RTC for flexi-fares on a/c buses

The Andhra Pradesh State Road Transport Corporation (APSRTC) is contemplating to introduce a demand-based tariff plan (flexi-fare) on long-distance air-conditioned buses soon to improve its revenues.

The corporation is steeped in an accumulated loss of Rs 4,000 crore. Though it has been struggling to extricate itself, there is hardly any success so far. Now, the management has come up with this new idea, though it is not yet clear to what extent it is going to shore up its revenues.

The RTC is losing Rs 1,000 crore every year and illegal operations by private transporters is said to be a major reason. According to officials, there are as many as 20,000 private vehicles, including buses, operating across the state and beyond.

Though the way to help RTC earn more is to curb the activities of private operators, the government has not done much in this direction, and instead, asking the RTC to improve revenue by running its fleet more efficiently.

Pushed to a corner, the RTC is now planning to introduce demand-based tariff and hopes that it might bring in some extra bucks.

According to one official, “We are planning to reduce fares from 10 to 20 percent during slack days for long distance air-conditioned buses and increase the tariff from 10 to 25 percent when the demand is high, like on Saturdays, Sundays and festivals.”

According to RTC vice-chairman and managing director AK Khan, a committee has been constituted to find out to what extent the tariff could be reduced or increased, depending on the demand. Khan said after preparing the flex-fares proposal, it will be sent to the government for approval.

The RTC hopes the new measure will help improve occupancy as well as revenue.