The founder and managing director of Aircoach, John O'Sullivan, has left the company almost two years after selling his business to a UK bus operator.
Mr O'Sullivan plans to concentrate on other projects, including his Quick Park facility near Dublin airport. He will be replaced by Mark Reddy, an executive from First Group, the largest bus operator in the UK.
First Group purchased Aircoach back in November 2003 in a deal valued at the time at €15 million. A large portion of this was used to wipe out the debts of Aircoach, but it is believed Mr O'Sullivan made about €7 million on the transaction.
At the time of the transaction, First Group said that it was encouraged by moves towards liberalisation of the Irish bus market.
"The positive direction taken by the Department of Transport towards the introduction of competition in road passenger services attracted First Group to look at the Irish market. Aircoach provides an ideal platform," it said at the time.
However, since then, the pace of change has been slow and, while Aircoach has added some new routes, the vast majority of routes in Dublin remain in the hands of Dublin Bus.
It is understood that Mr O'Sullivan and First Group have been frustrated by the lack of progress in opening up existing routes to competition.
The previous minister for transport, Séamus Brennan, was a firm supporter of liberalisation, but his successor, Martin Cullen, has not published any plans for opening up the market.
However, he is working on a new structure for the sector and this may include franchising out certain routes following a public tender.
Aircoach has been hit by disruptions to its Dublin-Belfast route in recent weeks because of riots in Belfast. It also recently announced that it was ceasing its Dublin to Portlaoise service.
Mr O'Sullivan retained about 10 per cent of his shares in Aircoach following the sale to First Group. It is understood that these have now been sold for an undisclosed sum.
Mr O'Sullivan, who lives in the Curragh, Co Kildare, previously worked as an engineer with Bus Éireann.
He set up Aircoach in 1998 and faced serious opposition when he first started operating to the airport. Some taxi drivers protested to Aer Rianta and there were also some difficulties with some Dublin Bus drivers.
The company behind Aircoach, Last Passive Limited, had turnover of €5.4 million in the period between August 1st 2003 and March 2004, with operating profits in this period of €236,714.
