BUS INDUSTRY EVALUATION METHOD PER ROUTE

Abstract

Transport density and the rate of revenue and costs are usually applied to assessment to expend public subsidy in operating bus service. However, these indexes overlook factors such as business effort as bus services supply under minimum costs. Then, the aim of this paper is to develop an evaluation method of business management condition per bus route in order to distinguish the subsidized bus route efficiently. This method reflects operating condition for inside and outside business environment of bus route. This method is applied to the evaluation of 45 bus routes in Kumamoto city. Consequently, each bus route is classified under 16 categories. Roughly speaking, 20 bus routes are inexpensive and profitable, 6 bus routes are inexpensive and unprofitable, 2 bus routes are expensive and profitable, 17 bus routes are expensive and unprofitable.