Inverness Traction Ltd, operating a fleet of leased minibuses and operating in parallel to Highland's Inverness network. Highland's response to the competition was fast and ferocious, cutting fare levels well below the competition and increasing traffic levels by 60%. Competition between the two operators was fierce and there was much ill will, with each operator accusing the other of unfair behaviour. Both companies suffered acute financial losses during the competition period, which ended when Inverness Traction went into receivership in April 1989. The services operated by Inverness Traction, and the minibus leases, were immediately taken up by an Aberdeen-based coach operator, Alexanders (North East) Ltd. However, the intense competition continued and Alexanders also fell into receivership in November 1989. After a brief interval, the assets and services of Inverness Traction were purchased by the Stagecoach Group. Highland, perhaps aware it could not sustain competition against a national operator with a reputation for swift and successful competition, scaled down the level of service against the new operator. Soon after, Stagecoach would purchase the Inverness and Tain operations of Highland Scottish and become the dominant operator of Inverness area services. In August 1991, Highland Scottish was sold to a consortium made up of Rapson's Coaches, a coach operator based near Inverness, and Clansman Travel and Leisure, the holding company for Scottish Citylink, which had recently been purchased from the Scottish Bus Group through a management and employee buyout, for £800,000. In March 1993, ownership of Highland Scottish passed wholly to Rapson's and a more modern deep red and cream livery, with a dark red wedge and yellow coachlines, was introduced for the fleet. The golden eagle emblem, once used by Highland Omnibuses, was reintroduced in a larger size toward the rear of the vehicle and the company traded simply as Highland. However, in October 1995, the company was split in two, with Rapson's retaining the eastern services under Highland Bus & Coach Ltd, with the remainder passed to a new company, Highland Country Buses Ltd. Highland Scottish Omnibuses at that time ceased to exist as a whole concern. Highland Scottish remains as the trading name of Inverness bus station. Successor companies Highland Country buses adopted a starkly different livery to the traditional red by going for a two-tone blue livery, with a large St Andrew's Cross in the centre of its 'Highland Country' logo. In January 1996 Highland Country Buses was bought