Mobico Group, formerly National Express Group, is a British multinational public transport company with headquarters in Birmingham, England.[3] Domestically it currently operates bus and coach services under brands including National Express. The company also operates transport services including trains abroad: in the Republic of Ireland, United States, Canada, Spain, Portugal, Malta, Germany, Bahrain, Morocco, Qatar, United Arab Emirates and South Korea, and long-distance coach services across Europe. It is listed on the London Stock Exchange and is a constituent of the FTSE 250 Index.
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.[4] Initially branded as National, the National Express brand was first used in 1974.[5][6]
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 pursued various means of diversification; during 1989, the company purchased Crosville Wales.[7]
1990s
Starting in early 1990s, National Express' financial performance began to deteriorate; this led to a new management team taking over the company in July 1991 which had the backing of ECI Partners, a mid-market private equity firm. The new team refocused the group on its core activities, leading to the sale of Crosville Wales to British Bus.[8] During October 1991, it purchased Speedlink, an operator of coach services between Gatwick and Heathrow Airports.[6] In December 1992, National Express Group plc was floated on the London Stock Exchange.[5]
In February 1997, Taybus Public Transport was acquired and rebranded Travel Dundee.[14]
During 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. During February 1999, Robinson Bus Service was purchased; it was followed in August 1999 by Durham Transportation. These acquisitions placed National Express as one of the top three United States school bus operators.[15]
In May 1999, National Express purchased Australia's largest private bus operator, National Bus Company.[16] 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.[17] In August 1999, National Express was awarded the M>Train, M>Tram and V/Line Passenger rail franchises in the Australian state of Victoria.[18][19]
In December 2002, National Express handed in its rail franchises in Victoria, Australia, having been unable to renegotiate financial terms with the State Government.[23][24]
In June 2005, the London bus arm of Tellings-Golden Miller was purchased by National Express, after which it was rebranded as Travel London.[31] During July 2005, National Express sold ATC to Connex.[32] In October 2005, the company agreed to buy most of the 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.[33]
In April 2007, National Express acquired Continental Auto, the second-largest bus and coach operator in Spain.[34]
During November 2007, South East England coach operator The Kings Ferry was purchased[35] and an airport to hotel shuttle service in London branded Dot2Dot was launched.[36] Dot2Dot did not prove to be commercially viable and thus ceased operations in November 2008.[37]
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 remained within individual companies.[38]
During February 2007, the Department for Transport announced that National Express, along with Arriva, First, and Virgin Rail Group, had been shortlisted to lodge bids for the InterCity East Coast franchise.[39] In August 2007, the Department for Transport awarded the Intercity East Coast franchise to National Express, leading to the creation of National Express East Coast (NXEC) shortly thereafter.[40][41] Under the terms of its franchise agreement, National Express committed to paying a £1.4-billion premium to the Department of Transport over a time span of seven years and four months. However, numerous rail analysts promptly voiced concerns that the company had paid too much for the franchise, and had effectively repeated GNER's mistake in order to secure the franchise.[42][43] On 9 December 2007, National Express East Coast commenced operations, taking over from Great North Eastern Railway.[44]
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.[46]
In July 2009, a junior transport minister, the Gillingham MP Paul Clark, listed 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 that was strongly denied by the company, which stated 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".[47]
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, tyres that need to be replaced, black mould 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.[48]
By 2009, National Express East Coast had come under increasing financial pressure due to various factors, including compounding rises in fuel prices and the poor economic climate of the time, commonly known as the Great Recession. In contrast to the company's projected revenue increases during its franchise, NXEC's actual operating income (generated primarily from ticket sales) had decreased by 1 percent during the first half of 2009.[49] According to Rail, the franchise had quickly garnered a reputation for cost-cutting and a decline in service levels, particularly in terms of the onboard catering.[43] It had also introduced various new charges, such as a £2.50 per journey leg for seat reservations.[50][51][52]
During April 2009, National Express confirmed that the company was still pursuing talks with the government over possible financial assistance with the franchise, either through a reduction in the premium due or some other form of assistance.[53][43] During these negotiations, the company had reportedly offered to pay over £100 million to be released from its commitment to operate the franchise.[49] In 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 to default.[54] In defaulting on the franchise, National Express directly incurred losses of £72 million by forfeiting bonds.[49]Directly Operated Railways took over the East Coast franchise on 14 November 2009.[55]
