PERTH, Scotland - Think the fares charged by New York's Chinatown bus operators are low?

The parent company of Coach USA is experimenting with an Internet-driven bus operation that is offering travel between major cities in Scotland for the equivalent of $1.66, or one British pound.

In September, Stagecoach Group PLC, which has owned Coach USA since 1999, launched megabus.com, a no-frills, point-to-point service. The Web-based ticketless service provides passengers with cheap travel between Glasgow, Edinburgh, Perth and Dundee, Scotland, using double-decker buses.

Distinctive blue and yellow Megabus coaches, featuring a 13-foot graphic of the service's Megadriver character, run 10 times a day on the competitive route between Glasgow and Edinburgh. Seven runs a day link Perth and Dundee to Edinburgh and Glasgow.

Stagecoach Chief Executive Brian Souter said: "This is a totally new concept, a first for Scotland and it heralds a new era in low-cost, intercity bus travel. We've looked at the way the cheap airlines run their operation and we believe there's a big market out there that doesn't use the bus at present but can be attracted to our new product.

"We feel young people, and students in particular, will catch on to the service and the bargain-basement prices will be ideally suited to their budget. We also hope the low cost will encourage car drivers to switch to public transport and help ease congestion on our roads."

In August, a pilot megabus.com service was launched between Oxford and London, England, with 3,000 tickets sold in three weeks. If the Scottish routes are a success, Stagecoach plans to roll the service out to other parts of the United Kingdom.

The double-decker coaches carry 94 passengers, allowing megabus.com to target high-volume, low-cost business.

All megabus.com fares will remain at 1 pound until the service is established. The company will then yield manage the seats in the same way as the airlines, with slightly higher fares for last-minute bookings or popular destinations.

"Megabus.com is a genuine bargain," said Souter. "At least 40 percent of our seats will always be at the lowest 1 pound fare and the highest prices will still be extremely competitive at around 3 to 4 pounds ($5-$6.65 U.S.)."

Stagecoach is using Olympian coaches that it previously operated in Hong Kong. The no-frills buses have no toilets, but no route on the new service is longer than two hours. The coach interiors have been refurbished, leaving them clean and comfortable.

Megabus.com has an attractive Web site, featuring its Megadriver character. Go to www.megabus.com.

In August, Stagecoach launched a "phone-and-go," demand-response operation called Yellow Taxibus, which seeks to combine a taxi and bus operation. The service is running from Fife to Edinburgh, Scotland.

Yellow Taxibus, the UK's first commercial demand-response operation, is designed to combine the benefits of a fixed bus route with the flexibility of pre-booked taxi pick-ups. A fleet of vans offers high-frequency service between Dunfermline and the Scottish capital seven days a week, with fares as low as 2 pounds ($3.30 U.S.).