National Express Group
|Type||Public (LSE: NEX)|
|Founded||1972: National Express branding
1992: National Express Group plc
|Headquarters||Birmingham, United Kingdom|
|Area served||United Kingdom, Europe & North America|
|Key people||John Armitt (Chairman)
Dean Finch (CEO)
|Products||Bus, coach, train & tram services|
|Revenue||£1,831.2 million (2012)|
|Operating income||£211.9 million (2012)|
|Net income||£61.3 million (2012)|
|Website||nationalexpressgroup.com Corporate Site
nationalexpress.com Consumer Portal
nationalexpresscorp.com North America Operations
National Express Group plc (LSE: NEX) is a multinational public transport company headquartered in Birmingham that operates bus, coach, train and tram services in the United Kingdom, United States, Canada, Spain, Portugal and Morocco and long-distance coach services across Europe. It is listed on the London Stock Exchange and is a constituent of the FTSE 250 Index.
- 1 History
- 2 Operations
- 3 Former operations
- 3.1 UK & Europe
- 3.2 Airports
- 3.3 Australian operations
- 3.4 USA & Canada
- 4 See also
- 5 References
- 6 External links
In 1972 the state owned National Bus Company decided to bring together the scheduled coach services operated by its bus operating companies under one brand. Initially branded as National, the National Express brand was first used in 1974. The National Express network was largely a branding exercise, with services continuing to be operated by the individual companies.
With the privatisation of the National Bus Company in the 1980s, National Express was subject to a management buyout in March 1988. The management team began to diversify, and in 1989 purchased Crosville Wales but its financial performance began to deteriorate from early 1990. A new management team took over the company in July 1991, with the backing of development and venture capital investors. The new team refocused the group on its core activities and sold Crosville Wales to British Bus. In October 1991 it purchased Speedlink, an operator of coach services between Gatwick and Heathrow Airports. In December 1992 National Express Group plc was floated on the London Stock Exchange. The prospectus stated the objectives of the company were to refocus and improve the profitability of the core coach business, to develop new products and services within its existing operations, and to acquire new businesses in the passenger transport market.
Acquisitions & Disposals
In 1993 Scottish Citylink, Eurolines and East Midlands Airport were acquired. In April 1995 National Express purchased West Midlands Travel, the formerly council owned bus network of Birmingham and the West Midlands and rebranded it Travel West Midlands in September 1996. This began the brand family of Travel ... local bus operations. Bournemouth Airport was acquired in April 1995.
In April 1996 National Express commenced operating its first UK rail franchises, Gatwick Express and Midland Mainline. Other franchises won in 1997 were Silverlink, Central Trains and ScotRail. To comply with a Competition Commission ruling on it winning the ScotRail franchise, National Express sold the Scottish Citylink operation to Metroline in August 1998.
In September 1998 Crabtree-Harmon, the seventh largest student transportation bus company in the United States was acquired, with 82 school bus contracts mainly in Missouri, but also in other Midwest states including Colorado, Iowa, Kansas, Oklahoma and Utah. In February 1999 Robinson Bus Service was purchased followed in August 1999 by Durham Transportation. These acquisitions placed National Express as one of the top three United States school bus operators.
In May 1999 National Express purchased Australia's largest private bus operator, National Bus Company. National Bus Company had bus operations in Brisbane, Melbourne and Perth, and also held a 57% shareholding in Westbus, Sydney's largest bus operator. Westbus also had a London coach operation. In August 1999 National Express won the M>Train, M>Tram and V/Line Passenger rail franchises in the Australian state of Victoria.
In February 2004 the London bus operations of Connex were purchased and rebranded Travel London. In April 2004 National Express East Anglia commenced operating the Greater Anglia Rail Franchise. In September 2004 National Express sold its Melbourne bus operations to Ventura Bus Lines, and Brisbane and Perth bus operations to Connex. After being placed in administration in January 2005, Westbus was sold to ComfortDelGro Cabcharge in August 2005.
