STI subsidiary takes over Atlantic Express’ California operations
Student Transportation Inc. (STI)’s SchoolWheels Direct will manage the California school transportation business of Atlantic Express until an asset purchase agreement is closed. Under the court-approved asset purchase agreement, Student Transportation of America (another STI subsidiary) may purchase Atlantic Express’ California assets, contingent on receiving various school district consents and final negotiations.
Student Transportation Inc. (STI) subsidiary SchoolWheels Direct Inc. is now managing school bus contractor Atlantic Express’ California operations.
Under a management services agreement that began last Friday, SchoolWheels Direct will provide all of the management and other necessary services to maintain Atlantic Express’ existing school transportation business in California.
In early November, Atlantic Express announced that it had filed for bankruptcy, citing its union battle, bidding issues and challenging earnings as key factors. On Dec. 4, when unionized drivers in New York City voted down a new contract offer from Atlantic Express, the company announced that it would shut down and sell its assets and contracts.
According to last week’s SchoolWheels Direct announcement, Atlantic Express now has 425 school vehicles and school transportation contracts and operations with Los Angeles Unified School District (USD) and Long Beach USD, as well as many private and charter schools in Southern California.
STI subsidiary Student Transportation of America (STA) has been providing school transportation throughout California since 1997 and has been servicing Los Angeles USD for the past four years.
Atlantic Express’ management services agreement with SchoolWheels Direct has been approved by a bankruptcy court and Atlantic Express’ debtors, who are selling various assets in several states.
SchoolWheels Direct will manage only the California operations of Atlantic Express and will receive a management fee through the operations of that business until an asset purchase agreement is closed.
Under the asset purchase agreement, which has also been approved by the court, STA may purchase the California assets of Atlantic Express, including vehicles and school contracts, contingent on receiving various school district consents and the conclusion of final negotiations between the Atlantic Express debtors and other creditors allowing for the free and clear transfer of the vehicles to STA.
"Atlantic Express has a very good service reputation in California, and we are pleased that our company, SchoolWheels Direct Inc., has been chosen by the court and the debtors to operate and manage the California business until such time negotiations are final on the purchase of the vehicles and suitable arrangements for a seamless transition can take place," said Denis Gallagher, CEO of STI. "We would hope to transfer the business to our local operating subsidiary by the end of March; however, it could be much sooner.”
Gallagher added that the SchoolWheels Direct business “has been growing in many states with various transportation and management services contracts. Our history and expertise in the industry is what the court and Atlantic Express' debtors were seeking to ensure customers and employees [that] there would be continuity in service without disruption."
More Management

Changing Lanes: AMF Bruns, Pro-Vision, CALSTART, HopSkipDrive, & Kooner
Check out who's been hired, promoted, and appointed to leadership positions at various school transportation industry suppliers and nonprofits.
Read More →
NCST Announces 18th Congress Event Dates, New Committees
The National Congress on School Transportation moves to St. Louis in May 2029, convening delegates and industry representatives to discuss new best practice recommendations. Now, the new committee chairs have been named.
Read More →
Key Moments from the 2026 NSTA Annual Meeting in the Mile High City
From federal policy updates and OEM presentations to speed networking and industry awards, see photos and highlights from the contractor association’s summer conference in Denver.
Read More →
HopSkipDrive Launches Spanish-Language App Update, Plans Additional Language Support
The update aims to improve communication with multilingual families by offering ride tracking, notifications, and support in Spanish, with more languages planned for the 2026-2027 school year.
Read More →
Where the Yellow Bus Takes Us: School Bus Fleet's 2026 Photo of the Year Winners
See the winning photos from School Bus Fleet's 2026 Photo of the Year contest, featuring stunning school bus images from across the U.S., from scenic landscapes to everyday moments.
Read More →
Why Emotional Intelligence Matters in Student Transportation
Learn the five key elements that bus drivers and transportation directors can use to stay calm in any situation.
Read More →
2026 Back-To-School Readiness Report
Staffing gaps, flat budgets, and the distance between “mostly prepared” and ready for the 2026-2027 school year.
Read More →
National School Transportation Association Presents 2026 Award Winners
Twenty-one individuals and contractor companies were recognized for excellence in student transportation at NSTA's annual meeting and convention in Denver.
Read More →
School Transportation Data Is Only as Powerful as the Story It Tells
Leaders say turning operational metrics into student-centered narratives can help districts justify investments and improve service.
Read More →
Photos: NYAPT Celebrates 50 Years at 2026 Conference & Trade Show
See highlights from NYAPT's 50th anniversary conference in Saratoga Springs, featuring educational sessions, awards, a trade show, networking, and more.
Read More →

