Springfield, Mass.-based Peter Pan Bus Lines announced it is taking over all of the Megabus routes in the northeast and mid-Atlantic states.

With the new partnership, the company will now operate the routes 24/7, including service to Washington, D.C.; Baltimore; White Marsh, Md.; and Philadelphia, and connecting passengers to the 100 destinations Peter Pan already serves.

How the Partnership Came About

In June, Coach USA, operator of Megabus and other commuter bus lines in the U.S. and Canada, commenced voluntary Chapter 11 proceedings in the U.S. Bankruptcy Court for the District of Delaware to facilitate sale processes to preserve jobs, ensure continued service, and maximize the value of its businesses, according to the company.

As part of that process, Megabus is relinquishing service in the northeast and mid-Atlantic to Peter Pan.

“COVID has been difficult on the industry, in general, with about 40% of all bus companies not making it through the pandemic, and it was particularly tough on Coach USA,” Peter A. Picknelly, chairman and CEO at Peter Pan, told METRO Magazine. “As they emerge from the bankruptcy process, Coach USA is going to continue to operate as a charter carrier, providing commuter, airport, and shuttle services, but Peter Pan is going to take over the regular route service previously operated by Megabus.”

Picknelly added Megabus will continue to sell tickets into Peter Pan’s capacity as part of the agreement, and with the addition, the operator is more or less doubling its long-haul service.

The business relationship between the two operators began a few years ago when Peter Pan took over Megabus’ Boston to New York City service, setting the table for the expansion of work for Peter Pan.

Picknelly explained that the two operators have been working together in anticipation of the transition, which is set to take place August 16.

“The schedule product is a cooperative effort between Peter Pan and Megabus, so we’ve been working on this hand-in-hand along with our partner technical partner, Transcor Data Services, for about 90 days, if not longer,” he said.

Peter Pan Ramping Up Fleet, Drivers

In preparation for taking on the Megabus service, Peter Pan has reduced fares by close to 40%, hired 75 new drivers, and purchased 45 new buses.

The entire fleet of Peter Pan modern buses includes better-designed seats, video, and Wi-Fi.

The company has also relaunched its app, enabling passengers to easily book their trips in advance and feature its PERKs program, where users can earn free travel.

Despite those additions, though, Picknelly said taking on a new contract this large will have its challenges, particularly because it is Peter Pan’s busy season.

Also, while the operation is inheriting some Megabus drivers, it will take some time for the operation to get them up to speed.

“Onboarding new drivers is not an overnight thing, so it is going to take a couple of weeks to get our new drivers coming over from Megabus acclimated with Peter Pan’s vehicles, routes, and how we do things,” said Picknelly. “Because of that, it might be a little tight for a couple of weeks, but that’s not unexpected when you’re taking on a large service such as this.”

Overall, though, Picknelly said he is excited for the new service his company is taking on.

“It’s a great partnership that is obviously good for Peter Pan, but it is also good for the industry and especially the customers,” he said. “Though this partnership, the customers won’t be left behind and will continue to be able to book rides and utilize our services, hopefully even more easily than ever before.”

Impact on the Industry

With so much shrinkage and consolidation going on in the motorcoach industry, Picknelly discussed the impact of Peter Pan taking on the northeast and mid-Atlantic Megabus service.

“I think the future is bright for the bus industry,” he said. “Any shorter distance routes that are commuter related are still having a tough time because a fair amount of people are continuing to work remotely. Until that changes, commuter operations are going to continue to have a hard time, but the long-distance bus lines, like Peter Pan, we are doing very well, particularly in an economy where prices are so high.”

Picknelly added that he expects demand for long-distance motorcoach services to remain high as consumers continue to weigh their travel options.

“People still want to travel today, but they are looking for an option to get where they want to go quickly and affordably and that is exactly what buses can offer,” he said. “Also, for the environmentally conscious, the frequencies and the passenger miles saved through motorcoach travel simply can’t be beat.”