Stagecoach to expand Megabus brand in Europe

Δημοσιεύθηκε: 29 Οκτωβρίου 2014 - 18:18

Stagecoach is set to spend millions in start-up costs to expand its Megabus brand in Europe as the UK-listed bus and rail operator looks to take advantage of the popularity of cheap intercity coach travel.

The FTSE 250 company set up its first base in Belgium last month, which it will use to launch routes in the Benelux region and further into Europe.

The group has also called upon the French authorities to press ahead with liberalising its coach market, paving the way for it to operate in France.

"We have been pleased with the progress of our megabus.com intercity coach operations in continental Europe and we are now planning to extend the network further," the group said as it posted a trading update. It said it would spend "a few million pounds" in start-up costs for its financial year to April 30 2015 and about £20m for buying new vehicles.

Stagecoach began services from the UK to Europe in 2012, and now serves destinations such as Paris, Amsterdam and Barcelona. The group has also been rolling out its Megabus model in the US.

In the UK, the group criticised the decision last week from the local authority in the North East to move forward with a plan to bring the running of buses under its control. Stagecoach is one of the region's biggest bus operators and the plan represents a threat to its margins. It labelled the plan "flawed" and said it was reviewing its legal options.

In London, the only place in the UK where buses are under local authority control, the group saw an increase in revenue of 9.4 per cent derived from the win of nine new bus contracts.

Performance in the group's rail division for the first half of its financial year was as expected, it said.

Stagecoach is looking to the next big franchising decision, expected in November, when the winning bid for the East Coast main line between London and Scotland will be announced. Its 90 per cent joint venture with Virgin Trains is on the shortlist, as well as rival transport company FirstGroup and a joint bid from Eurostar and French operator Keolis.

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