Dunedin CIB is investigating a fire which gutted a bus parked outside a hotel in South Dunedin on Wednesday night.
A police spokeswoman confirmed inquiries into the fire, which appeared deliberately lit, were handed over to detectives.
The fire tore through the Atomic Shuttles bus about 10pm on Wednesday, outside Ocean Beach Hotel in Prince Albert Rd.
Atomic Travel director Maree Robertson said the fire had come as a blow to the company, which had to scramble to cover the Dunedin to Christchurch route.
"We were able to use another coach we had there," she said.
The fire would "absolutely not" affect services and the firm would hire another coach to cover if necessary.
"We are just working through the assessors and the insurance company," she said.
"Obviously we are very disappointed that someone set fire to it.
"But I just don’t know a lot until the assessors get back to me. I haven’t even seen it, at this stage."