Grounds for reference of Stagecoach/Scottish Citylink

OFT decision (19 pages, PDF) to refer the Stagecoach/Scottish Citylink joint venture for express coach services in Scotland to the Competition Commission. The decision was announced on 15 March 2006.

Overlap flows of concern to the OFT included Glasgow-Edinburgh and several flows on Glasgow-Aberdeen and Edinburgh-Inverness, and the OFT thought that "rail provides a relatively loose constraint on coach travel" because of the differences in speed and fares between rail and coach services. The OFT also rejected a form of failing firm argument, finding that Citylink could have continued to compete effectively. It also considered that the joint venture would be largely controlled by Stagecoach and that overlaps with Stagecoach's other bus/coach services may be relevant. The Competition Commission has a dedicated page for this inquiry.

For further information or advice please contact Franck Latrémolière.

Filed under Merger control, OFT, Public transport.

Reckon LLP is an economics consultancy with expertise in data analysis, economic regulation and competition law.

About Reckon