CHICAGO megabus.com, the low-cost intercity bus service based here, is making moves to grow up and out, but it isnt yet ready to confirm any of its plans publicly.

However, industry sources and government agencies report that megabus.com plans to:

Expand to the West Coast by offering service between San Diego and Los Angeles, and between Los Angeles and San Francisco via San Jose and/or Oakland.

Introduce double-decker Van Hool motorcoaches on some of its Midwestern routes that operate out of Chicago.

Also possible is megabus.com service to Las Vegas and Phoenix from Los Angeles.

And longer range plans may call for offering service in the northeastern U.S.

Last month, the California Public Utilities Commission gave its blessing for megabus.com to operate intercity service between Los Angeles, San Diego and San Francisco.

It is widely believed that Coach America will provide the service on a contract basis to megabus.com and its parent company, Coach USA.

Neither Coach USA nor Coach America have been willing to confirm such an arrangement is being negotiated, however.

Meanwhile, a number of Coach USA employees report that more than a dozen American-specd Van Hool TD-925 double-decker coaches have been ordered for use on megabus.com routes.

Training of drivers and maintenance personnel on the new coaches reportedly began last month. Height testing was said to have been completed last year.

ABC Companies, which distributes Van Hool coaches in North America, revealed at Motorcoach Expo in January it planned to start importing double-decker models but it did not identify a buyer.

Longer term, there is industry speculation that megabus.com may wade into the crowded cut-rate intercity market in the Northeast. However, there will be no Northeast expansion until the noncompete agreement between Coach USA and Peter Pan Bus Lines expires.

The noncompete stems from Peter Pans purchase of five Coach USA subsidiaries four years ago (See May 15, 2003 Bus & Motorcoach News).

Currently, megabus.com offers service to 13 Midwest cities from its hub in Chicago. Its fares are based on demand, with every bus having at least a few seats priced at $1.