SBF 70 years logo
MenuMENU
SearchSEARCH

Atlantic Express files for bankruptcy

The school bus contractor cites a union battle, bidding issues and challenging earnings as key factors. The company will continue normal operations during the Chapter 11 process.

Thomas McMahon
Thomas McMahonExecutive Editor
November 5, 2013
Atlantic Express files for bankruptcy

Atlantic Express has operations in New York, Massachusetts, California and Pennsylvania, with a total of more than 5,000 school buses.

2 min to read


STATEN ISLAND, N.Y. — A union battle, bidding issues and challenging earnings are key factors in school bus contractor Atlantic Express Transportation Corp.’s filing for bankruptcy, company officials said on Monday.

With a fleet of more than 5,000 school buses, Atlantic Express is the fourth-largest contractor in North America. The company has operations in New York, Massachusetts, California and Pennsylvania.

Ad Loading...

Atlantic Express and its subsidiaries filed voluntary petitions for debt relief under Chapter 11 of the U.S. Bankruptcy Code. Officials said that during the Chapter 11 process, the company will continue normal operations and will “remain committed to providing its customers and passengers with safe, reliable and timely student and commuter transportation service.“

Officials said that Atlantic Express intends to use the Chapter 11 process to explore the availability of additional debt or equity financing, market its assets for sale, and continue what they described as “challenging labor negotiations” for a new collective bargaining agreement with Local 1181-1061, Amalgamated Transit Union, AFL-CIO.

“Quite simply, our current business model in our largest market, New York City, is not sustainable as union labor costs and operating expenses have severely hindered our ability to remain competitive and meet our financial obligations,” said David Carpenter, president and CEO of Atlantic Express. “Following a lengthy review process, and with the assistance of independent financial and legal advisors, our board of directors determined that a court-supervised process is the only feasible course of action.”

Atlantic Express announced Carpenter’s appointment as president and CEO this summer. He succeeded Domenic Gatto, the company’s founder and long-serving CEO and president, who last year announced his plans to retire.

Atlantic Express has filed a series of customary motions in bankruptcy court seeking to ensure the continuation of normal operations. This includes requesting court approval for debtor-in-possession financing and the use of cash collateral, the continuation of its cash management system and other business operations without interruption, and the payment of employee wages and benefits.

Ad Loading...

Also, Atlantic Express has filed a motion seeking approval of bidding procedures and authorization to sell some or all of its assets in December if the company is unable to reach an agreement with Local 1181 on a new collective bargaining agreement and to obtain additional financing.

More Management

Thumbnail graphic for a School Bus Fleet video compilation. A yellow electric school bus serves as the background, with speech bubbles containing words such as “Dynamic,” “Green,” “Critical,” “Complex,” “Family,” and “Underfunded.” A red banner reads, “12 Suppliers. 1 Question. Many Answers.” The video explores how industry suppliers describe the current state of the school bus market.
Managementby Amanda HuggettJune 5, 2026

13 Industry Leaders Describe School Transportation in One Word

What word best describes the school bus industry today? We posed that question to over a dozen manufacturers, resulting in a revealing mix of perspectives on the challenges and opportunities ahead.

Read More →
Leadership update graphic announcing executive appointments at Tyler Technologies. Headshots of Ryan O’Connor, named chief transactions officer, and Franklin Williams, named chief AI officer, appear alongside the Tyler Technologies logo and School Bus Fleet branding.
Managementby News/Media ReleaseJune 5, 2026

Tyler Technologies Adds New AI, Transactions Leadership Roles

Two company executives are promoted to newly created C-suite positions to accelerate the company's long-term growth in both artificial intelligence and payments.

Read More →
An orange and white graphic with Pro-Vision and Convoy Technologies logos, and text reading "Pro-Vision Acquires Convoy Technologies."
Managementby News/Media ReleaseJune 4, 2026

Pro-Vision Acquires Convoy Technologies

The deal aims to broaden customer relationships and adds specialized vehicle video capabilities for commercial fleets.

Read More →
Ad Loading...
A Durham School Services bus with two people posing in front of it.

Durham School Services Maintenance Teams Earn Missouri Fleet Excellence Awards

Eight of the contractor’s school bus fleets achieved a distinction few maintenance teams earn during the state’s rigorous annual inspection program.

Read More →
Joe Annotti of TRC Companies speaks at ACT Expo. A text overlay reads, “School Buses as Money Makers?” highlighting discussion about electrification, vehicle-to-grid technology, and new revenue opportunities for school bus fleets.
Managementby Amanda HuggettJune 3, 2026

How Incentives, AI, and Energy Markets Are Reshaping School Transportation

Sit down with Joe Annotti of TRC Companies to talk district grant funding, utility challenges, AI, and why school buses are evolving from transportation assets into energy assets.

Read More →
A lineup of Beacon Mobility school buses with text reading "Behind the Contracting Shift."
Managementby Elora HaynesJune 3, 2026

Inside the Contracting Shift: What School Transportation Operators Are Seeing Now

School transportation contractors weigh in on recent trends, costs, driver shortages, and the rise of multimodal student transportation.

Read More →
Ad Loading...
Jeff Weiss of ExoAir Systems stands beside a roof-mounted electric air conditioning unit at ACT Expo. Text overlay reads “ExoAir: Cool Bus. No Idling.”
Managementby Amanda HuggettJune 2, 2026

The No-Idling School Bus AC System

Take a peek at ExoAir Systems’ battery-powered cooling solution designed to run for up to 10 hours without the engine on, reducing fuel use and improving comfort for drivers and students.

Read More →
Charlotte Argue of Geotab speaks at ACT Expo, gesturing toward a display of telematics and camera technology. Text overlay reads “Geotab: Data Drives Safety.”
Managementby Amanda HuggettJune 2, 2026

Geotab on Three Major Trends in School Transportation

School bus fleets are becoming more proactive than ever. From AI driver alerts to vehicle-to-grid opportunities, Geotab outlines the biggest technology trends transforming school bus operations.

Read More →
Graphic announcing Gatekeeper contract news featuring a yellow school bus driving along a waterfront roadway, with “New Contract Announcements” text and Gatekeeper branding displayed prominently.
Managementby News/Media ReleaseJune 1, 2026

Gatekeeper Lands Major School Bus Deals as Revenue Surges

The video solutions provider announces contracts with Atlanta Public Schools and other fleet operators as it records quarterly revenue growth and expanding subscription business.

Read More →
Ad Loading...
Graphic promoting “Building a Mentorship Program” with two women shaking hands across a desk, highlighting tips and common mentorship mistakes in school transportation.
ManagementJune 1, 2026

Building Leaders Who Last: Creating a Successful Mentorship Program in Student Transportation

Discover five strategies for building an effective mentorship program to strengthen leadership development and support staff retention.

Read More →