In the United States, we have continued to replace older vehicles in our fleet with coaches that feature reduced emissions engines with the latest technology. During the year ended 30 April 2008, we replaced 40 motor coaches, 13 open-top sightseeing double deckers, and 35 school buses with new models, as well as introducing 17 double-decker coaches for our megabus.com operations in North America.

We are the first company in New York to ensure our vehicles can use low sulphur fuel, which significantly reduces emissions. We have also started a programme to install emissions particulate filters on our vehicles.

Our business also has an action plan in place to comply with Federal US Environmental Protection Agency (EPA) policies and procedures by creating Storm Water Pollution Prevention Plans and Spill Containment and Countermeasure Plans in all our operations in the United States.

We are taking part in a Smart Start energy conservation programme as well as rolling out the use of recycled water at bus washes in our depots.

In Canada, we have taken further steps to reduce direct emissions from our operations. As part of our compliance with engine emissions requirements under Ontario’s “Drive Clean” programme, we have increased the pass rate on first test from 93.5% to 99%. A total of 21 coaches were replaced with new vehicles, equipped with the latest engine technology, and all of our locations have converted to ultra-low sulphur diesel.

All of our Canadian facilities are equipped with a separator unit to filter the water from petroleum products before the water is sent into the water system. Sludge is removed by a contracted company certified by the Ministry of Environment. Each facility is also equipped with a spill kit to reduce any diesel fuel from entering the water system through a ditch or drain in the event of a spill. A programme is in place to recycle paper, cardboard, metal, waste oil, batteries and tyres.

The company has also recently adopted a wireless GPS system that provides valuable information to address unnecessary idling of buses. We are in the process of implementing a system to accurately track and record electricity and water use at our facilities as part of our drive to reduce our consumption levels.