SCOTTISH Citylink, the joint venture between Perth-based transport giant Stagecoach and Spain's ComfortDelGro, yesterday said it would spend more than £4 million on 23 new coaches for its network of journeys across Scotland.

Around £1.6m of the £4m-plus investment has been put up by Argyll-based West Coast Motors, which three years ago had been in dispute with Stagecoach, its current partner.

Back in 2008, the bus war was sparked in rural Scotland when West Coast Motors refused to sign a new contract with the giant Citylink to operate its Highland network, ending a partnership which began in 1986.

The disagreement centered around the contract price, which had been driven down, against the background of fuel price pressures.

At the time, Colin Craig, managing director of West Coast Motors, said the situation was “very surprising and very disappointing”.

However, the dispute ended after two months.

Mr Craig yesterday told The Herald: “Part of the agreement was that we operate the service on behalf of Citylink with our branding.

“It was a very short-lived dispute. It only lasted about two months and I would say that it was very much a catalyst for our current relationship.”

Part of the terms of the current agreement involves West Coast Motors investing in the fleet but also getting paid a mileage rate by Citylink.

West Coast Motors’ £1.6m investment means bus passengers between Glasgow and Campbeltown are to benefit from five new coaches – sporting joint Citylink and West Coast Motors livery – upping the service from three to five return daily return journeys.

Two further coach services for Citylink’s Glasgow to Oban are to be delivered to West Coast Motor by the end of the year.

The new fleet was launched by Mr Craig and Sir Brian Souter, chief executive of Stagecoach, at Inveraray Castle.

A spokeswoman for Citylink said 16 of these 23 new coaches have been purchased from Plaxton, part of Alexander Dennis, the Falkirk-based coachbuilder rescued from the brink of collapse in 2005 by a group Scottish businessmen, including Sir Brian.

By the end of 2011, the average age of vehicles across the Citylink network will be reduced to four years.

Sir Brian added: “This service offers customers good value, high-quality travel and its popularity has shown that the bus can be an affordable and reliable alternative to the car.

“By introducing these new vehicles we hope to attract even more people on to our greener, smarter services.”