US puts brakes on Stagecoach joint venture

Published on Tuesday 15 February 2011 20:29

STAGECOACH has been ordered to split its New York sightseeing joint venture, Twin America, or sell off some of its services by US authorities.

The venture was formed two years ago through a tie-up between Stagecoach's Gray Line New York business and CitySights NY.

While it has been up and running since then, the JV had been awaiting official approval from the US Surface Transportation Board (STB). However, the tie-up has now been denied on the grounds that it holds a near 90 per cent share of the sightseeing bus market in the "Big Apple".

The STB has told Twin America to either disband or sell off its interstate bus services, which account for about 1 per cent of revenues.

Perth-based Stagecoach said it has until 25 March to decide on the best course of action. If it plucks for divesting its interstate services, Twin America would move from the jurisdiction of the STB to that of the office of the New York State Attorney General, which would deliver its own verdict on the JV.

However a spokesman for Stagecoach downplayed the significance of the STB's ruling, saying the immediate implications were "very small".