Post by Tangy on Sept 23, 2005 9:02:32 GMT
After months of disagreements between the two companies over competition issues, it seems Stagecoach and Scottish Citylink have finally become friends again!
On 12 September 2005, Stagecoach acquired 35% of the share capital of Scottish Citylink Limited ("Citylink") in return for transferring certain rights to the Motorvator and megabus.com operations in Scotland. ComfortDelGro owns the remaining 65% of Citylink's share capital.
The new joint venture will operate services under the megabus.com and Scottish Citylink brands, and will be the leading provider of express coach services in Scotland. The joint venture is expected to have annual revenues of approximately £18 million.
Megabus.com services outside of Scotland will not form part of the joint venture, except for cross-border services between Scotland and England.
Brian Souter, Stagecoach Group Chief Executive, commented: "Megabus.com and Scottish Citylink are two powerful brands in Scotland, which have built up a loyal base of customers in different inter-city travel markets. This new joint venture will allow us to develop the quality of our products and offer an even better range of excellent value travel options for our customers.
"We remain committed to offering passengers a wide choice of services and fares to suit their individual needs. We believe the new venturewill make our collective operations more efficient, putting us in an excellent position to attract more people away from their cars and onto our inter-city services."
ComfortDelGro Managing Director and Group CEO, Mr Kua Hong Pak, said: "We are pleased to be entering into this agreement with Stagecoach. By working together and leveraging on our two strong brands we will be able to operate more efficiently, improve the quality of our services and focus our efforts on jointly growing our business."
From a message posted on the Megabus message board
On 12 September 2005, Stagecoach acquired 35% of the share capital of Scottish Citylink Limited ("Citylink") in return for transferring certain rights to the Motorvator and megabus.com operations in Scotland. ComfortDelGro owns the remaining 65% of Citylink's share capital.
The new joint venture will operate services under the megabus.com and Scottish Citylink brands, and will be the leading provider of express coach services in Scotland. The joint venture is expected to have annual revenues of approximately £18 million.
Megabus.com services outside of Scotland will not form part of the joint venture, except for cross-border services between Scotland and England.
Brian Souter, Stagecoach Group Chief Executive, commented: "Megabus.com and Scottish Citylink are two powerful brands in Scotland, which have built up a loyal base of customers in different inter-city travel markets. This new joint venture will allow us to develop the quality of our products and offer an even better range of excellent value travel options for our customers.
"We remain committed to offering passengers a wide choice of services and fares to suit their individual needs. We believe the new venturewill make our collective operations more efficient, putting us in an excellent position to attract more people away from their cars and onto our inter-city services."
ComfortDelGro Managing Director and Group CEO, Mr Kua Hong Pak, said: "We are pleased to be entering into this agreement with Stagecoach. By working together and leveraging on our two strong brands we will be able to operate more efficiently, improve the quality of our services and focus our efforts on jointly growing our business."
From a message posted on the Megabus message board