Rationalizing routes and operators
There may be several operators in a city, each operating several routes and serving all parts of the city. Some or all routes may be served by several competing operators.
In this situation the requirement to restructure the industry will be less drastic. Under an area contract system, each operator may be eligible to bid for one of the areas, while under a route contract system, each may be eligible to bid for as many routes as it’s capable of operating.
It’s desirable that potential new operators be permitted to bid for routes and areas in addition to the existing operators. This will increase the competitiveness of the bids and prevent existing operators from becoming complacent.
Other key issues to consider
Changes in industry structure
Increasing the number of operators
Consolidating small operators
Forming operators’ associations
Creating a level playing field