Canterbury bus company, Travlon, which carries school children and tourists has narrowly avoided losing its licence but remains under close supervision by authorities.

﻿Travlon was successful appealing to the High Court in Christchurch against an immediate NZ Transport Agency cancellation of its licences but it must apply again for them in May.

Travlon's maintenance and safety performance came under close scrutiny after one of its buses crashed in the Otira Gorge in December 2015 injuring 13 passengers and the occupants of an oncoming car.

CARYS MONTEATH/STUFF Brother and sister team Alex and Claire Bruce, owners of Travlon Coachlines.

In February 2017, another Travlon bus crashed on the Akaroa Highway when 26 passengers were injured.

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Between the accidents, NZ Transport Agency officers and police inspected 27 buses, identifying faults in 18. Another audit of 33 vehicles in 2016 found faults in 22 and NZTA placed the company under supervision requiring more regular checks.

Since 2012 the maintenance on the buses was carried out by mechanic James Coakley who is currently defending charges of "injuring by an unlawful act" where, if death had been caused in the Otira crash, he would be guilty of manslaughter.

Travlon's lawyer told the High Court that dependence on Coakley maintaining the bus fleet was at the heart of NZTA's concerns and that issue had now been squarely addressed because he no longer worked for Travlon.

Travlon owner Alex Bruce claimed NZTA officers had placed the company under intense scrutiny and had become adversarial.

Travlon had now identified the buses at risk and, fixed them, and was having the fleet tested at an AA testing station.

High Court Justice Gerald Nation ruled that the loss of licence would have major consequences for the 30 drivers and other staff and there may have been breaches in natural justice.

"I also accept that a significant part of the company's business involves the carrying of school children. It must be of value to schools and families who rely on that service," Justice Nation said.

He imposed conditions requiring all buses to be AA inspected and NZTA approved, and Travlon will be required to apply for new licences after May 2018.

NZTA's vehicle specialists had doubted Coakley's competence after finding significant defects with brakes on the bus in the 2015 Otira accident.

﻿After the 2017 Akaroa accident, faults were found in the bus, although they may not have contributed to the crash.

A third high level inspection of 20 Travlon buses was carried out in April 2017 finding faults in 14 vehicles.

NZTA said there was little or no improvement in the condition of the vehicles between the second and third fleet inspection.

In March 2018 a Travlon bus was inspected carrying 30 school children. The police vehicle safety officer ordered it off the road.

NZTA had told Travlon, it planned to revoke the company's licence, which he successfully appealed, pending the latest High Court hearing.

Soon after, Travlon's owner, Bruce, dispensed with the services of Coakley and engaged Dennis Robertson, chief executive of the Road Transport Association to undertake a risk appraisal to assess maintenance, and other safety peer reviews.

Justice Nation accepted the vehicles operated by Travlon were below a safe standard and the mechanic, Coakley, was operating at level "well below that expected of a competent heavy vehicle mechanic".