National Express Group

"National Express" redirects here. For other uses, see National Express (disambiguation).
National Express Group
Public
Traded as LSE: NEX
Industry Public transport
Founded 1972: National Express branding
1992: National Express Group plc
Headquarters Birmingham, United Kingdom
Area served
 Europe and North America
Key people
 Sir John Armitt
(Chairman)
Dean Finch
(Group Chief Executive)
Products Bus, coach, train & tram services
Revenue £1,919.8 million (2015)[1]
£193.5 million (2015)[1]
£109.1 million (2015)[1]
Website www.nationalexpressgroup.com

National Express Group plc is a British multinational public transport company headquartered in Birmingham that operates bus, coach, train and tram services in the United Kingdom, United States, Canada, Spain, Portugal, Malta, Germany 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.

History

Duple Dominant bodied Leyland Tiger in Liverpool in 1982 in the original livery
Midland Mainline High Speed Train at London St Pancras
Alexander ALX400 bodied Dennis Trident 2 on route 3 at Trafalgar Square in April 2008

In 1972 the state owned National Bus Company decided to bring together the scheduled coach services operated by its bus operating companies in the United Kingdom under one brand. Sir Frederick Wood, a prominent businessman and industrialist, was asked to oversee the creation of this new business model and led the group as its chairman from 1972 to 1978.[2] Initially branded as National, the National Express brand was first used in 1974.[3][4]

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[5] 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.[6] In October 1991 it purchased Speedlink, an operator of coach services between Gatwick and Heathrow Airports.[4] In December 1992 National Express Group plc was floated on the London Stock Exchange.[3]

Acquisitions and disposals

In 1993 Scottish Citylink, Eurolines and East Midlands Airport were acquired.[7][8] In April 1995 National Express purchased West Midlands Travel, the formerly council owned bus network of Birmingham and the West Midlands[3] 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.[9]

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.[10][11]

In February 1997 Taybus Public Transport was acquired and rebranded Travel Dundee.[12]

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.[13]

In May 1999 National Express purchased Australia's largest private bus operator, National Bus Company.[14] 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.[15] In August 1999 National Express won the M>Train, M>Tram and V/Line Passenger rail franchises in the Australian state of Victoria.[16][17]

In January 2000, National Express expanded into the American market by acquiring ATC, a public transportation operator.[18] In July 2000 Prism Rail was purchased adding the c2c, Wales & Borders, Wessex Trains and West Anglia Great Northern franchises to National Express' portfolio.[19][20][21]

In December 2002 National Express handed in its Victoria rail franchises having been unable to renegotiate financial terms with the State Government.[22][23]

In February 2004 the London bus operations of Connex were purchased and rebranded Travel London.[24] In April 2004 National Express East Anglia commenced operating the Greater Anglia rail franchise.[25] In September 2004 National Express sold its Melbourne bus operations to Ventura Bus Lines, and Brisbane and Perth bus operations to Connex.[26][27] After being placed in administration in January 2005, Westbus was sold to ComfortDelGro Cabcharge in August 2005.[28][29]

In June 2005 the London bus arm of Tellings-Golden Miller was purchased and also rebranded Travel London.[30] In July 2005, National Express sold ATC to Connex.[31] 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.[32]

In April 2007 National Express acquired Continental Auto, the second largest bus and coach operator in Spain.[33]

Dot2Dot Volkswagen in London in April 2008

In November 2007 South East England coach operator The Kings Ferry was purchased[34] and an airport to hotel shuttle service in London branded Dot2Dot was launched.[35] It was not successful and ceased in November 2008.[36]

In November 2007 National Express announced plans to re-brand all of their operations under a new unified National Express identity.[37] 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.[38]

In December 2007 National Express East Coast commenced operating the InterCity East Coast franchise.[39] In May 2009 National Express sold Travel London to Abellio.[40]

In February 2013 National Express was awarded two regional rail contracts in Germany by the Verkehrsverbund Rhein-Ruhr, Zweckverband Nahverkehr Rheinland and Zweckverband Nahverkehr Westfalen-Lippe authorities to commence in December 2015.[41][42]

