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2 months ago
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The largest private bus company in the country has made major changes to its routes that could leave millions cut off.
Megabus, which covers 500 cities across America, has pulled all its routes in Texas, among other states, as its parent company moves through bankruptcy.
The budget travel company stopped its routes that once went between Dallas, Austin, San Antonio, and Houston on August 16, according to a release.
The company, which has operated since 2006, has also stopped its routes between Atlanta, Charlotte, Durham, Richmond, and Washington DC.
Ticketholders have been informed and refunds have been sent, according to the statement.
The largest private bus company in the country has made major changes to its routes
Some other popular Megabus routes have been passed over to other companies.
Those include the route between New York, Baltimore, Philadelphia, and Washington DC, which will now be run by Peter Pan Bus Lines.
Similarly the route between New York, State College, Harrisburg, King of Prussia, and Pittsburgh will now be operated by Fullington Trailways.
Customers that booked rides on either route on or before August 15 will be emailed instructions on rebooking by Megabus.
The rebooking process must be completed to receive a valid ticket, the company confirmed.
Megabus' parent company Coach USA filed for bankruptcy in June blaming a slow bounce back from the pandemic.
Megabus became a hit for selling tickets from $1, but passenger numbers fell during the pandemic
Megabus covers more than 500 cities across America
Ridership levels have rebounded since the lows of 2020, but they were still only 45 percent of pre-pandemic levels in 2023.
The company filed for Chapter 11 bankruptcy in Delaware, seeking to sell its assets and shed debt incurred in an ill-timed 2019 private equity buyout.
It was acquired by private equity firm Variant Equity Advisors for $270 million, mostly using debt that is still on the company's books.
Coach quickly ran into trouble servicing its debt, as the pandemic caused bus ridership to decline by 90 percent from 2019 to 2020, according to its bankruptcy filing.
The company has faced higher interest rates and increased costs for basic needs like employee retention and fuel, it said.
Coach USA operates in 27 locations in the US and Canada, with 2,700 employees and 2,070 buses operating. It carries 38 million passengers a year.
The company operates several other bus brands in addition to Coach and Megabus, including Dillon's Bus Company and Go Van Galder.
English (US)