The franchise failure sparked public and industry calls for the permanent public ownership of the InterCity East Coast franchise, or even the complete scrapping of the entire franchise system.[49] 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; this was reportedly a result of the East Coast default.[56][57] However, National Express were subsequently granted an extension until October 2011, followed by another through to February 2012.[58]
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.[59] 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.[60][61] The Takeover Panel set a deadline of 11 September 2009 for all prospective bids.[62]
During September 2009, National Express agreed to allow the Cosmen/CVC consortium to undertake due diligence.[63] During the following month, the Cosmen/CVC consortium had reportedly reached an agreement to sell the UK bus and rail operations to rival transport operator Stagecoach Group if its offer was successful.[64] The deadline for offers was subsequently extended to 16 October 2009.[65]
On 16 October 2009, the Cosmen/CVC consortium announced that they had withdrawn their offer.[66][67] That same day, Stagecoach submitted its own all-share bid to acquire National Express.[68][69] This, too, did not proceed and, in November 2009, National Express announced it would raise the necessary capital through a share issue.[70]
2010s
During February 2013, National Express Germany was awarded two regional rail contracts by the Verkehrsverbund Rhein-Ruhr, Zweckverband Nahverkehr Rheinland and Zweckverband Nahverkehr Westfalen-Lippe authorities that commenced in December 2015.[71][72]
In January 2015, the Bayerische Eisenbahngesellschaft announced that National Express had been selected to operate the Nuremberg S-Bahn system from December 2018. It was to have been the first Deutsche Bahn S-Bahn network to be taken over by a private operator.[73] However, in October 2016, National Express elected to pull out, citing a delay in the ability to order new rolling stock while a challenge brought on by Deutsche Bahn was resolved, would make its bid unviable.[74]
In 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 includes Regional-Express services RE4, RE5 and RE6 in Northrhine-Westphalia.[75]
In December 2016, coach operator Clarkes of London was purchased with 56 vehicles.[76][77] In March 2020, Lucketts Travel was purchased.[78][79]
Takeover attempt and rebranding
During September 2021, it was reported that National Express had entered into talks to acquire Stagecoach Group.[80] In December 2021, a deal was agreed between the boards of the two companies: however, it was subject to both shareholder approval and regulatory scrutiny.[81][82] Having originally recommended shareholders accept the National Express offer, in March 2022, the Stagecoach board of directors withdrew its recommendation in favour of a takeover offer from a DWS managed investment fund.[83][84]
In January 2023, the coach excursion business of seven National Express Transport Solutions companies (Coliseum Coaches, Lucketts Travel, Mortons Travel, Solent Tours, Stewarts Tours, Woods Tours and Worthing Coaches) were brought together under the 'Touromo' brand. Touromo aimed to provide day trips and short breaks to destinations across the UK and Europe as one combined brand, and National Express planned to expand the brand outside the West Midlands and South East England to operate across the United Kingdom.[85][86] Six months later, however, it was announced that Touromo was to cease operations and that National Express Transport Solutions was to cease offering day trips and holiday excursions in October 2023.[87]
In June 2023, National Express changed its name to Mobico Group.[88][89]
In August 2024, Mobico announced that they had begun the process of selling its North American school bus division, including Durham School Services, in order to reduce its debt.[3]
In 2016, National Express coach tickets are distributed through Europe by the online booking platform SoBus.[92]
In July 2023, National Express announced they would be ceasing the operation of coach tours having only launched the Tourismo brand of coach tours in January the same year.[93]
Following the financial difficulties of Abellio GmbH, National Express was awarded an emergency contract to operate further services in North Rhine-Westphalia from February 2022 to run for two years.[95]
National Express Accessible Transport (Door-to-door transport service for anyone who lives in the urban areas of the West Midlands who find it difficult or impossible to use conventional public transport.)
USA and Canada
Bus
National Express Transit (transit and paratransit bus operation in the US, formed in 2012)
Suburban Paratransit (paratransit service in New York)
Total Transit (transit and paratransit service in Arizona)[99]
Trans Express (shuttle, charter, tour, and casino service in New York, acquired 2015)[100]
Trinity Transportation (charter and school service in Michigan, acquired 2017)[101]
White Plains Bus (charter service in New York)
In July 2014, National Express partners with Canadian-based online booking platform Busbud.[92]
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 Bahrain.[102]
National Express had a 17.5% shareholding in London & Continental Railways (L&CR) from its formation in September 1994 until it was nationalised by the Government of the United Kingdom in 2009. L&CR 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, L&CR's subsidiary Eurostar International from 1998 to 2010.[106][107]
Airports
In the 1990s, National Express moved into the privatisation of airports, purchasing East Midlands, Bournemouth, and Humberside Airports. 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.[108][109]
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.[111]
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