In January 2015 the Bayerische Eisenbahngesellschaft announced that National Express will operate the Nuremberg S-Bahn system from December 2018. It will the first Deutsche Bahn S-Bahn network to be taken over by a private operator, all today's private S-Bahn lines in Germany were completely new. It was also announced that the network, which will include the Allersberg-Express, will be operated with Škoda 7Ev trains, built by Škoda Vagonka. These EMUs will replace the older trains with Class 143 locomotives and x-cars and the newer Talent 2 EMUs.[43]

On 16 June 2015 it was announced that the parts 2 and 3 of the Rhein-Ruhr-Express which will be introduced in 2018 will be operated by National Express. This include the today's Regional-Express services RE4, RE5 and RE6 in Northrhine-Westphalia.[44]

Default on East Coast rail franchise

National Express East Coast High Speed Train at London King's Cross in July 2009. 4 months later National Express would be stripped of this franchise due to poor financial management.

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.[45]

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.[46] Directly Operated Railways took over the East Coast franchise on 14 November 2009.[47] 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.[48]

Operational safety concerns

On 3 January 2007 a speeding National Express coach overturned on the M4/M25 slip road, leaving three passengers dead. The driver was jailed for five years.[49]

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".[50]

School bus drivers in the US have raised concerns about the safety of the buses run by Durham, a subsidiary of National Express and the second largest operator of school bus services in North America. According to representatives of Durham bus drivers, fluid leaks, tires that need to be replaced, black mold and non-functional emergency equipment are regular concerns, whilst workers continued to operate buses while sick because they cannot afford to miss a day of work and drivers are not paid for all the time they work.[51]

Offers for the company

Park's of Hamilton Plaxton Elite bodied Volvo B9R in Bolton in April 2013

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.[52] 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.[53][54] The Takeover Panel set a deadline of 11 September 2009 for all prospective bids.[55]

National Express agreed to allow the Cosmen/CVC consortium to undertake due diligence in September 2009.[56] The Cosmen/CVC consortium had reached an agreement to sell the UK bus and rail operations to Stagecoach Group if its offer was successful.[57] The deadline for offers was subsequently extended to 16 October 2009.[58]

On 16 October 2009 the Cosmen/CVC consortium withdrew their offer.[59][60] with Stagecoach submitting a new all-share bid later the same day.[61][62] This too did not proceed and in November 2009 National Express announced it would raise the necessary capital through a share issue.[63]

Operations

National Express' operations are summarised below:[64]

UK and Europe

National Express West Midlands Wright Eclipse Gemini bodied Volvo B7TL in Birmingham in September 2010
The Kings Ferry Caetano Levante bodied Volvo B13R in May 2013

Bus and coach

The bus and coach services operated by the group are:

Bus
Coach

Railway and tram

The railway and tram services operated by the group are:

Railway
c2c Class 357 Electrostar at Upminster in September 2010
Tram

USA and Canada

Durham School Services school bus in New York City

Bus

Middle East

Bus

In February 2015, the Bahrain Public Transport Company in which National Express holds a 50% shareholding commenced operating a 10 year concession in Barhrain.[69]

Former operations

Travel Surrey Plaxton Pointer bodied Dennis Dart in Byfleet in December 2008

UK and Europe

Bus and coach

Bus

In May 2009 National Express sold some of their bus operations to Abellio:

Coach

Railway and Tram

Railway
Central Trains Class 153 at Lincoln in May 2004
One Class 317 at Cambridge in July 2005

Rail franchises lost in refranchising were:

London and Continental Railways

National Express had a 17.5% shareholding in London and Continental Railways from its formation in September 1994 until it was nationalised by the UK Government in 2009. London and 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 and Continental Railway's subsidiary Eurostar International Limited from 1998 to 2010.[71][72]

Airports

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.[73][74]

Until November 2007 the group also operated Stewart International Airport in New Windsor, New York. However, the lease was sold to the public Port Authority of New York and New Jersey.[75]

Australian operations

Westbus Custom Coaches-bodied Mercedes-Benz O405 in Sydney
M>Tram B-class tram in Melbourne in August 2001

