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Darlington Bus War

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The Darlington Bus War was a series of events between 1986 and 1995 in the UK bus industry in the town of Darlington , northern England, culminating in the wholesale entry of Stagecoach Group onto the Darlington bus scene, and the collapse of Darlington Corporation Transport.

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62-766: In November 1994, the events in Darlington and in other areas prompted the Director General of Fair Trading to request the Monopolies & Mergers Commission to investigate the supply of bus services in the North East. As a result of bus deregulation in 1986, the National Bus Company (NBC) as the largest regional bus operator was split into pieces and sold off, and municipal bus companies were being put into stand-alone companies, with many being privatised. In March 1986

124-581: A Restrictive Practices Court and a registrar of restrictive trading agreements. The commission was again reconstituted, and its powers extended, by the Monopolies and Mergers Act 1965 . In 1969 oversight of the Commission passed to the Department of Employment and Productivity , and in 1970 to the Department of Trade and Industry . Under the Fair Trading Act 1973 the Commission became, from 1 November 1973,

186-466: A co-ordinating role, tendering bus services and funding concessionary fares and infrastructure such as bus stations. West Midlands Travel faced its first major deregulation challenge in March 1987 when London Regional Transport (LRT) pulled out of its 'London Liner' London to Birmingham express coach service. Operated jointly by both LRT's London Coaches subsidiary and WMT's Central Coachways subsidiary using

248-499: A company to sell off part of its business or take other steps to improve competition. The Enterprise Act 2002 enabled the OFT (and the sector regulators) to investigate markets and, if they were concerned that there may be competition problems, to refer those markets to the CC for in-depth investigation. In market investigations the CC had to decide whether any feature or combination of features in

310-575: A competitor in the town, they were barred from the bid process on competition grounds. Accordingly, on 24 October 1994 DBC selected Yorkshire Traction as the preferred bidder. On learning of the successful bid by Yorkshire Traction, the drivers union of DTC made representations to Busways that Yorkshire Traction were not their preferred bidder, and the majority of drivers would probably be interested in joining Busways' new operation. Accordingly, with worries over recruitment and training now reduced, Busways registered all of DTC's commercial routes, and commenced

372-521: A fleet of MCW Metroliner coaches, following London Coaches' withdrawal, Central Coachways continued to run the service as its sole operator from the end of March. The company invested in a heavy rebranding campaign in 1988 that saw the introduction of a new silver, blue and red livery to the bus fleet, new uniforms, and the purchase of 150 new MCW Metrobus double-decker buses . After 18 months of deregulation, WMT announced in October 1988 that it had made

434-575: A fleet of over 1,600 buses and coaches from eight garages in Acocks Green , Birmingham Central ( Digbeth ), Perry Barr , Yardley Wood , Pensnett , Walsall , West Bromwich and Wolverhampton . Perry Barr is the newest location, having opened in December 2022. The site, housing infrastructure for charging a fleet of electric buses and a bus driving simulator as well as featuring 150 solar panels, environmentally-friendly heating systems and water recycling for

496-523: A grey and red colour scheme; some buses are given special colour schemes for select services such as the 8/X8, 9, 16, 50 and 82/87. Drivers on Platinum services are issued with suit-style uniforms. Deliveries of the first Platinum buses began in 2015, with 58 Alexander Dennis Enviro400 MMCs from a larger order of 171 buses delivered with Platinum branding. These were initially deployed on services 900 and 957, since renumbered X1 and X2, before being rolled out onto services 934, 935, 936, 997 and X51 later in

558-691: A low-floor Spectra, managed to bring their bus out into service a few hours ahead of TWM, making them the first low-floor double-decker operators in the United Kingdom. 20 more Spectras would later be delivered to TWM to upgrade West Midlands bus route 50 during 1998. Alternatively-fuelled buses were first introduced to the Travel West Midlands fleet in 1997, with 14 Alexander Ultra bodied Volvo B10Ls fuelled by compressed natural gas being launched on route 529, serving Walsall and Wolverhampton via Willenhall . These Ultras were supplied as part of