In June 2005 the London bus arm of Tellings-Golden Miller was purchased and also rebranded Travel London. In October 2005 National Express agreed to buy most of operations of privately owned Spanish transport operator ALSA, which operates bus and coach services in Spain, Portugal and Morocco, and long-distance coach services to other parts of Europe. Alsa's operations in South America and China were retained by the previous owners.
In April 2007 National Express acquired Continental Auto, the second largest bus and coach operator in Spain.
In November 2007 South East England coach operator The Kings Ferry was purchased and an airport to hotel shuttle service in London branded Dot2Dot was launched. It was not successful and ceased in November 2008.
In November 2007 National Express announced plans to re-brand all of their operations under a new unified National Express identity. It was intended to achieve greater recognition for all the group companies, to coincide with recent acquisitions and after current rail operations had improved in reliability to warrant association with the established express coach image. It coincided with the appointment of a group director for all UK operations and relocation of the head office from London to Birmingham, bringing all operations under a single strategic management structure. Day to day management remains within individual companies.
Default on East Coast rail franchise
On 1 July 2009, the Department for Transport announced that it would take the National Express East Coast franchise into public ownership at the end of the year after National Express announced it would not invest any further funds into the franchise, effectively declaring it planned on defaulting. Further controversy ensued when, on 27 July 2009, the Commons Transport Committee said that ministers should consider operating the East Coast Main Line as a public railway after National Express announced they would walk away. Directly Operated Railways took over the East Coast franchise on 14 November 2009. Also in November 2009 the government announced that National Express East Anglia would not be granted a three-year extension that it had otherwise qualified for, because of the East Coast default.
Operational safety concerns
In July 2009, a junior transport minister, the Gillingham MP Paul Clark, spelt out a series of concerns to National Express in a letter following a meeting with an employee of National Express East Coast who lives in his constituency. The worker claimed that due to reduced maintenance checks, some trains were in use with defective brakes, an allegation strongly denied by the company, which said it would "never compromise on safety". He wrote: "As a result of reduced maintenance checks, 'some long-haul sets [trains] are in use with brake defects'. Increasing cuts in staff combined with an increasing pressure to ensure that trains run safely has resulted in fears among staff that a major accident is 'just around the corner'." Passengers, he added, "have been 'poisoned' as a result of coffee machines not being cleaned correctly, with cleaning fluids left in situ". The minister said he was "shocked and appalled at the information with which I've been provided. You will understand that these allegations are exceptionally serious".
Offers for the company
With the company's finances under stress largely as a result of having overbid for the National Express East Coast rail franchise, National Express became a takeover target in 2009. In June 2009 a takeover offer from fellow transport operator FirstGroup was rejected. On 3 September 2009 National Express' largest shareholder, Spain's Cosmen family with 18.5%, and CVC Capital Partners made a takeover offer of £765 million for the company. The Takeover Panel set a deadline of 11 September 2009 for all prospective bids.
National Express agreed to allow the Cosmen/CVC consortium to undertake due diligence in September 2009. The Cosmen/CVC consortium had reached an agreement to sell the UK bus and rail operations to Stagegroup if its offer was successful. The deadline for offers was subsequently extended to 16 October 2009.
On 16 October 2009 the Cosmen/CVC consortium withdrew their offer. with Stagecoach submitting a new all-share bid later the same day. This too did not proceed and in November 2009 National Express announced it would raise the necessary capital through a share issue.
National Express' operations are summarised below:
UK & Europe
Bus & coach operations
The bus and coach services operated by the group are:
- AirLinks (contract bus operation at UK airports)
- National Express Dundee (bus operation in and around Dundee, Scotland)
- G&N Wishart (Rural bus and coach arm of National Express Dundee)
- National Express West Midlands (Major bus operations in Birmingham and the rest of the West Midlands)
- Eurolines (express coach services between the UK and other European countries)
- National Express Coaches (long distance express and airport coach services in the UK)
- The Kings Ferry (commuter services and private coach hire)
- ALSA including Continental-Auto (coach services in Spain and Western Europe)
- City2City (express coach services in Germany)
Railway & tram operations
The railway and tram services operated by the group are:
- c2c (passenger rail operation in the UK)
- Maintrain (train maintenance in the UK)
- National Express have been shortlisted to bid for the Essex Thameside, Crossrail and ScotRail franchises
- Starting in December 2015, National Express will operate the Rhein-Münsterland-Express (RE7) from Rheine to Krefeld and the Rhein-Wupper-Bahn (RB48) from Wuppertal-Oberbarmen to Bonn-Mehlem in the German state of North Rhine-Westphalia.
