travel Dundee is somewhat different. It’s surrounded by Stagecoach. The Traction Group bought neighbouring Strathtay in 1991 but when Traction passed to Stagecoach in December 2005, so did Strathtay.

Meanwhile, Stagecoach could be force to be reckoned with in Plymouth. Our recent survey indicates (and do look at reader comments) that just over two-thirds of respondents felt that Stagecoach’s take-over of Plymouth Citybus would pose the greater threat to First’s expanded Ugobus network than the other reported front runner, Go Ahead.

Whereas slightly under two-thirds felt that Go Ahead would offer the city and its residents a better service overall (that is, for every two people voting for Stagecoach, approximately three voted for Go Ahead).