620-522: A market prevents, restricts or distorts competition, thus constituting an adverse effect on competition (AEC). Before finding out what percentage firms take up, the CC has to 'define the market'. This is when they have to find out which products are in which industries so they know what percentage to do. If the CC concluded that this was the case, it was required to seek to remedy the problems that it identified either by introducing remedies itself or by recommending action by others. Undertakings or orders are

682-436: 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

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744-904: A partnership supported by the Energy Saving Trust between TWM, Volvo Bus and British Gas , the latter of whom constructed CNG refuelling points at Walsall garage for the buses. In February 2020, National Express announced its intention to operate a completely zero-emission bus fleet by 2030, pledging it would not buy another diesel-powered bus and only purchase zero-emissions vehicles for its West Midlands, Coventry and Dundee operations from 2020 onwards. The company's first nine BYD Alexander Dennis Enviro400EV battery electric buses began operation on 5 July 2020, with 20 hydrogen fuel cell -powered Wright StreetDeck Hydroliner buses following in late 2021. By 2024, over 200 BYD Enviro400EVs had been ordered for delivery to National Express West Midlands. Further hydrogen-powered buses are set to enter

806-424: A profit of over £217 million (equivalent to £736,983,000 in 2023), retained 97% of its pre-deregulation bus network and had recorded a 5% drop in passengers compared to before deregulation; the latter, however, would increase to a drop of 10% by 1989, resulting in fare rises and cutbacks in its bus network. Despite pressure from the central government, including both a threat to be split under Section 61 of

868-765: A recruitment drive. Busways quickly recruited over 60% of DTC's drivers by 7 November. Amid concerns that DTC would not be able to fulfil its services due to driver shortage, and with concerns over United having a free hand in Darlington if DTC collapsed, Busways requested an advance on their registration date. This was refused. Busways exploited a loophole in the regulations, and began operating free buses on their Darlington network. Busways called in several vehicles from its other subsidiaries, and repainted several of its surplus Leyland Atlanteans into Stagecoach livery. In response to Busways initial route network, and on commencement of driver recruitment, Yorkshire Traction withdrew their bid for DTC on 2 November. DBC were unable to reach

930-630: A response from United with further registrations, later described as predatory and anti-competitive by the Competition Commission. By 1993, with 3 competing operators, concerns had been raised over 'over-bussing' and congestion in the town centre. By 1994 all three operators were making financial losses. Due to its financial state, DTC was put up for sale in July 1994. In response to the sale announcement, United registered additional services on DTC's routes. In early 1994 independent Busways had explored

992-553: A result of an appeal from a decision of one of the sector regulators. Under the Enterprise Act 2002 (the Enterprise Act), the OFT could review mergers to investigate whether there was a realistic prospect that they would lead to a substantial lessening of competition (SLC), unless it obtained undertakings from the merging parties to address its concerns or the market was of insufficient importance. To qualify for investigation by

1054-593: A sale with any other buyer, and Busways declined a new approach. With no other buyers, difficulty running their services due to driver shortage, and ongoing concern at the financial viability of DTC in the long term, DTC was placed into receivership on 9 November 1994, with all services withdrawn by 11 November. Due to DTC's collapse, Busways was then granted permission to start running revenue collecting services from 28 November. Your Bus ceased operations on 16 December, selling its vehicles to West Midlands Travel . This left just Busways and United operating in Darlington. On

1116-487: A small network in Darlington in September 1994, due to start in December, as a result of concerns over availability of drivers. Exclusive bids for DTC by Stagecoach had been previously declined. According to government rules, DBC were obliged to sell DTC by competitive tender. After initial enquiries, from 11 initial interested parties, 3 were short listed as preferred bidders for DTC on 14 October 1994: As United were already

1178-590: Is bus operator in the West Midlands of England. It is a subsidiary of Mobico Group (formerly National Express Group) and is the largest bus operator in the region, as well as one of the single largest in Britain. NXWM operates services in Birmingham , Dudley , Sandwell , Walsall , Wolverhampton and Solihull , as well as express services from Birmingham to areas such as Cofton Hackett , Bromsgrove , and formerly to

