Stagecoach challenged over NY tour buses Stagecoach's domination of New York City's hop-on, hop-off tour bus market is being challenged by the US Department of Justice, which says the group broke the law in 2009 by forming a joint venture that runs at least nine in 10 of the city's double-decker sightseeing buses. The DoJ and New York's attorney-general filed a civil antitrust action this week against Twin America, a partnership between UK-listed Stagecoach and private tour operator City Sights, alleging an effective monopoly in the estimated $100m market. The two groups only sought approval for their joint venture after forming it, from the federal Surface Transportation Board. But the STB decided early this year that Twin America dominated the market, and gave the owners two options: break up or dispose of a small intercity coach division, removing the group from the national regulator's jurisdiction. Stagecoach and City Sights chose the latter option. The lawsuit against them, filed in New York on Tuesday, says: "As a result, [the] defendants continue to operate an illegal joint venture that has caused harm to consumers for more than three years," pointing to a 10 per cent rise in ticket prices. It is seeking a dissolution of the joint venture or the sale of assets "approximating the City Sights business that existed prior to the formation of the venture," said Stagecoach on Friday, adding that Twin America's owners would "robustly defend their position and will take all actions to protect their interests." It said price increases were due to higher costs, including for labour and petrol. The efficiencies achieved by the joint venture have enabled Twin America to respond with better value and service to its customers. While Stagecoach's 60 per cent share of the sightseeing business contributed just 2 per cent of group revenues last year, operating margins of 20 per cent meant the division's operating profits of $16m - or £10m, using the exchange rate on April 30, Stagecoach's year end - represented more than 4 per cent of the group total. The Twin America holding earned Stagecoach about £9m in profit after tax, compared with £16m from the group's 49 per cent stake in Virgin Rail, the operator of the West Coast main line in the UK.