The country’s largest private bus company has made major changes to its routes that could leave millions of people stranded.
Megabus, which serves 500 cities across the United States, has pulled all of its routes in Texas, among other states, as its parent company goes through bankruptcy.
The budget travel company suspended its routes that once ran between Dallas, Austin, San Antonio and Houston on August 16. According to a statement.
The company, which has been operating since 2006, has also suspended its routes between Atlanta, Charlotte, Durham, Richmond and Washington DC.
Ticket holders have been informed and refunds have been sent, the statement said.
The country’s largest private bus company has made major changes to its routes
Some other popular Megabus routes have been transferred to other companies.
These include the route between New York, Baltimore, Philadelphia and Washington DC, which will now be operated 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 who booked travel on either route on or before August 15 will receive email instructions from Megabus on how to rebook.
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 the slow recovery from the pandemic.
Megabus became a hit selling tickets for $1, but ridership fell during the pandemic
Megabus covers more than 500 cities across the United States
Passenger levels have recovered from 2020 lows but were still only 45 percent of pre-pandemic levels in 2023.
The company filed for Chapter 11 bankruptcy in Delaware, seeking to sell its assets and shed debt incurred in an ill-timed private equity buyout in 2019.
It was acquired by private equity firm Variant Equity Advisors for $270 million, using mostly debt still on the company’s books.
Coach quickly struggled to pay off its debt as the pandemic caused bus ridership to decline by 90 percent between 2019 and 2020, according to its bankruptcy filing.
The company has faced higher interest rates and rising costs for basic needs such as employee retention and fuel, he said.
Coach USA operates 27 locations in the United States and Canada, employs 2,700 people, operates 2,070 buses, and transports 38 million passengers annually.
The company operates several other bus brands in addition to Coach and Megabus, including Dillon’s Bus Company and Go Van Galder.