1240-706: The Legal Services Act 2007 . The CC had an appeal function following decisions by the Gas and Electricity Markets Authority to modify certain energy codes under the Energy Act 2004 and in relation to price control decisions by Ofcom , following a reference by the Competition Appeal Tribunal (CAT) under the Communications Act 2003 . West Midlands Travel National Express West Midlands (NXWM)

1302-593: The Metro's Line One extension as 'Metro's Little Sister'. Following the awarding of the 2022 Commonwealth Games to Birmingham in 2016, it was announced that the Sprint network would expand with theee cross-city bus routes linking Solihull, Sutton Coldfield and Walsall with Birmingham City Centre. These services are to be operated by National Express West Midlands; it was originally envisaged that this route would be operated by 24 Van Hool ExquiCity articulated buses in time for

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1364-642: The Office of Fair Trading . The Monopolies and Restrictive Practices Commission was set up on 1 January 1949, in response to the recommendations of several committees of inquiry into restrictive commercial activity. It was established under the Monopolies and Restrictive Practices (Inquiry and Control) Act 1948 . It was reconstituted as the Monopolies Commission on 31 October 1956 by the Restrictive Trade Practices Act 1955 , which also set up

1426-407: The CC. In relation to regulatory references, the CC's role was dictated by the relevant sector-specific legislation. Companies regulated under the gas, electricity, water and sewerage, postal services, railways or airports legislation generally had a formal instrument (a licence) setting out the terms of their operation. If a regulated company did not agree to a modification of its licence proposed by

1488-574: The Commonwealth Games, however it was later announced in 2019 that construction of infrastructure related to the Sprint articulated buses would be delayed until after the Commonwealth Games. Phase 1 of the Sprint network was completed in May 2022, with bus lanes and priority junctions being introduced on commuter corridors on the A34 and A45 roads . As of June 2024, National Express West Midlands operates

1550-978: The Mobico Group's bus operations. Launched in 2014 using a converted Mercedes-Benz O405N single-deck bus, this scheme was upgraded in 2024 with the conversion of an Alexander Dennis Enviro200 MMC for use as the group Health Bus; featuring two in-built consultation rooms and a waiting room, the bus is operated by a health coach and a health coordinator, providing physical health checks to employees for their body mass index , body and fat, blood pressure, cholesterol and blood glucose levels. NXWM previously operated five travel shops located in Dudley , Coventry Pool Meadow bus station , West Bromwich bus station , Birmingham, Corporation Street and Walsall bus station . All offices sold all types of Travelcards, National Express coach tickets and assist customers with information and route planning. The travel shop at Wolverhampton bus station

1612-573: The Monopolies and Mergers Commission, with wider powers to deal with references either from the Office of Fair Trading or from the Department of Trade and Industry. On 1 April 1999, as a result of the Competition Act 1998 , it became the Competition Commission. The Competition Commission (CC) was an independent public body which conducts in-depth inquiries into mergers, markets and the regulation of

1674-496: The NXWM fleet following funding from the Department for Transport . A total of 124 hydrogen buses are due to enter service by 2024, which will give Birmingham the largest hydrogen bus fleet in Europe. National Express West Midlands are responsible for the upkeep and maintenance of the Mobico Group's 'Health Bus', an employee benefit scheme free to use for all employees that travels across

1736-729: The National Express Group in April. In September 1996, WMT was rebranded to Travel West Midlands . This was followed in November 1997 with the sale of TWM's Central Coachways arm to the Flights Travel Group. In November 2002, Travel West Midlands' Coventry services were separated from the main TWM operation and rebranded to Travel Coventry . In February 2008, as part of a rebranding of all National Express subsidiaries, Travel West Midlands

1798-451: The OFT, a merger needed to meet all three of the following criteria: In exceptional cases where public interest issues are raised, the Secretary of State could also refer mergers to the CC. Where an inquiry was referred to the CC for in-depth investigation, the CC had wide-ranging powers to remedy any competition concerns, including preventing a merger from going ahead. It could also require

