MegaBus Bankruptcy – Texas Service Ends

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. 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.

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. From Daily Mail.