I don’t get it Louisiana!
The state is going to shut down the LA Swift bus service because of losing money.
An Associated Press article in the The Advocate gives the following data. The state claims that feds will reduce funding, making this service a $750,000 loss each year, so they have to shut it down since they cannot afford the loss.
- Total cost of the service is $2.3 million a year.
- Feds will only give them $1.6 million next year.
- This will result in a $700,000 short fall.
- There are 10,000 riders each month. A round-trip ticket costs $10. So they make $100,000 a month in ticket sales or $1.2 million a year.
The $700,000 shortfall subtracted from the $1.2 million ticket sales means there is a $500,000 profit! Why are they shutting this down?
For the riders, the cost of driving round trip is probably about $23-$25, plus parking costs.
Riders could pay $20 and still save money, then this project could be really profitable.
Another way to look at it ... 120,000 riders per year at $20 each is $2,400,000. With no state or federal funds, this service could have a $100K profit each year.