Darlington Bus War - Busways Response

Busways Response

In response to the inquiry report, Busways defended its actions in launching free services as being intended to prevent United gaining a monopoly in Darlington after the collapse of DTC, and only expected to run free buses until the traffic commissioner could bring forward its registrations. It denied poaching DTC’s drivers highlighting that the drivers had instigated contact with Busways first, when it became clear Busways would not be purchasing DTC. It contended it had always intended to enter the Darlington market through purchase of DTC if an appropriate price was agreed, in order to preserve goodwill and prevent a driver shortage of their already intended entrance. It also contended that Yorkshire Traction’s bid was unrealistic given the market, and contended that its price indicated that Yorkshire Traction anticipated being the only eventual operator in Darlington, thereby possibly acting as an agent for United. It contended that Yorkshire Traction's attempts to reduce its bid while still only aware of Stagecoach’s initial small registration, supported this belief.

Stagecoach management broadly agreed with the actions of Busways as being fair in the environment of deregulated bus services and within the confines of the rules governing registration of services and the instruction of compulsory tender sale of municipal bus companies. It did concede that possibly the free bus services had not been necessary and it could have achieved market entry by waiting for the traffic commissioner to advance its registrations once evidence of DTC's impending failure came to light.

Stagecoach saved approximately £100,000 in the cost of market entry in not purchasing DTC, even after 2 weeks of free operation and paying bonuses to DTC drivers for joining Busways. In November 1994, Stagecoach completed the purchase of Cleveland Transit, and in December the purchase of Hartlepool Transport. Stagecoach Darlington was later transferred to Transit under the umbrella of Stagecoach North East.