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Scottish Motor Traction -LRB- SMT -RRB- was founded in Edinburgh in 1905 .. It operated buses in much of central Scotland .. Aside from its traditional bus operations , it operated an air taxi service with a De Havilland Fox Moth between 18 July and 31 October 1932 and for many years owned Dryburgh Abbey Hotel .. De Havilland Fox Moth. De Havilland Fox Moth. Following legislation , which allowed railway companies to invest in bus operators , the LNER and LMSR took a major stake in SMT in 1929 .. In 1930 , following the takeover of another operator , SMT started its Edinburgh to London express coach service .. SMT also acquired control of Walter Alexander and Sons bus services and coachbuilding operations , the Alexander family joining the SMT board .. Walter Alexander and Sons. Walter Alexander and Sons. coachbuilding. coachbuilding. SMT grew partly through the acquisition of smaller companies .. Operations were decentralised to local areas , such as Central SMT in Lanarkshire , and Western SMT in south-west Scotland -LRB- both with red buses -RRB- , whilst the east of Scotland services operated as SMT -LRB- with green buses -RRB- .. Lanarkshire. Lanarkshire. Western SMT. Western SMT. Upon nationalisation of the SMT group 's bus and coach services by the Attlee government in 1949 , those of SMT itself were transferred to a new British Transport Commission subsidiary , Scottish Omnibuses Ltd. , which continued to operate as `` SMT '' until the early 1960s , when the fleet name `` Eastern Scottish '' was adopted .. Attlee. Clement Attlee. British Transport Commission. British Transport Commission. Scottish Omnibuses. Scottish Omnibuses. Eastern Scottish. Eastern Scottish. Meanwhile , the non bus operating activities remained in private hands as SMT Sales & Service Ltd. .. Following the demise of the British Transport Commission , the SMT operations became part of the state-owned Scottish Bus Group in 1962 ; this later became the Scottish Transport Group in 1969 following the addition of ferry services .. British Transport Commission. British Transport Commission. Scottish Bus Group. Scottish Bus Group. Scottish Transport Group. Scottish Transport Group. The Transport Act 1985 led to the deregulation of bus services across the UK , followed by privatisation of the bus-operating Scottish Transport Group subsidiaries .. Scottish Transport Group. Scottish Transport Group. Western Scottish -LRB- formerly Western SMT -RRB- was sold to its local management in 1991 , and was bought out by the Stagecoach Group in 1994 , which renamed it Stagecoach West Scotland .. Western SMT. Western SMT. Western Scottish. Western Scottish. Stagecoach Group. Stagecoach Group. Stagecoach West Scotland. Stagecoach West Scotland. The ferry services , run as Caledonian MacBrayne remain owned by the Scottish Government .. Caledonian MacBrayne. Caledonian MacBrayne. Following privatisation , Eastern Scottish briefly reverted to its former name SMT .. Eastern Scottish. Eastern Scottish. It was bought out by GRT Group in October 1994 .. GRT Group. GRT Group. In June 1995 GRT Group and Badgerline merged to create First Bus .. GRT Group. GRT Group. First Bus. FirstBus. Who went onto rebrand it First Edinburgh , and introduced its `` Barbie '' colour corporate pink , purple and white livery to replace the former green .. First Edinburgh. First Scotland East