The story
History
Background and creation
Prior to 1980, the majority of long-distance coach services in the United Kingdom were operated by National Express Coaches (NEX), a subsidiary of the state-owned National Bus Company (NBC), which sourced its vehicles from other NBC subsidiaries. Coach services in Scotland, including routes between Scotland and England, were operated by the subsidiaries of the Scottish Bus Group (SBG), which was also state-owned. On 6 October 1980, the coach service market was deregulated by the Transport Act 1980.
To compete effectively with the large and well-recognised network operated by the state-owned companies, a group of established independent coach operators decided to form a consortium to run over a range of routes. The group initially comprised Wallace Arnold, based in Leeds; Grey-Green, operating from London; Shearings of Altrincham; Morris Bros of Swansea; Ellerman Bee Line, of Middlesbrough; and Park's Motor Group, based in Hamilton. The six companies owned a combined fleet of over 700 coaches. The consortium chose the name British Coachways to present a nationwide image, and a small number of coaches received a new livery of white, red and blue to advertise the venture.
Into service and problems
British Coachways began operation on the day that coach services were deregulated, 6 October 1980, on a network based around five service corridors linking London with major population centres. To make its services attractive to passengers, the consortium charged extremely low fares, including some that were less than half of the cheapest fare offered by the rival NEX or SBG service. This meant that profit margins were very low. In addition, the venture suffered from not being able to use recognised departure points in some major cities, most notably Victoria Coach Station in London and Digbeth Coach Station in Birmingham.
The lower fares were intended to draw passengers away from the established services. However, within weeks of British Coachways commencing operation National Express cut their fares to match those offered by the consortium, reducing the appeal of the new routes. In Scotland the change was equally dramatic. Prior to deregulation, the cheapest fare offered by SBG between London and Glasgow was £23. British Coachways undercut this with a £15 return fare, which was also hoped to attract more passengers away from British Rail's services between the two cities. By May 1981, the consortium had increased its fare to £17, while SBG was charging only £15 for the same journey. Additional competition on the corridor was provided by Cotters Tours, which introduced a more expensive high-quality service between London and Glasgow in December 1980.
Passenger numbers were reasonable in the first year of the venture, but low compared to those achieved by the established services. In May 1981, it was reported that British Coachways' London-Glasgow service was carrying around 1,500 passengers per week, while the competing SBG service managed around 4,000 passengers per week over the same period. Loadings on British Coachways services were around half the capacity provided in its first year, although there was considerable variation between routes and journeys. The venture broke even but made no profit at the end of the 1980/81 financial year.
At the end of the first year of operation, the consortium had carried 750,000 passengers in total. Over the same period, NEX carried 12.5 million people over its network. Despite the introduction of British Coachways' competing routes, NEX's net profit increased by over 50% between 1980 and 1981.
Members of the consortium began to pull out in April 1981. By the summer of 1981 both Wallace Arnold and Grey-Green left the group; by the end of the year, both were operating joint services with National Express. However, Barton Transport and Excelsior Coaches joined in their place. The total number of services was not reduced, although some destinations were no longer served, while others were introduced to the network for the first time.
Decline and break-up
The exit from the group of Wallace Arnold and Grey-Green had seen more responsibility transferred to Shearings, now the largest of the six surviving members of British Coachways. When it pulled out in August 1982, sustaining the operations of the consortium became difficult. Morris Bros also left British Coachways in the summer of 1982, leaving the group with just four constituent companies. On 18 October 1982, the consortium found itself without a terminus in London when the site it had been using became unavailable. Services ceased operation from this date onwards.
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Subsequent history and legacy
The dissolution of British Coachways in October 1982 led to the withdrawal of all but one of its former routes by the four surviving constituent companies. Many of the companies went on to operate as contractors for National Express. The only route to continue was Excelsior's London-Poole service, which operated in competition with National Express until February 1998, when it was taken over by the larger operator.
The competition created by the 1980 Transport Act caused NEX's market share to reduce temporarily, although its passenger numbers increased in real terms. The lower fares, improved vehicle quality and better timetabling introduced after deregulation meant that its market share had recovered within three years. These improvements have since been attributed to the quality and cost of services offered by competing operators.
After the demise of British Coachways, National Express faced little competition for two decades. By 2001, significant competition by independents had reduced to only two routes, including the London-Glasgow corridor previously served by British Coachways. This situation continued until 2003, when the Stagecoach Group introduced its Megabus network. This differed from British Coachways by providing more frequent services over a wider range of routes, and in its use of nationwide advertising and yield management to set fares, with early bookers to a particular coach paying only £1 for a journey.
British Coachways' brand and livery disappeared rapidly after 1982. Vehicles were quickly painted back into their owners' liveries, and the brand was abandoned. However, in September 2010, a preserved Volvo B58 coach, new to Morris Bros, was painted into British Coachways livery for the thirtieth anniversary of the consortium's formation.
From Wikipedia’s article on British Coachways, shared under CC BY-SA 4.0.4
