The Passenger Transport Executive (PTE) bus operations were the bus operating divisions of the passenger transport executives in the United Kingdom. In 1986 they underwent a process of deregulation and privatisation, forming some of the largest private bus companies in the UK outside London, with all being sold to their employees or management. Despite their relative size and lucrative operating areas, none of the companies survived beyond the late 1990s, with all falling into the hands of the major bus groups, who had their origins in privatised regional subsidiaries of the former National Bus Company and the Scottish Bus Group. Background The first passenger transport executives (PTEs) and passenger transport authorities (PTAs) were established by the Transport Act 1968. The PTEs were local authority bodies responsible for running transport operations in their respective regions, accountable to the PTAs. Although trams, underground trains and light rail systems were included, the majority of transport operations controlled by the PTEs were bus services. Former municipal bus companies absorbed into passenger transport executives Many municipal bus companies in the largest conurbations came under the control of passenger transport executives following the Transport Act 1968. The following is a list of the seven PTEs established in either 1968 or 1974, and the municipal bus companies which became part of combined bus fleets. Merseyside (1969) Birkenhead Liverpool St Helens (1974) Southport (1974) Wallasey SELNEC (South East Lancashire North East Cheshire, 1969), later Greater Manchester (1974) Ashton-under-Lyne Bolton Bury Leigh Manchester Oldham Ramsbottom Rochdale Salford Stalybridge, Hyde, Mossley and Dukinfield Stockport Wigan (1974) South Yorkshire (1974) Doncaster Rotherham Sheffield Strathclyde (1972) Glasgow Tyneside (1969), later Tyne and Wear (1974) Newcastle upon Tyne South Shields Sunderland (1973) West Midlands (1969) Birmingham Coventry (1974) Dudley Midland Red operations (1973) Walsall West Bromwich Wolverhampton West Yorkshire (1974) Bradford Halifax Huddersfield Leeds Deregulation In 1986 as a result of deregulation of bus services all PTEs were compelled to transfer their bus operations to "arms length" public transport companies. This meant that the PTE/PTA could no longer regulate the routes and fares of the bus operators, nor could they prevent (legal) competition from external operators. The PTEs moved to a role of maintaining common facilities and financing less profitable but socially necessary services, although these had to go to open tender. As a result of the split, all bus operations were re-branded: South Yorkshire as SYT (South Yorkshire Transport) West Yorkshire as