Quote:
Originally Posted by on the move
Before the service was launched on either line, one paper said that the state would subsidise Luas if it wasn't profitable. Whether that is true or not, the reality is, the Luas is ultra-popular, and makes millions of Euro every year. The network has since extended, and more extensions are in the pipeline, providing more windfalls. The begging bowl exercise doesn't wash with me. They have simply taken advantage of the traditional time of year the transport networks have raised their fares. Every rise in Luas fares has always been in early January, and so it is again.
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Luas never made a massive profit, it was always a fairly small sum, I wouldn't even be using the plural millions. The surplus which was achieved in years past went into a sinking fund to cover for future overhaul and refurbishment costs. The increase in Luas fares % wise was consistently less than CIE group companies. In a proper country Luas would be afforded a reasonable subsidy which would allow for lower fares, more security and so on.
The extensions to Brides Glen and Saggart have resulted in signifcant extra costs with comparatively little extra revenue, that is the core reason behind the fare increase. A significant number of extra trams, drivers and customer service staff were required to support this.
I wouldn't be surprised if the 2011 accounts post a net loss on Luas operations.