SECURITIES--------------------------------------------------------------------------------

                       SECURITIES AND EXCHANGE COMMISSIONWashingtonCOMMISSION
                             WASHINGTON, D.C. 20549

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                                    FORM 8-K

                                 CURRENT REPORT

                       PURSUANT TO SECTION 13 OR 15(D) OF
                       THE SECURITIES EXCHANGE ACT OF 1934

                Date of report (Date of earliest event reported):
                       October 16, 2006 (October 12, 2006)

                      ATLANTIC EXPRESS TRANSPORTATION CORP.
               (Exact Name of Registrant as Specified in Charter)

          NEW YORK                         4151                 13-392-4567
(State or Other Jurisdiction   (Primary Standard Industrial    (IRS Employer
      of Incorporation)         Classification Code Number)  Identification No.)

                7 NORTH STREET STATEN ISLAND, NEW YORK 10302-1205
          (Address of Principal Executive Offices, including Zip Code)

       Registrant's telephone number, including area code: (718) 556-8079

                                 NOT APPLICABLE
          (Former Name or Former Address, if Changed Since Last Report)


Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions (see General Instruction A.2. below):

[ ] Written communications pursuant to Rule 425 under the Securities Act
    (17 CFR 230.425)

[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act
    (17 CFR 240.14a-12)

[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the
    Exchange Act (17 CFR 240.14d-2(b))

[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the
    Exchange Act (17 CFR 240.13e-4(c))

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ITEM 1.01. ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT.

     On October 12, 2006, Atlantic Express Transportation Corp. (the "Company")
amended its senior credit facility with Wachovia Bank, N.A. ("Wachovia") to
increase the maximum borrowing availability under the revolving credit facility
by $10.0 million from $20.0 million to $30.0 million. In addition, the credit
facility was further amended by extending the termination date from April 22,
2007 to February 29, 2008. A copy of the amendment to the senior credit facility
is attached hereto as Exhibit 10.1.

     Consistent with the Third Supplemental Indenture to the Indenture described
below and in connection with the amendment to the credit facility, the Amended
and Restated Intercreditor Agreement, dated as of March 3, 2005, among Wachovia,
The Bank of New York, as collateral agent under the Indenture governing the
Company's 12% Senior Secured Notes due 2008 and Senior Secured Floating Rate
Notes due 2008, and Airlie Opportunity Capital Management, L.P., as collateral
agent for the holders of the Company's 10% Third Priority Secured Notes due
2008, was also amended to increase the priority amount of the revolving credit
facility by $10.0 million from $23.0 million to $33.0 million. A copy of the
amendment to the Intercreditor Agreement is attached hereto as Exhibit 10.2.

ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS.

     (c)  Exhibits:

          10.1 Amendment No. 13 to Second Amended and Restated Loan and Security
               Agreement, dated as of October 12, 2006.

          10.2 First Amendment to Amended and Restated Intercreditor Agreement,
               dated as of October 12, 2006.


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                                   SIGNATURES

     Pursuant to the requirements of the Securities Exchange Act of 1934, as
amended, the registrant has caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.

Date:  October 16, 2006

                                           ATLANTIC EXPRESS TRANSPORTATION CORP.


                                           /s/ Nathan Schlenker
                                           --------------------
                                           Name:Nathan Schlenker
                                           Title:   Chief Financial Officer


                                       2

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) ofthe Securities Exchange Act of 1934

Date of report (Date of earliest event reported): August 1, 2006 (July 27, 2006) Atlantic Express Transportation Corp. (Exact Name of Registrant as Specified in Charter)

New York (State or Other Jurisdiction of Incorporation) 4151 (Primary Standard Industrial Classification Code Number) 13-392-4567 (IRS Employer Identification No.)

7 North Street Staten Island, New York 10302-1205 (Address of Principal Executive Offices, including Zip Code) Registrant's telephone number, including area code: (718) 556-8079 Not Applicable (Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.01. Completion of Acquisition or Disposition of Assets.

On July 27, 2006, T-NT Bus Service, Inc., a subsidiary of Atlantic Express Transportation Corp. (the ‘‘Company’’), completed the sale of substantially all of its assets to First Student, Inc (‘‘Purchaser’’). Pursuant to the Contract of Sale, T-NT Bus Service sold substantially all of ist assets to Purchaser for a gross purchase price of $12,700,000, which amount includes payments of $100,000 to Domenic Gatto, the Company’s president, as consideration for Mr. Gatto entering into a non-competition agreement with Purchaser. The Company previously reported entry into the Asset Purchase Agreement in its Current Report on Form 8-K filed on May 18, 2006.

Item 9.01. Financial Statements and Exhibits.

10.1 Asset Purchase Agreement, dated May 11, 2006 (filed as Exhibit 10.1 to the Company’s Current Report of Form 8-K filed on May 18, 2006, and incorporated herein by reference).

Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date: August 1, 2006

ATLANTIC EXPRESS TRANSPORTATION CORP.

/s/ Nathan Schlenker Name:Nathan SchlenkerTitle: Chief Financial Officer

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