MV Transportation, Inc., announced it will begin operating more than 500 school bus routes next month for the New York City Department of Education after a U.S. Bankruptcy court approved the largest acquisition in the company’s 36-year history.
The $75 million deal to purchase USA United Fleet, Inc., finalized on Aug. 15 following approval by the U.S. Bankruptcy Court of the Eastern District of New York, allows MV Transportation’s newly created Reliant Transportation, Inc., to operate more than 500 routes utilizing a fleet of 600 school buses. MV Transportation inherited nearly 500 school buses from USA United and was adding another 100 vehicles, according to company President and COO Kevin Klika.
The service begins on Sept. 8, the first day of school.
USA United Fleet filed for chapter 11 on July 6 following an internal payroll embezzlement and ongoing issues in dealing with the local driver’s union, according to bankruptcy court records.
An MV Transportation spokesperson said the company had serviced school bus routes in the past but in recent years concentrated on providing fixed-route transit, para-transit and shuttle service. The company operates 130 locations in 26 states, including New York, where MV already provides “Access-A-Ride” services in the boroughs of Brooklyn, Harlem and Staten Island for the New York Metropolitan Transportation Authority.
“The job of transporting students is an extremely important responsibility,” said Klika, who is overseeing the operations for this start-up. “It is our goal to hire as many of the former company’s employees as possible. Their existing knowledge of the service and the passengers will help provide for the smoothest transition possible.”
He added that rehiring the 1,200 former unionized, USA United employees is pending criminal background checks, physical fitness re-certifications and alcohol and drug screenings.
Following the first year of contracted service for the NYC Department of Education, Klika said MV Transportation would consider expanding its school bus services into other markets nationwide.
