A NEW express bus service between Belfast and Derry in direct competition to Translink - and in turn linking the north west directly with Glasgow - has moved a step closer after an apparent climbdown by the Department of Infrastructure.
The Hannon Transport Group in Aghalee, which operates Hannon Coaches, made an application to the Department last May for a commercial bus service permit to operate an express service between the Derry and Europa bus stations.
This, said Hannon, was because it had firm evidence of demand and "sound transport economics and direct expertise" from Westminster College in London, which claimed that such an express service would stimulate passenger and tourism demand.
In July, however, the Department refused the licence, claiming that the high level of existing service, especially at peak rush hour periods, meant the route was already adequately and economically served, and also that it would have a "negative impact on current Translink services".
But Hannon, which has invested millions in a fleet of ultra-modern coaches, challenged the refusal on a number of areas, including the fact that the Translink service didn't meet the criteria of "express".
Regulations state that on an express service each passenger journey must include a ‘closed door’ element, which is not less than 30 miles taking the most direct route by road, during which passengers must not be picked up or set down - whereas the Belfast-Derry service stops at a number of towns including Toomebridge, Castledawson, Maghera and Dungiven.
The Irish News understands that Hannon was on the verge of mounting a robust legal challenge, and had informed the department of its intentions.
But it emerged yesterday that an agreement seems to have been made which will effectively quash the original refusal, and it is thought the department is set to issue a fresh ruling on the Hannon application.
Nobody from the department was available at the time of going to press to comment on any likely changes.
But Hannon Coaches marketing manager Owen McLaughlin said: "We're hopeful this paves the way for us to finally get the green light to run our modern non-stop express service between the north's two biggest cities,"
"We have set aside millions of pounds for this particular service, which would have created around 15 jobs and opened up a whole new tourism route."
Last summer the bus company - which was only formally incorporated as a subsidiary of the family-run Hannon Transport Group in December 2016 -signed a three-year deal with The Odyssey Trust to become the official coach partner to the SSE Arena, the Belfast Giants and W5.
The Hannon fleet has already swollen to 28 full-size coaches, and in January it launched a twice-daily £29-each-way direct service between Belfast and Glasgow via the Stena Line ferry, backed up with a major marketing and advertising campaign.
"We originally wanted it to run this three times a day, but the Derry decision has put the brakes on that at least for the moment," Mr McLaughlin said.
"It's early days on that service, but already we've had US tourists wanting to book through from Glasgow to Derry, and we've had to tell them that's not yet possible until we get a definitive ruling from the department."
He added: "We believe the people and businesses of Derry will benefit to the tune of close to £3.5m a year just by us providing this express service, and our £4 million investment will bring at least 15 jobs."
The proposed new express service would run 19 times a day in each direction Monday to Friday and be scaled down to 10 and nine respectively on Saturday and Sunday.
Translink current operates 39 Goldline services from Foyle Street to Belfast each weekday, 37 from Belfast to Derry Monday to Thursday and 46 on Friday to cater for extra demand for students.
On Saturday it operates 26 buses from Derry to Belfast and 27 in the other direction, while on Sunday there 23 from Derry and 22 from Belfast.
Hannon Coaches is part of the Hannon Transport Group, which in the year to January 2017 say its sales increase from £21.4m to £27.4m while its bottom line profits doubled from £685,000 to £1.3m.