Leading bus and rail operator of UK, Go-Ahead, with a view to expand its services overseas, has joined Cook-Illinois in a venture to win contracts for America's signature yellow school buses in and around Chicago.

With the move Go-Ahead has made its first significant expansion outside of the UK. Up until now it had been one of the only 5 public transport operators with operations based solely in Britain.

While Go-Ahead will own 50% of the stakes in the venture, the other half will be owned by Cook-Illinois, which is one of America's top ranked school bus fleet operators. Keith Ludeman, Go-Ahead chief executive, said, "We wanted to explore markets with the same language, legal system and operating characteristics and the US school bus market is exactly that".

The joint venture, which will have both equal stake partners, is being viewed by Go-Ahead as a good starting platform for overseas expansion. No confirmations on any financial aspects of the venture have yet been disclosed by either firm.