1860-510: The Platinum Fleet is no longer providing free Wi-Fi. The reasoning for this is that despite pulling in an average of 600,000 passengers daily, only 1% (~6000 a day) used the Wi-Fi provided. The Sprint cross-city bus rapid transit service was first announced in July 2014, initially taking the form of a single service linking Birmingham city centre and Quinton via Hagley Road , connecting with

1922-516: The Platinum brand. The Platinum range of buses is a premium brand which offers passengers extra legroom, high backed seats, next stop announcements (on supported services), free Wi-Fi and USB charging on a select series of routes in the West Midlands. The Platinum brand uses Alexander Dennis Enviro400 MMCs , Alexander Dennis Enviro400EVs and Wright StreetDeck Hydroliners , which are usually painted in

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1984-718: The Transport Act 1985 to force its sale and government funding for the Midland Metro tram project being lost if the company was not sold, West Midlands Travel remained in public ownership under the West Midlands Passenger Transport Authority. Plans for a management buyout through an Employee Share Ownership Plan (ESOP) were first submitted to the WMPTA in June 1989 by WMT's management and employees in response to

2046-537: The Whinbush areas initially) proved successful, so shortly afterwards United purchased more Mercedes, and some Dodge S56 , minibuses and hugely expanded the minibus network which resulted in a doubling of services across the whole town and intense competition with Darlington Transport. From 1988 to 1992 many requests and attempts were made to sell DTC, all coming to nothing. Your Bus , another operator set up by ex-United employees, entered into Darlington in May 1993, prompting

2108-513: 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

2170-508: The bus operations of Darlington Borough Council (DBC) were incorporated as the Darlington Transport Company Ltd (DTC), although not initially sold. In August 1986, NBC subsidiary United Automobile Services introduced a small number of new hail and ride town services in Darlington using Mercedes–Benz minibuses under the 'Roadranger' livery in competition with Darlington Transport. These services (covering Firth Moor and

2232-586: The city of Coventry (now operated by National Express Coventry ). In August 1986, prior to the deregulation of bus services , West Midlands Travel (WMT) was formed out the bus operations of the West Midlands Passenger Transport Executive . The PTE ceased to be a bus operator as a result of the Transport Act 1985 , but both the West Midlands Passenger Transport Authority and successor organisation Transport for West Midlands retain

2294-800: The corresponding name of the depot the bus was based from, forming combinations such as WM Buses Acocks Green, amid moves by senior management to use the West Midlands Travel name as a holding company ahead of a possible floatation of WMT on the London Stock Exchange . In March 1995, the National Express Group purchased West Midlands Travel from employee ownership for £85 million (equivalent to £592,467,000 in 2023), with over 5,000 employee shareholders of WMT receiving windfall gains averaging £30,000 (equivalent to £73,000 in 2023). Operations were subsequently merged into

2356-485: 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 . Yorkshire Traction eventually came under Stagecoach ownership. United Automobile Services eventually came under

2418-665: The delivery of 72 more Enviro400 MMCs, some of which would be delivered to National Express Coventry for the city's first Platinum services, and the West Midlands buses operating on routes connecting Stourbridge , Druids Heath and Chelmsley Wood with central Birmingham. National Express West Midlands' first zero-emissions Alexander Dennis Enviro400EV buses were built to Platinum specification, and entered service in July 2020 on route 6 from Birmingham to Solihull via Shirley . The fuel cell electric Wright StreetDeck Hydroliner FCEVs that followed entered service on route 51 from Birmingham to Walsall via Perry Barr. As of January 2024,

2480-505: The economy. The Competition Commission replaced the Monopolies and Mergers Commission on 1 April 1999. It was created by the Competition Act 1998 , although the majority of its powers were governed by the Enterprise Act 2002 . The Enterprise Act 2002 gave the Competition Commission wider powers and greater independence than the MMC had previously, so that it could make decisions on inquiries rather than giving recommendations to Government, and

