00453096

The Bus Regulatory Reform Act of 1982 (BRRA) increased entry and exit flexibility for regular-route intercity bus firms and created a process for preemption of burdensome state regulations, particularly those dealing with exit. Congress directed the Motor Carrier Ratemaking Study Commission to study the impacts of these changes. The results of that study regarding changes in bus service are presented. In the year following implementation of the BRRA, carriers filed to discontinue service to 2,154 points. Most of the points losing service had small populations; 80.7 percent had less than 2,500 persons and had been receiving a very low level of service. Revenue and cost data for a number of the route segments at issue indicated annual carrier losses of $7 million on variable costs and more than $13 million on a fully allocated cost basis. A number of routes did not have any revenue, indicating that few users would be affected by discontinuance. Against these service losses must be balanced the positive effects of increased competition resulting from 225 applications for regular route authority, of which 71 percent were for regular-route intercity service. The competitive pressures for new services and fare reductions between larger cities provide benefits such that the overall effect of increased entry and exit flexibility has been positive even though a small number of bus riders have experienced an absolute loss of service.

This paper appeared in Transportation Research Record N1012, Economic and Regulatory Issues in Intercity Bus and Other Transportation.

HRIS, UMTRIS

p. 38-46

1985

Transportation Research Record

References (9) ; Tables (7)

Bus transportation; Competition; Deregulation; Fare reduction; Fares; Impact studies; Intercity bus lines; Legislation; Regulatory reform; Service discontinuance

Administration and Management; Economics; Highways; Law; Motor Carriers; Public Transportation; Society; I10: Economics and Administration

Dec 31 1986 12:00AM

• AN ECONOMIC ANALYSIS COMPUTER PACKAGE FOR URBAN HIGHWAY IMPROVEMENTS
• BUS STATION SECURITY: CRIME AT INTERCITY BUS STATIONS (DISCUSSION AND CLOSURE)
• INTERCITY BUS DEREGULATION: THE IMPACT ON URBAN AND RURAL PUBLIC TRANSPORTATION SYSTEMS IN THE PROVISION OF INTERCITY BUS FEEDER SERVICE (ABRIDGMENT)
• INTERCITY BUS PASSENGER PROFILE
• LABOR COSTS IN URBAN MASS TRANSIT: A CASE FOR REGULATORY REFORM
• PRICING OPTIONS FOR URBAN TRANSPORTATION MODES
• SUBSIDIES, POLITICAL CONTROL, AND COSTS OF U.K. URBAN BUS PROVISION
• THE CONTESTABILITY OF THE U.K. INTERURBAN BUS MARKET
• THE DOMESTIC DEMAND FOR AIRMAIL SERVICE BY THE U.S. POSTAL SERVICE
• THE IMPACT OF BUS DEREGULATION ON SMALL TOWNS