BLACKBURN Transport was given a formal warning after a public inquiry found 'holes' in its maintenance record.
But the traffic commissioner for the north west re-assured passengers that they had nothing to be worried about.
The company faced the inquiry in Leeds following an application to expand its fleet by 20 vehicles, which was approved despite two previous incidents.
In 1999 a Blackburn Transport coach driver was fined £300 after he drove for six hours and 52 minutes without taking the required breaks.
Then in March this year, inspectors found that some maintenance records were not kept up to date.
Blackburn Transport bosses were told they would be inspected again in a year to ensure standards were being maintained.
Michael Morton, managing director of Blackburn Transport, said: "At the end of the day, the traffic commissioner has given us the extra licence so she is happy with our work."
He added that the company regulated breaks carefully and that the incident in 1999 was a one-off.
A spokesman for the traffic commissioner said that the traffic commissioner needed to be sure the company could cope with the extra demands before issuing the licence.
He added: "As a result of the public inquiry, Blackburn Transport was issued with a formal warning. In the future they need to make sure they undertake the conditions set by the commissioner."
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