SECURITIES AND EXCHANGE ~~COMMISSION~~COMMISSIONWashington, D.C. 20549

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

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

~~the~~ Date ~~Securities~~of ~~Exchange~~report ~~Act~~(Date of ~~1934~~earliest event reported): August 1, 2006 (July 27, 2006) Atlantic Express Transportation Corp. (Exact Name of Registrant as Specified in Charter)

~~Date~~New York (State or Other Jurisdiction of ~~report~~Incorporation) 4151 (~~Date~~Primary ~~of earliest~~Standard ~~event~~Industrial ~~reported~~Classification Code Number): 13-392-4567 (IRS Employer Identification No.)

~~January 12~~7 North Street Staten Island, New York 10302-1205 ~~2006~~(Address of Principal Executive Offices, including Zip Code) Registrant's telephone number, including area code: (~~January 11~~718) 556-8079 Not Applicable (Former Name or Former Address, ~~2005~~if Changed Since Last Report)

Atlantic Express Transportation Corp.

(Exact Name of Registrant as Specified in Charter)

New York		4151		13-392-4567
(State or Other Jurisdiction of Incorporation)		(Primary Standard Industrial Classification Code Number)		(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):

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

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

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

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

Item 2.01. Completion of Acquisition or Disposition of Assets.

On ~~January 11~~July 27, 2006, ~~Midway~~T-NT ~~Leasing~~Bus Service, Inc., a subsidiary of Atlantic Express Transportation Corp. (the “ ‘‘Company”’’), completed the sale ~~and leaseback~~of substantially all of its ~~owned~~assets ~~real~~to ~~property~~First ~~located in Staten Island~~Student, ~~New York. The sale and leaseback was pursuant to the~~Inc ~~Contract of Sale with a third party~~ (~~the “~~‘‘Purchaser”’’). Pursuant to the Contract of Sale, ~~Midway Leasing~~T-NT ~~sold~~Bus toService ~~the~~sold ~~Purchaser~~substantially ~~its~~all ~~owned~~of ~~real~~ist ~~property~~assets ~~in Staten Island, New~~to ~~York~~Purchaser for a gross purchase price of $412,~~200~~700,000~~. In~~, ~~connection~~which ~~with~~amount includes ~~the~~payments ~~sale~~ of ~~the~~$100,000 ~~real~~to ~~property~~Domenic Gatto, the Company ~~agreed to~~’s ~~leaseback~~president, ~~the~~as ~~premises~~consideration ~~from the Buyer~~ for ~~a term of ten years~~Mr. ~~The~~ Gatto ~~lease~~entering ~~calls~~into ~~for monthly payments of~~a ~~$29,750~~non-competition agreement with ~~annual increases of 2~~Purchaser.~~0%.~~ The Company ~~will be responsible for all real property taxes and utilities. The Company~~ previously reported entry into the ~~Contract~~Asset ofPurchase ~~Sale~~Agreement ~~and the lease~~ in its Current Report on Form 8-K filed on ~~November 29~~May 18, ~~2005~~ 2006.

Item 2 9.~~03 Creation of Direct~~ 01. Financial ~~Obligation~~Statements ~~under~~and ~~an Off-Balance Sheet Arrangement of Registrant~~Exhibits.

~~On January 11, 2006, the Company consummated its lease arrangement~~(c) ~~in connection with the sale and leaseback transaction described in Item 2.01 hereof, which is incorporated by reference into this Item 2.03.~~Exhibits:

~~Item~~10.1 9Asset Purchase Agreement, dated May 11, 2006 (filed as Exhibit 10.~~01.~~1 ~~Financial~~to ~~Statements~~the Company’s Current Report of Form 8-K filed on May 18, 2006, and ~~Exhibits~~incorporated herein by reference).

~~(c) Exhibits:~~1

10.1		Contract of Sale, dated November 22, 2005, for the real property located in Staten Island, New York (filed as Exhibit 10.1 to the Company’s Current Report of Form 8-K filed on November 29, 2005, and incorporated herein by reference).
10.2		Lease for the real property located in Staten Island, New York.

Signatures

2Pursuant 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.

~~Signatures~~Date: August 1, 2006

~~Pursuant~~ATLANTIC toEXPRESS ~~the requirements of the~~TRANSPORTATION ~~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~~CORP.

~~Date~~/s/ Nathan Schlenker Name: ~~January 12,~~Nathan ~~2006~~SchlenkerTitle: Chief Financial Officer

~~ATLANTIC EXPRESS TRANSPORTATION CORP. /s/ Neil J. Abitabilo Name: Neil J. Abitabilo Title: Chief Financial Officer~~2

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