Path Transit has lost two bus contracts after the Public Transport Authority announced that Swan Transit and Southern Coast Transit were the preferred tenderers for two northern suburbs bus regions.
Swan Transit will run the bus services in the Marmion contract area and Southern Coast Transit will run services for the Joondalup area.
In a statement, the PTA said the two areas represent about 20 per cent of the Transperth bus network.
Path Transit currently operates the Marmion and Joondalup contract areas as a single area.
The PTA said as part of the tender requirements about 90 of the 400 people employed by Path will be offered jobs with the new operators.
The Joondalup and Marmion contracts were put out to tender in June in accordance with Transperth's normal practice of renewing contracts on a rotating basis.
The contract only relates to operation of bus services.
The State Government retains ownership of the buses and control of related infrastructure like bus depots.
The PTA expects to finalise negotiations by the end of the year and the new contracts will come into force in May 2011.