Coach is dropping 20 NJ Transit bus routes in North Jersey

Coach USA informed NJ Transit it is preparing to prematurely terminate contracts it has with the agency for 20 bus routes in Bergen, Hudson and Passaic counties.

Coach is the Paramus-based transportation company with a national network of bus services that began Chapter 11 bankruptcy proceedings last month . Newel Scoon, one of Coach's regional vice presidents, wrote letters to NJ Transit on Wednesday 10 notifying the agency it is seeking "bankruptcy court approval to reject and terminate" its three agreements with NJ Transit on Aug. 16.

Coach sought to preserve as many of its bus services and jobs as possible by reaching asset purchase agreements with companies, including The Renco Group, Inc., which agreed to buy Rockland Coaches and Suburban Transit. Suburban operates 14 NJ Transit routes in Middlesex County and one in Union.

"We are working to transition service by August 16 and in the meantime, we are continuing to operate service on those routes," according to a Coach spokesperson. "We have been proactive in communicating with New Jersey Transit and other interested parties with respect to these lines and others that we are continuing to serve. We also continue to provide uninterrupted service across more than 50 other commuter routes in New Jersey and New York, this includes all services to / from points in New York and New Jersey to various points in Manhattan."

The company did not yet find buyers for the business units that held the contracts for Coach's contracted routes in Hudson, Bergen and Passaic counties.

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Here are the routes that would be impacted:

• Bergen : 751, 752, 753, 755, 756, 762, 772 and 780
• Passaic : 702, 705, 707, 709, 722, 744, 746, 748 and 758
• Hudson : 2, 84 and 88

NJ Transit awarded Hoboken-based Academy Express , LLC a contract to take over the Passaic routes Sept. 1.

The termination of the Coach agreements will undoubtedly leave NJ Transit in a difficult position as it will have to solve a number of logistical problems, including finding drivers, or seeking another private contractor, to take over those routes with just five weeks' notice.

As it is, NJ Transit is having trouble staffing its bus routes, with "bus operator availability" the most frequently cited reason for bus cancellations.

"This presents significant challenges for NJ Transit’s resources, given the ongoing and fierce competition for recruiting (commercially licensed) drivers from a limited pool of qualified candidates. We are exploring every available option to limit the impacts on bus service in the state," said Jim Smith, spokesman for NJ Transit.

More than 250 Coach employees will also lose their jobs because of these route terminations.

Coach hit by COVID ridership losses

Coach never fully recovered from the ridership losses it experienced after the COVID-19 pandemic. Signs of its distress began last year when it terminated service on three routes that served the Newark area and earlier this year didn't bid on a contract to continue operating NJ Transit's nine Passaic routes.

Private bus companies did not receive the same level of stimulus from state and federal governments that the public transportation and airline sectors did in the aftermath of the pandemic.

More than $120 billion was made available to public transportation agencies and airlines through three federal aid packages, but 1,300 bus companies had to apply for PPP loans or $2 billion in federal grant money available through the CERTS program.

Three other New Jersey bus companies ended commuter bus service earlier this year, citing similar financial challenges.

This article originally appeared on NorthJersey.com: Coach is dropping 20 NJ Transit bus routes in North Jersey