Perth public transport group Stagecoach has confirmed a $10.5 million expansion of its North American megabus fleet.
The firm said its budget transport brand had ordered 15 new Van Hool TD 925 vehicles as it continued to grow its inter-city route network in the region.
The company has created more than 1,000 jobs since first establishing megabus in the United States seven years ago.
The firm now operates in more than 30 states, and two provinces in Canada, serving more than 120 destinations and carrying around 10 million passengers per year.
Stagecoach Group reported last month that revenue from megabus operations in North America had increased by more than 22% to $90.8m in the six months to the end of October last year.
However, it also warned that the cost of new vehicles and establishing additional routes was likely to temper the rate of operating profit growth in the North American division in financial year 2014/15.
Dale Moser, megabus.com president and chief operating officer, yesterday said the company was having success in persuading people to opt for bus travel.
“These new state-of-the-art coaches are part of our exciting expansion plans for 2014 and will help bring safe, high-quality and affordable travel to more people in North America,” he added.
The investment comes as research revealed travellers in the US saved $1.1 billion last year by using inter-city bus operators rather travelling by train or plane.