Stagecoach venture ordered to sell services
The competition watchdog ordered bus operators Stagecoach and Scottish Citylink to sell some services after it warned of possible higher prices and reduced services as a result of their joint venture.
The Competition Commission (CC) said the Scottish joint venture would have to sell some of its services to a new and independent owner after flagging possible issues on the Glasgow to Aberdeen and Edinburgh to Inverness routes.
"Customers benefit from competition and we do not see how this joint venture can preserve these benefits for passengers when previously these companies had been competing vigorously for their custom," the CC said on Monday.
"Following the joint venture, we have seen evidence of fares increasing more than costs on some routes," Inquiry Chairman John Baillie added in the statement.
Scottish Citylink is owned by Singapore based ComfortDelGro Corp Ltd the second biggest land transport company in the world. In Britain, it operates as Braddell Plc.
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