2542-525: The examiners. West Midlands Travel also made a number of acquisitions during its employee ownership. In 1990, WMT partly owned minibus operator Merry Hill Motors, and that same year, WMT purchased a fleet of new Alexander bodied Scania N113 double-decker buses to compete with Your Bus of Alcester ; Your Bus would later be acquired by WMT in 1993. Retained as subsidiary companies of WMT, these operators were later rebranded to Travel Merry Hill and Travel Your Bus respectively before being absorbed into

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2604-548: The instigation of DBC, still concerned at over-bussing and congestion, both companies agreed to reduce service levels by March 1995. In the summary of the competition inquiry into the larger issues in bus services in the north east, concerning the collapse of DTC, the commission stated: It was the combination of Busways' actions in recruiting so many of DTC's drivers so quickly, registering services on all its routes and running free services which caused DTC's final collapse. We find these actions to be predatory, deplorable and against

2666-564: The introduction of bus franchising and further hydrogen buses on the NXWM network. Previously garages in Stourbridge , Dudley , Merry Hill (part of Travel Merry Hill), Harts Hill, Sutton Coldfield , Hockley , Cotteridge , Selly Oak , Wolverhampton (Cleveland Road), Washwood Heath and Quinton have been operated. The Dudley garage closed on 28 August 1993 to make way for the Dudley Southern By-Pass (which opened in 1999) and

2728-491: The main Travel West Midlands operation by 2001. A further competitor purchased by WMT in August 1993 was Metrowest Omnibus of Dudley, which was also retained as a separate subsidiary of WMT after founding director Keith Danks left the company a month prior. In April 1994, West Midlands Travel made its first out-of-area acquisition by purchasing former London Buses subsidiary Westlink from its employee owners, followed in October by

2790-569: The major regulated industries, ensuring healthy competition between companies in the UK for the benefit of companies, customers and the economy. All of the CC's inquiries were undertaken following a reference made by another authority, most often the Office of Fair Trading (OFT) (which referred merger and market inquiries), or one of the sector regulators (which could refer markets within their sectoral jurisdictions or make regulatory references in relation to price controls and other licence modifications) or as

2852-525: The original WMT headquarters located in a building on Summer Lane, Birmingham that was shared with Centro . Bordesley Green garage closed in 2022 following the sale of the land in and around the depot for redevelopment, resulting in the head office relocating to the National Express Group headquarters in Digbeth, and Walsall bus garage was sold to the West Midlands Combined Authority ahead of

2914-455: The ownership of Arriva . Stagecoach later sold its Darlington operation to Arriva, leaving Darlington bus services solely in the hands of Arriva apart from a very few council supported routes which were left to smaller operators. However, in 2023, after Arriva decided to axe the Number 12 Bus to Hurworth, Darlington Borough Council put the route out to commercial tender which Stagecoach won, marking

2976-510: The possibility of entering into the Darlington market, as a possible option for expansion. This was shelved as bids from major groups for the Busways company were considered. Busways were sold to Stagecoach Group in July 1994. After a meeting with Stagecoach executives, the decision was made to enter Darlington, either through a bid for DTC, or as a new operator. Accordingly, Busways as a subsidiary company set up Stagecoach Darlington , and registered

3038-459: The primary means by which remedies were given effect under the Enterprise Act 2002 and the Fair Trading Act 1973 . The OFT had the statutory duty to keep these undertakings or orders under review and if it considered that due to a change of circumstances a set of undertakings or an order should be varied or terminated, then the OFT referred it for consideration by the CC. Responsibility for deciding on variation or termination of undertakings lay with

3100-474: The public interest. It stated that while registration of routes and recruitment of competitors drivers was not against the spirit of deregulation, it commented that the scale of Busways actions were unprecedented, and were attributable to Busways considerable dominance in the region, and ability to absorb losses due to free services. In response to the inquiry report, Busways defended its actions in launching free services as being intended to prevent United gaining

3162-644: The purchase two Essex-based companies from the Lynton Group: County Bus & Coach , a bus operator formed from the split of London Country North East that consisted of over 240 vehicles, as well as Sampson Coaches. Westlink was sold by WMT to fellow former London Buses subsidiary London United a year later, while County Bus & Coach was later sold to the Cowie Group . West Midlands Travel underwent another rebrand during 1994. Buses had their West Midlands Travel fleetnames replaced with "WM Buses" and

