Citylink Complete Acquisition of GoBus

Wow, that is very big news!

I've mixed emotions on it. It is always sad to see an Irish family run business get swallowed up by the a big multinational.

I was pretty critical of GoBus's launch in Cork and the multiple mistakes they made during the first few years, but fair play to them over the latter few years they had corrected most of those mistakes and I had pretty much completely moved over from using Aircoach to using GoBus to Cork. That had become a pretty decent service.

But if anyone is going to buy GoBus, from the Cork perspective I'm delighted that it is Citylink. I've always felt that Citylink were by far the best intercity coach operator in Ireland, a big step up from all the others. Every time I'd go to Galway on the lovely Vanhool overdeckers it has been an absolute pleasure.

I'd assume they will continue to use the Volvo's to Cork, but in time I'd love to see some Vanhools on the route. They could be serious competition for Aircoach and Irish Rail. The Gobus service already felt like a slight step above Aircoach, but if Citylink eventually bring Vanhools to the table, it would be a big step up and serious competition.

At least I'm glad it isn't Dublin Coach or Aircoach (in terms of reduced options to Cork).

Of course that brings us to the downside of this deal, the big reduction in competition to Galway. I'd hope the competition authority would require them to give up one of the licenses for the Galway route then.

Who would go for that route? Devnull already mentioned BE and that makes sense given their existing presence on the route. On the other hand, it feels like BE aren't really interested in Expressway any more, it feels like they are largely shrinking it and refocusing on PSO services instead. I wouldn't be at all surprised if BE spilt Expressway off and sold it off to a private operator. But I could be totally wrong about that, just a gut feeling.

Aircoach might be interested. About 6 months ago the CEO of Aircoach had an interview in one of the papers. She said she expected mergers to happen and Aircoach were keen to jump on good deals and expand. Adding Galway to their network would greatly strengthen their network.

Then of course there is Dublin Coach, I hope not.

But that brings up an interesting point, what about Dublin Coach? They most be an obvious target for take over too. They seemed to be struggling for cash before covid and the owners game plan normally seems to be sell out to a big multinational. So could DC be on the bidding block too?

DC's network would be a great fit for either Citylink or Aircoach.

Citylink, while they already have a service from Limerick to Dublin Airport, there is the obvious gap of no service to Dublin city, buying DC would fill that nicely and they would also gain a Belfast and Waterford service. Between Gobus and DC, Citylink would end up with a complete network to every city in Ireland!!

Likewise, Airchach would benefit buying DC by eliminating a competitor on the Belfast route and adding Limerick and Waterford to their network, giving them almost a complete network too.

Either of the above would leave them in a powerful spot. Of course there is always other possible players and maybe DC are fine.

Just some speculation on my part.

Oh and yes the Cork - Limerick - Galway service will be in a nice spot for Citylink when the M20 is done.

Articles here, but require subscription:

https://www.thetimes.co.uk/article/citylink-plans-to-overtake-rival-operator-gobus-tqwlxgqz3

https://www.businesspost.ie/companies/citylink-bids-for-gobus-on-behalf-of-transport-giant-db2c426e

And confirmation that the CCPC is reviewing the deal here, looks pretty firm to me if approved:
https://www.ccpc.ie/business/mergers-acquisitions/merger-notifications/m-21-009-citylink-gobus/

devnull wrote: »

Therefore it is hard to understand how Aircoach would have already been granted a license because it would go against all precedent to issue a third express license on that corridor and GoBus or CityLink are not going to sell a license before the takeover has gone through and if they had already sold one of them, they wouldn't still be operating as they'd no longer have a license to do so.

What I have heard is there may have been discussions about another operator (name was not mentioned) taking over one of the licenses should the takeover be rubber stamped and this measure be required to push it through. The two companies involved in this takeover/merger may have proactively suggested this as a remedy as they knew it would be a problem for the CCPC and may already have a buyer lined up.

During mergers where they are likely to be monopoly concerns it isn't unusual at all for the company doing the taking over to come to an agreement with a third company to take over the parts that would cause concern (for a price obviously) before the merger happens and to include that in the merger proposal. This way they can avoid any delays in the merger and ensure it gets quick approval.

It is very common and I can think of many examples.

Another possibility is that GoBus sold that two licenses separately. The Galway to Aircoach and the Cork one to Citylink.

Maybe Aircoach were actually the first movers here? Maybe they bought the Galway license and Citylink responded by buying GoBus to get the remaining Cork license to fight back?

Of course that isn't to say that any of this is true, I don't have any inside knowledge. Just that it wouldn't be surprising if true. Competition authority tend to take this sort of stuff seriously.

Jamie2k9 wrote: »

Is there a particular reason why the NTA would prefer 2 private operators on the route. I don't buy the whole competition argument on a city pair like this. Just look at BE scrapping most express services.

The BE Expressway licenses were different, they were stopping licenses, rather then non stop direct and mostly they pre-dated the NTA forming.

Also BE has only scrapped a small number of Expressway routes, they still have many.

devnull wrote: »

Part of that involves ensuring that there are not too many operators on a route. The NTA has been consistent in applying two operators per corridor (Express and Multistop are considered separate) and I've seen nothing to suggest that their opinion in that regard has changed whatsoever and no license was issued up to 21st February as publicly published NTA documents prove this.

It sounds like it could be a semi-express service, if truly just Galway - Athlone - Maynooth - Dublin, it could fall between both the existing Express and multi-stop services and might get a license on that basis?

And if it skips Dublin and goes straight to Dublin Airport, even more different, more like Eireagle.

Might explain partly why GoBus have decided to sell up.

Having said this, I'm surprised that Aircoach would start a service like this to Galway where there is so much competition already, rather then say Limerick which could do with more options.Though perhaps Athlone and Maynooth are the real draw here for Aircoach.

Of course all just speculation on my part.

Mrs OBumble wrote: »

Limerick to Dublin has JJ Kavanagh, Dublin Coach and CityLink. And not so many tourists.

Sure, but that is still less competition on either the Cork, Galway or Belfast route.

Dublin Coach is the only somewhat direct service on this corridor, while Cork has Aircoach/Gobus, Galway Citylink/Gobus, Belfast Dublin Coach/Aircoach

JJ Kavangh is a mutlistop service, Citylink is Eireagle and thus skips Dublin City and heads direct to the airport.

Even Dublin Coach isn't a true non-stop service like Galway/Cork have. It is a limited stop, semi-express service, stopping at Annacotty, Kildare Village and Red Cow.

I'd feel like there is a very obvious gap in this corridor for a true non-stop express service doing Limerick - Dublin City (and maybe Dublin Airport).

Seen how overcrowded DC coaches often seem to be. A direct non stop service (at least from UL) that took 15 or 20 minutes off DC could make a killing IMO.

But I take your point on Galway having a lot more tourists. But wouldn't tourists heading to Galway, just take the faster direct Citylink/GoBus services versus this possible new Aircoach stopping service?

Mrs OBumble wrote: »

Personally I think a bus from Galway stopping in Maynooth could be handy, it's a difficult spot to get to unless you want to pay train fares.

Very true.