Bus and coach

Australian bus companies previously operated by the Group include:

Railway and tram

In 1999 the Group gained the Australian franchises M>Train, M>Tram and V/Line Passenger, following the privatisation of rail and tram services 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 re-let to Connex and M>Tram to Transdev. V/Line became a government-owned corporation.[76]

USA and Canada

Bus and coach

Bus

See also

References

  1. 1 2 3 "Annual report 2015" (PDF). National Express Group. Retrieved 10 April 2016.
  2. ↑ "Sir Frederick Wood". 24 March 2003. Retrieved 21 September 2014.
  3. 1 2 3 National Express Group: Our History National Express
  4. 1 2 National Express Group PLC and Saltire Holdings Ltd Monopolies and Mergers Commission February 1994 page 3
  5. ↑ Arriva Buses Wales history Arriva
  6. ↑ Competition Commission report 1996 paragraphs 3.5 to 3.7
  7. ↑ Competition Commission report 1996 Page 31
  8. ↑ History of East Midlands Airport East Midlands Airport
  9. ↑ Bournemouth Airport History Bournemouth Airport
  10. ↑ National Express told to sell Citylink local.gov.uk 29 May 1998
  11. ↑ History of Metroline Metroline
  12. ↑ Travel Dundee - celebrating 10 years Travel Dundee news 23 February 2007 Archived 30 July 2013 at the Wayback Machine.
  13. ↑ National Express buys US school bus firm The Independent 17 August 1999
  14. ↑ Acquisition of Australian urban bus operator National Bus Company National Express 10 May 1999
  15. ↑ Westbus UK History Westbus UK
  16. ↑ National Express Group Awarded Three Franchises National Express corporate news June 1999
  17. ↑ Nation Express takes root in Melbourne Railway Gazette 1 October 2000
  18. ↑ "National Express Buys ATC". Retrieved 25 May 2015.
  19. ↑ National Express £165m rail coup This is Money 17 July 2000
  20. ↑ National Express buys Prism for £166m The Telegraph 19 July 2000
  21. ↑ National Express buys Prism for £166m The Guardian 19 July 2000
  22. ↑ National Express walks out of Australian rail service The Telegraph 17 December 2002
  23. ↑ Nat Express pull back Down Under The Telegraph 3 September 2004
  24. ↑ National Express buys 200 London buses The Telegraph 27 February 2004
  25. ↑ National Express Group Announced as Preferred Bidder for New Greater Anglia Franchise Strategic Rail Authority press release 22 December 2003
  26. ↑ National Express sells buses The Age (Melbourne) 22 September 2004
  27. ↑ Connex pursues further development in Australia Connex press release 7 September 2004
  28. ↑ New Westbus owners guarantee jobs, services Sydney Morning Herald 22 August 2005
  29. ↑ ComfortDelGro Cabcharge company profile ComfortDelGro Cabcharge
  30. ↑ National Express Group purchases the London Bus Division of Tellings Golden Miller National Express 1 June 2005
  31. ↑ "Connex, transportation division of Veolia Environnement, announces major acquisition". Retrieved 25 May 2015.
  32. ↑ National Express in Spanish Deal BBC News 11 October 2005
  33. ↑ National Express acquires Continental Auto National Express 27 April 2007
  34. ↑ The Group buys Kings Ferry Travel Group National Express 12 November 2007
  35. ↑ Launch of dot2dot National Express 12 November 2007
  36. ↑ National Express gives up on Dot2Dot busandcoach.com 3 November 2008
  37. ↑ New Identity for National Express Group National Express 15 November 2007
  38. ↑ Buses Magazine December 2007, Ian Allen Publishing
  39. ↑ National Express awarded contract for growth on InterCity East Coast Department for Transport 14 August 2007
  40. ↑ National Express Group plc agreement to sell Travel London National Express 21 May 2009
  41. ↑ National Express celebrates German rail success National Express 7 February 2013
