Serious record keeping failures were found

An Ayrshire teenager, Katherine Fish, died when an Allan's coach carrying pupils from Largs Academy crashed near Dijon, in France, last year.

An inquiry into the firm's running uncovered failings in the system for monitoring the hours drivers worked.

But the transport watchdog is to grant David Allan a new licence after his father, William, stood down.

Allan's Coaches of Gorebridge, Midlothian, admitted last June that their system for monitoring the hours drivers worked was inadequate.

These related to alleged falsification of tachograph records and inadequate breaks being taken by drivers.

In granting the new licence I will not be putting the Allans, ie David, out of business but I will be curtailing them to a standard national licence Joan Aitken Traffic commissioner

Government inspector Susan Traynor said: "These offences we found were some of the most serious that we had ever encountered in our careers."

The inquiry was separate from any investigation into the crash but the commissioner had the power to withdraw an operator's licence

Traffic Commissioner Joan Aitken warned several drivers over their future conduct and issued temporary suspensions on 15, for failing to take breaks, failure to keep records and falsifying records.

The licence for William & David Allan, trading as Allan's Coaches, will be revoked at the end of March 2004.

The new application for David Allan then comes into effect.

"It is my view that it should be revoked on two grounds - the failure of the undertakings and the removal of professional competence," the commissioner said.

"In granting the new licence I will not be putting the Allans, ie David, out of business but I will be curtailing them to a standard national licence of lesser vehicles than at present."

A spokesman for Allan's Coaches said they were pleased to be allowed to continue in business and fulfil their schools and works contracts.