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| Re: NJT Farebox recovery by every route (306265) | |||
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Re: NJT Farebox recovery by every route |
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Posted by WillD on Sat Jul 4 01:50:35 2015, in response to Re: NJT Farebox recovery by every route, posted by kcram3500 on Fri Jul 3 19:11:19 2015. You're entitled to your opinion of "theoretical nonsense", but this is how large transit agencies create their budgets and subsidy requests.But you're not entitled to your own facts regarding what qualifies as profitability or cross subsidization. So long the routes are running a deficit there is no cross-subsidization amongst them. If public transportation was a profitable industry, the private operators never would have left - you'd still have Fifth Avenue Coach and Public Service operating large transit systems, and Penn-Central would still be hauling passengers. That might be true if the network as a whole made a profit. But that simply will not happen so long as automobile travel remains so thoroughly subsidized. OTOH, if a handful of individual routes turn a profit while the larger network requires subsidization then it's simply good public policy to retain those profitable lines within the network to provide actual cross-subsidization, thereby reducing the subsidy required by the transit agency as a whole. Selling off individual routes which may generate an operating surplus to private operators only introduces a third party's profit margin while providing a very marginal reduction in cost. IMHO that's not a worthwhile trade. |
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