Private operators feel the pinch from free bus plan
By The Nation
Published on August 4, 2008
Private bus operators in Bangkok are complaining that their daily revenues have declined about 30 per cent after the government launched measures to help low-income earners, including free travel on buses operated by the state-owned Bangkok Mass Transit Authority (BMTA).
Chatchai Chaiviset, president of the private bus operators' association, said that initial estimates found revenues falling about one-third per day, or a loss of an average of between Bt700-Bt1,000 per bus after the government-sponsored programme began.
He said his association would evaluate the long-term negative impact and would request for assistance from the government.
Private bus operators are asking to join the government programme for reducing bus fares by Bt3 for both air- and non-air-conditioned buses per trip, with the government helping to supplement the discounted fare.
The six measures were implemented on Friday, except for the reduced excise tax on fuel, which began on July 25. The measures are aimed at boosting the Thai economy, which has become sluggish due to high oil prices, and also to assist the poor and low income groups.