USA & Canada
Bus & coach operations
- National Express Transit (transit and paratransit bus operation in the US, formed in 2012)
- Durham School Services (school bus operation in the US)
- Stock Transportation (school bus operation in Canada)
UK & Europe
Bus & coach operations
In May 2009 National Express sold some of their bus operations to Abellio:
- Travel London (bus operation under contract to Transport for London in London)
- Scottish Citylink sold to Metroline in August 1998 in order to comply with a Competition Commission requirement for National Express to operate the ScotRail rail franchise
Railway & Tram operations
Rail franchises lost in refranchising were:
- Wales & Borders passed to Arriva Trains Wales in December 2003
- ScotRail passed to First ScotRail in October 2004
- Wessex Trains, absorbed into Greater Western franchise and passed to First Great Western in April 2006
- West Anglia Great Northern split into two parts: West Anglia services transferred to National Express East Anglia April 2004, Great Northern services passed to First Capital Connect in April 2006
- In November 2007 several franchises were lost in a general restructure:
- Gatwick Express incorporated into Southern franchise in June 2008
- National Express East Coast passed to Directly Operated Railways in November 2009
- National Express East Anglia passed to Greater Anglia in February 2012
London & Continental Railways
National Express had a 17.5% shareholding in London & Continental Railways from its formation in September 1994 until it was nationalised by the UK Government in 2009. London & Continental Railways was responsible for building the High Speed 1 project. National Express also held a 40% stake in the Inter-Capital and Regional Rail consortium which held the management contract for the UK arm of the Eurostar operation, London & Continental Railway's subsidiary Eurostar International Limited from 1998 to 2010.
In the 1990s National Express moved into the privatisation of airports, purchasing East Midlands Airport, Bournemouth Airport, and Humberside Airport. In a move to concentrate on bus and rail provision, Humberside was sold to Manchester Airports Group in 1999 followed by Bournemouth and East Midlands in February 2001.
Bus & coach operations
Australian bus companies previously operated by the group include:
- Westbus and Glenorie Bus Company in Sydney, sold to ComfortDelGro Cabcharge
- Blue Ribbon in the Hunter Region, sold to ComfortDelgro Cabcharge
- National Bus Company, Melbourne, sold to Ventura Bus Lines
- National Bus Company, Brisbane, sold to Connex
- Southern Coast Transit, Perth, sold to Connex
Railway & tram operations
In 1999 the Group gained the Australian franchises M>Train, M>Tram and V/Line Passenger after privatisation by the Government of Victoria. After incurring large losses and being unable to renegotiate the franchise contracts, the operations were handed back to the State Government. M>Train was relet to Connex and M>Tram to KDR Melbourne, V/Line remained with the government.
USA & Canada
Bus & coach operations
- ATC (transit and paratransit operations in the United States and Canada, sold to Veolia Environnement in 2005 and since renamed Veolia Transportation).
