Hover plan Take a trip Fast-tracking Flying start ventures down record for airport Forth memory lane breakers service The newspaper of Stagecoach Group Issue 63 Summer 06 London bus sold off in £264m deal Move will allow further innovation and growth in provincial services by Steven Stewart tagecoach Group has agreed a £263.6m deal to sell its bus operations have been a highly London bus operations to focus on growing its provincial successful part of Stagecoach’s S UK Bus division since 1994. services in the UK. “We were approached about the possible Australia-based Macquarie Bank dependent on the net assets of sale of the business and, after assessing Limited is buying the business, which Stagecoach London at completion. Macquarie’s offer and the prospects Stagecoach has operated since 1994. As part of the deal, Stagecoach for the London bus operations, we Stagecoach has a 16% share of the bus London will establish a new defined concluded that the disposal was in the market in London. benefit pension scheme for its best interests of our shareholders. It is expected the sale, which is employees. “The sale of our London business subject to the approval of Transport Stagecoach will initially use the will allow us to build on our successful for London (TfL), will be completed in proceeds from the deal to reduce the growth strategy outside London, where around three months. Group’s net debt. The company has also we have demonstrated our strength in Stagecoach London operates 1300 confirmed it will conduct a review in delivering innovation, investment, and buses and employs around 4300 staff, the next six months to ensure that the strong marketing. providing bus services under contract Group is operating with an optimum “We will continue to look for further to TfL. capital structure. organic growth and bolt-on acquisition Total proceeds for the sale are Brian Souter, Stagecoach Group opportunities in our UK and North £263.6m in cash, subject to adjustments Chief Executive, said: “The London American bus businesses and additions to our rail portfolio.” Stagecoach has completed the acquisition of significant bus operations Non-executive director joins Board in Merseyside, Yorkshire, Lincolnshire Sir George Mathewson has joined Stagecoach Group’s Board and Tayside within the past year. The as a Non-Executive Director. Group believes the UK bus market Chairman of The Royal Bank of Scotland Group plc outside London has scope for further until his retirement in April, Sir George (66) is currently an growth in an environment where advisor to the Royal Bank and also a director of the Scottish Stagecoach can capitalise on its industry Investment Trust plc. leadership, entrepreneurial flair and Commenting on the appointment, Robert Speirs, Chairman innovation. said: “We are delighted that Sir George has joined the Board. Stagecoach currently operates more “He brings a formidable range of skills to Stagecoach than 8000 buses and employs around Group, including substantial experience of working with 20,000 people at its UK Bus division, Sir George Mathewson. major UK-listed companies.” which includes 20 regional operating A capital deal: The sell-off of Stagecoach's London bus operations will companies. allow the company to sharpen its focus on growth outwith the city. Car and train users By tyre and track switch to megabUS Megabus.com USA – the recently- is just the ticket launched budget coach service offering fares from just $1 – is winning over pas- sengers from cars and trains, according to new research. New deal on bus and trams opens up Sheffield Passengers can travel on daily non- stop express coach services between Chicago and eight other Midwest cities. y bus, by tram, buy just one fares. These changes will help restore local The network covers Cincinnati, Cleveland, ticket – that’s the simple people’s confidence in the city’s public Columbus, Detroit, Indianapolis, B transport network. Milwaukee, Minneapolis and St. Louis. but clever slogan behind a new “Passengers will now enjoy cheaper Research by Stagecoach Group integrated service in Sheffield. prices, new routes and more frequent has found that 45% of megabus.com Launched in May, Stagecoach’s bus and services. With Stagecoach buses and passengers previously travelled by car and tram network is delivering cheaper fares and Sheffield Supertram, we are able to offer 24% are former train users. better services to people in the city. a comprehensive, value-for-money and A further 17% used to travel with The company already operated integrated public transport network for another bus service, while 13% were Sheffield’s Supertram service but the people in the city. This is just the start of former airline passengers. innovative integrated plan now offers a our vision for better services in Sheffield The findings were included in a combined bus and tram network covering and we will be looking to make further survey of more than 1600 megabus.com most major routes to and from the city improvements in the future.” passengers in the United States, following centre. its launch earlier this year. It’s a major boost to locals who rely on Sheffield facts The new research also found that: public transport after suffering four bus fare • megabus.com is popular with rises in the last 12 months by the dominant • Stagecoach operates a fleet of more than women, who account for 59% of city bus operator, First. 