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3224-489: The regulator, the regulator was required to refer the question to the CC. The CC then considered whether any matter referred to in the reference could be expected to operate against the public interest and, if so, whether it could be remedied by modifications to the licence. These references could involve the price control applied to the company. The CC also had roles under the Financial Services and Markets Act 2000 and

3286-433: The return of Stagecoach to the Darlington bus scene. Stagecoach chairman Brian Souter later went on record to say the negative impact of Stagecoach's actions had outweighed any financial gain it had made from operating in Darlington. Since the bus wars, bus use in Darlington has declined from over 10 million journeys a year (in 2001) to 6.6 million (in 2014). Competition Commission The Competition Commission

3348-603: The splitting threat, which were approved by the PTA and submitted to Minister of State for Transport Michael Portillo in early 1990; after a competing bid by Stagecoach Group owner Brian Souter to buy WMT for £85 million (equivalent to £230,493,000 in 2023) was rejected by ths PTA, the ESOP offer was finally approved in December 1991, with WMT sold to its management and employees for £70 million (equivalent to £189,818,000 in 2023). In November 1992, West Midlands Travel

3410-531: The three bus washes on site, replaces the 90-year-old original Perry Bar garage, which was deemed unsuitable for modernisation and housing charging infrastructure. Prior to the construction of the new Perry Barr garage, Bordesley Green garage was the newest location, having opened in 2005. Bordesley Green was also the headquarters for National Express West Midlands, which replaced a freehold office site in St Paul's Square that WMT moved to in 1994; this office replaced

3472-531: The year. The Platinum brand would be extended out into the Black Country in 2016 with the delivery of a further 96 Platinum Enviro400 MMCs resulting in Platinum buses being cascaded from Birmingham Central garage to Pensnett for the Merry Hill to Birmingham X10 service, and then would expand to Harborne in December 2017 with the delivery of 38 new buses. The Platinum brand would further expand again in 2018 with

3534-401: Was a non-departmental public body responsible for investigating mergers , markets and other enquiries related to regulated industries under competition law in the United Kingdom. It was a competition regulator under the Department for Business, Innovation and Skills (BIS). It was tasked with ensuring healthy competition between companies in the UK for the ultimate benefit of consumers and

3596-551: Was agreed, 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

3658-534: Was also responsible for taking appropriate actions and measures (known as remedies) following inquiries which had identified competition problems. The Government was still able to intervene on mergers that involve a specified public interest criterion such as media plurality, national security and financial stability. On 1 April 2014, the Competition Commission was replaced by the Competition and Markets Authority (CMA), which also took over several responsibilities of

3720-588: Was ordered to have its entire fleet of over 1,800 buses given MOT tests by July 1993 after 108 fleet vehicles were found by the Vehicle Inspectorate to be poorly maintained, with faults including faulty brakes, broken lights and bell pushes, oil leaks, and damaged passenger seating. In an examination of 343 WMT fleet vehicles, inspectors immediately prohibited 66 from running services and marked 42 as being in need of repair; twelve WMT buses found to have faults so serious that they were classified as "neglected" by

3782-496: Was renamed National Express West Midlands, with the adopted red and white livery being the sixth livery to be used by the company. The Travel Coventry operation was also rebranded as National Express Coventry . National Express West Midlands aimed for their whole fleet to be low floor by March 2010, a goal that was achieved in July of that year with the withdrawal of the final MCW Metrobuses in public service at Acocks Green garage. In 2015, National Express West Midlands launched

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3844-466: Was replaced, along with the former Travel Merry Hill depot, by a depot at Pensnett . In July 2010, Lea Hall depot closed. On 4 February 1998, Travel West Midlands were poised to become the first bus operator in the United Kingdom to operate a double-decker low-floor bus in service, with Birmingham Central garage having taken delivery of one of two Optare Spectra bodied DAF DB250LFs in October 1997. However, Abus of Bristol , who had also bought

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