  42. ↑ National Express plans German invasion The Telegraph 7 February 2013
  43. ↑ "National Express clears Nuremberg S-Bahn legal hurdle". Rail Journal. 16 December 2015. Retrieved 10 April 2016.
  44. ↑ "Abellio und National Express sollen den Betrieb der RRX-Linien übernehmen". vrr.de (in German). Verkehrsverbund Rhein-Ruhr AöR. 6 June 2015. Retrieved 11 October 2015.
  45. ↑ Milmo, Dan (1 July 2009). "£30bn shortfall threatens rail and road plans". London: The Guardian. Retrieved 1 July 2009.
  46. ↑ "East coast rail link to London should stay in state hands – MPs". The Scotsman. 27 July 2009. Retrieved 27 July 2009.
  47. ↑ "East Coast rail change confirmed". BBC News Online. 5 November 2009. Retrieved 5 November 2009.
  48. ↑ National Express loses East Anglia franchise three years early The Telegraph 26 November 2009
  49. ↑ "Safety questions begin after motorway coach crash leaves two dead and up to 60 injured". The Guardian. 5 January 2007. Retrieved 10 April 2016.
  50. ↑ Teather, David (27 July 2009). "National Express's east coast line is 'an accident waiting to happen'". London: The Guardian. Retrieved 27 July 2009.
  51. ↑ Deniz, Kara. "Durham School Bus Drivers Speak Out About Safety, Human Rights Concerns". Teamsters. Retrieved 18 April 2013.
  52. ↑ "National Express turns down bid". British Broadcasting Corporation. 29 June 2009. Retrieved 29 June 2009.
  53. ↑ Statement regarding possible offer National Express 3 September 2009
  54. ↑ National Express gets £765m bid BBC News 3 September 2009
  55. ↑ Bowker, John (8 May 2009). "UPDATE 2-National Express suitors given Sept bid deadline". Reuters. Retrieved 10 September 2009.
  56. ↑ Statement regarding possible offer National Express 11 September 2009
  57. ↑ Power, Helen; Costello, Miles (7 September 2009). "National Express looks at options beyond CVC". London: The Times. Retrieved 10 September 2009.
  58. ↑ Statement regarding possible offer National Express corporate news 25 September 2009
  59. ↑ Statement regarding possible offer National Express 16 October 2009
  60. ↑ "Bid failure hits National Express". BBC News Online. 16 October 2009. Retrieved 25 October 2009.
  61. ↑ Statement regarding press speculation National Express 19 October 2009
  62. ↑ "Rival renews National Express bid". BBC News Online. 19 October 2009. Retrieved 25 October 2009.
  63. ↑ Publication of Prospectus National Express 11 November 2009
  64. ↑ National Express Group: Our businesses National Express
  65. ↑ "Neues Gesicht bei den Nahverkehrsbetreibern in NRW". Verkehrsverbund Rhein-Ruhr. 6 February 2013. Retrieved 9 October 2013.
  66. ↑ "Englische Firma übernimmt S-Bahn-Netz um Nürnberg". Nordbayern.de. 2 February 2015. Retrieved 2 February 2015.
  67. ↑ "Weiterer Erfolg für National Express in Deutschland". National Express Germany. 2 February 2015. Retrieved 2 February 2015.
  68. ↑ "Busbud Bags $9M For Its Coach Travel Booking Platform". Techcrunch. 9 July 2014. Retrieved 23 July 2014.
  69. ↑ Ministry of Transportation Appoints New Public Bus Operator Ministry of Transport & Telecommunications 30 September 2014
  70. ↑ "City2City". Retrieved 29 October 2014.
  71. ↑ "Eurostar restructure sees UK expand rail stake". AllRailJobs.co.uk. Retrieved 22 October 2013.
  72. ↑ "Annual Report and Accounts 2010". National Express Group plc. Retrieved 22 October 2013.
  73. ↑ Manchester Airports Group Annual Report 31 March 2001 Manchester Airport Group
  74. ↑ Manchester Airport spreads its wings BBC News 19 February 2001
  75. ↑ 4th Major Hub for Air Traffic moves ahead New York Times 25 January 2007
  76. ↑ Annual Report 30 June 2013 V/Line
  77. ↑ Annual Report 31 December 2005 National Express

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