County Officials Comment on Coach USA Route Terminations

PARAMUS, NJ - Coach USA, based locally, has terminated its agreement with NJ Transit, according to county officials, which they say will "prematurely" cut 20 bus routes and will likely impact students and staff commuting to Bergen Community College.

On June 11, 2024, the bus company announced the beginning of "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."

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County Executive Jim Tedesco and County Commissioner Chairwoman Germaine Ortiz issued the following statement in response to reports that Coach USA will "prematurely terminate contracts it has with the agency for 20 bus routes in Bergen, Hudson and Passaic counties:

“I am deeply concerned over recent reports that Coach USA will prematurely terminate their agreement with NJ Transit, leaving the operation of several Bergen County bus routes in question,” Tedesco said. “This sudden and inadequate notice from Coach USA is unacceptable and will significantly impact our residents, particularly those who rely on these routes for their daily commutes to work and school.”

Tedesco continued, “The fact of the matter is, we need more opportunities for mass transit, not less! I urgently call upon NJ Transit to take immediate action to ensure a smooth transition for Bergen County commuters by either finding a new service provider or assuming the operation of the impacted Bergen County routes themselves. It is critical to ensure that our residents, especially the hundreds of students and staff commuting to Bergen Community College, do not experience any disruption in their transportation services. Reliable public transportation is essential for the well-being and economic vitality of our community, and I am confident that NJ Transit understands the importance of these routes and will work swiftly to address this urgent matter.”

As part of the court-supervised sale processes, according to news from the company:

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• Entered an asset purchase agreement with an affiliate of The Renco Group, Inc., Bus Company Holdings US, LLC (“BCH US”), for certain of the company’s bus lines – Dillon’s, Elko, Megabus Retail, Montreal, Olympia, Trentway/Ontario (including Megabus Canada), Perfect Body, Rockland, Shortline (including Chenango Valley Bus Lines), Suburban, Van Galder and Wisconsin Coach – as well as certain assets of Community Coach. The existing Megabus intellectual property and retail operations will also be part of the transaction. U.S. Megabus operations will continue while the company pursues an ongoing transition to the existing partnership business model.
• Entered asset purchase agreements with affiliates of AVALON Transportation, LLC, (“Avalon”) for several of the company’s bus lines: Lenzner, Kerrville, All West and ACL Atlanta.

Coach USA promised the following: "Taken together, once completed, these proposed transactions will preserve thousands of jobs and ensure uninterrupted passenger transportation services to millions of passengers throughout the United States and Canada, many of whom rely on the Coach USA transportation network."

While the company said it is "operating as normal and remains focused on operating safely and serving customers in the United States and Canada," county officials have their doubts in the part of the world.

“It is truly disheartening to hear that numerous bus routes in Bergen County will be affected by Coach USA ending their contract with NJ Transit,” said Commissioner Chairwoman Germaine Ortiz. “Reliable public transit is crucial for the stability and prosperity of our county and this sudden decision will drastically inconvenience our residents, especially those who rely on these buses for their daily commutes. It is imperative that NJ Transit acts swiftly to maintain uninterrupted transportation and minimize the impact on our community.

Coach USA said it has faced "significant challenges" since COVID, "as ridership and demand in the industry have remained well-below pre-pandemic levels."

Paramus-Based Coach USA Bus Service Discontinuing Several Routes

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