- Preliminary Results 2012
- National Express: At a glance
- Companies House extract company no 2590560 National Express Group plc
- National Express Group: Our History National Express
- National Express Group PLC and Saltire Holdings Ltd Monopolies and Mergers Commission February 1994 page 3
- Arriva Buses Wales history Arriva
- Competition Commission report 1996 paragraphs 3.5 to 3.7
- Competition Commission report 1996 Page 31
- History of East Midlands Airport East Midlands Airport
- Bournemouth Airport History Bournemouth Airport
- National Express told to sell Citylink local.gov.uk 29 May 1998
- History of Metroline Metroline
- Travel Dundee - celebrating 10 years[dead link] Travel Dundee news 23 February 2007
- National Express buys US school bus firm The Independent 17 August 1999
- Acquisition of Australian urban bus operator National Bus Company[dead link] National Express 10 May 1999
- Westbus UK History Westbus UK
- National Express Group Awarded Three Franchises National Express corporate news June 1999
- Nation Express takes root in Melbourne Railway Gazette 1 October 2000
- National Express £165m rail coup This is Money 17 July 2000
- National Express buys Prism for £166m The Telegraph 19 July 2000
- National Express buys Prism for £166m The Guardian 19 July 2000
- National Express walks out of Australian rail service The Telegraph 17 December 2002
- Nat Express pull back Down Under The Telegraph 3 September 2004
- National Express buys 200 London buses The Telegraph 27 February 2004
- National Express Group Announced as Preferred Bidder for New Greater Anglia Franchise Strategic Rail Authority press release 22 December 2003
- National Express sells buses The Age (Melbourne) 22 September 2004
- Connex pursues further development in Australia Connex press release 7 September 2004
- New Westbus owners guarantee jobs, services Sydney Morning Herald 22 August 2005
- ComfortDelGro Cabcharge company profile ComfortDelGro Cabcharge
- National Express Group purchases the London Bus Division of Tellings Golden Miller National Express 1 June 2005
- National Express in Spanish Deal BBC News 11 October 2005
- National Express acquires Continental Auto National Express 27 April 2007
- The Group buys Kings Ferry Travel Group National Express 12 November 2007
- Launch of dot2dot National Express 12 November 2007
- National Express gives up on Dot2Dot busandcoach.com 3 November 2008
- New Identity for National Express Group National Express 15 November 2007
- Buses Magazine December 2007, Ian Allen Publishing
- National Express awarded contract for growth on InterCity East Coast Department for Transport 14 August 2007
- National Express Group plc agreement to sell Travel London National Express 21 May 2009
- National Express celebrates German rail success National Express 7 February 2013
- National Express plans German invasion The Telegraph 7 February 2013
- Milmo, Dan (2009-07-01). "£30bn shortfall threatens rail and road plans". London: The Guardian. Retrieved 2009-07-01.
- "East coast rail link to London should stay in state hands – MPs". The Scotsman. 2009-07-27. Retrieved 2009-07-27.
- "East Coast rail change confirmed". BBC News Online. 2009-11-05. Retrieved 2009-11-05.
- National Express loses East Anglia franchise three years early The Telegraph 26 November 2009
- Teather, David (2009-07-27). "National Express's east coast line is 'an accident waiting to happen'". London: The Guardian. Retrieved 2009-07-27.
- "National Express turns down bid". British Broadcasting Corporation. 2009-06-29. Retrieved 2009-06-29.
- Statement regarding possible offer National Express 3 September 2009
- National Express gets £765m bid BBC News 3 September 2009
- Bowker, John (2009-05-08). "UPDATE 2-National Express suitors given Sept bid deadline". Reuters. Retrieved 2009-09-10.
- Statement regarding possible offer National Express 11 September 2009
- Power, Helen; Costello, Miles (2009-09-07). "National Express looks at options beyond CVC". London: The Times. Retrieved 2009-09-10.
- Statement regarding possible offer National Express corporate news 25 September 2009
- Statement regarding possible offer National Express 16 October 2009
- "Bid failure hits National Express". BBC News Online. 2009-10-16. Retrieved 2009-10-25.
- Statement regarding press speculation National Express 19 October 2009
- "Rival renews National Express bid". BBC News Online. 2009-10-19. Retrieved 2009-10-25.
- Publication of Prospectus National Express 11 November 2009
- National Express Group: Our businesses National Express
- "Neues Gesicht bei den Nahverkehrsbetreibern in NRW". Verkehrsverbund Rhein-Ruhr. February 6, 2013. Retrieved October 9, 2013.
- "Eurostar restructure sees UK expand rail stake". AllRailJobs.co.uk. Retrieved 2013-10-22.
- "Annual Report and Accounts 2010". National Express Group plc. Retrieved 2013-10-22.
- Manchester Airports Group Annual Report 31 March 2001 Manchester Airport Group
- Manchester Airport spreads its wings BBC News 19 February 2001
- 4th Major Hub for Air Traffic moves ahead New York Times 25 January 2007
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