Stagecoach Holdings plc and Formia

1. Title of report: Stagecoach (Holdings) Ltd and Formia Ltd (MMC - Cm 1382)

2. Date of report: 11 September 1990 Published: 20 December 1990

3. Orders: N/A

4. Date of original undertakings: 28 May 1993

5. Companies giving undertakings: Stagecoach Holdings plc

6. Details of undertakings: Behavioural undertakings

(i) To supply to the Director General East Sussex County Council ('the Council') and the National Federation of Bus Users certain financial, mileage and statistical information relating to the Hastings profit centre of Stagecoach South Coast Buses.

(ii) If other than as a seasonal or routine adjustment, Stagecoach reduces the fares which it charges on any route within the districts of Hastings Eastbourne and Rother below the fares charged by another supplier, and that other supplier ceases to supply, or announces that it intends to cease to supply services on that route, then for one year Stagecoach will not without the consent of the Director General increase the fares which it charges on that route by more than the percentage increase in the general index of retail prices.

(iii) If other than as a seasonal or routine adjustment, Stagecoach increases the frequency of its service on any route within the districts of Hastings, Eastbourne and Rother, and another supplier of bus services ceases to supply, or announces that it intends to cease to supply services on that route, then for one year Stagecoach will not without the consent of the Director General reduce the frequency of the service below the level of service supplied according to the previous timetable.

(iv) Stagecoach will give the Director General at least 30 days notice before it:

(a) acquires the whole or part of the undertaking or assets of a business, body corporate or enterprise which operates a local bus service from a depot within the county of East Sussex, the county of West Sussex other than Crawley, and the districts of Ashford, Shepway and Tunbridge Wells in the county of Kent;

(b) does anything which may have the result that two or more such bodies corporate become interconnected bodies corporate; or

(c) does anything which may have the result that two or more such enterprises cease to be distinct.

(vii) Where Stagecoach submits a tender for a subsidised service in Hastings or the Bexhill area of Rother District and the contract for this service is awarded to another operator, then Stagecoach will not register a bus service which substantially duplicates such subsidised service without first obtaining the consent of the Director General.

(viii) The price quoted by Stagecoach in each such tender will not exceed 120 per cent of expected direct costs less revenue.

7. Date of amendments: N/A

8. SIC code: 60.21/2 (Bus services)

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