100 buses from depots at Ecclesfield in customers The reliable, value-for-money the north-east corner of the city and • 94% of all passengers were Stagecoach network offers weekly tickets Holbrook in the south-east satisfied or very satisfied with the nearly 40% cheaper than prices charged by This is a job for super ticket: The official launch of Sheffield's new, integrated service. service First, with Stagecoach passengers travelling • Sheffield Supertram is Britain’s first • 97% of customers would travel on day tickets also saving around 20%. seven corridors into the city centre during are being rebranded as Stagecoach Sheffield state-of-the-art tramway, which runs 25 with megabus.com again Stagecoach passengers have the added the week. with a new fresh livery. trams on three routes across the city • 96% believed megabus.com bonus of their tickets also being valid on the The improvements follow the acquisition Brian Souter, Stagecoach Group offered value for money fares company’s trams in Sheffield. of Traction Group, which includes Chief Executive, said: “For too long bus • First has more than 80% of the bus • most people (40%) used megabus. A ‘turn-up-and-go’ package of services Yorkshire Terrier services, by Stagecoach passengers in Sheffield have had to put market in Sheffield. com for social trips. has buses running every 10 minutes on last December. Vehicles on these services up with poor services and rocketing bus Brian Souter, Stagecoach Group Chief Executive, said: “These are impressive findings. As well as helping to cut congestion on the roads, megabus. com is already winning passengers from Watching out for passengers… trains and airlines. “We are delighted with the response Security has taken a giant leap forward with end of February 2007. to the safety and security of passengers and down offenders.” of passengers to the high-quality of Stagecoach signing the UK’s largest single As well as monitoring the buses our drivers. Andrew Prince, Managing Director of service and low-cost fares. Women, in order for CCTV in buses. internally, the systems feature external He added: “Buses are the country’s most LOOK CCTV, said: “We have enjoyed particular, are responding to the safe The £1.2m deal, with LOOK CCTV, will facing cameras to check the movement of popular form of public transport and crime a long and productive relationship with and comfortable travelling environment ensure all new buses ordered by Stagecoach traffic and pedestrians as part of an accident on buses is extremely low. However, even Stagecoach over a number of years. Their on board. in the coming year will be fitted with state- prevention campaign. the fear of crime can act as a deterrent to decision to award us this largest ever “We believe there is significant of-the-art digital CCTV systems. Managing Director of Stagecoach UK travel. CCTV has a proven track record of contract for CCTV is recognition of our potential to attract more people in the And that includes the 460 new vehicles Bus Les Warneford said the investment was making passengers feel safe, cutting crime ability to deliver cutting-edge systems and United States to the benefits of low-cost that will be bought between now and the part of the company’s ongoing commitment and anti-social behaviour and helping track support services.” inter-city coach travel.” The North American launch followed the UK success of megabus.com, which Contacts carries around two million passengers a year on a network of inter-city services The Editor, On Stage, Stagecoach Group, Stagecoach South Helen Martin 01243 536161 covering 40 locations nationwide. 10 Dunkeld Road, Perth PH1 5TW. Stagecoach South West Mark Whittle 01392 889747 Since its launch in the States, more Tel: +44 (0)1738 442111, Fax: +44 (0)1738 580407 National Transport Tokens Sajda Khan 01254 680180 than 575,000 people have visited the US secure e-commerce site, which provides www.stagecoachgroup.com full information on arrival and departure If you have a story for On Stage, please get in touch with your UK Rail times. Passengers can quickly book their local contact below: South West Trains Lisa Davies 0207 620 5892 travel and purchase tickets from the Stagecoach Group Steven Stewart 01738 642040 Island Line Stephen Wade 01983 812591 comfort of their home, office or wireless Stagecoach Supertram Julia Shaw 0114 2759888 handheld device.