Privatization of bus services in Athens, Greece: assessment of 14‐month experiment

Abstract

This paper presents the reform of the Athens, Greece, bus transport services, in August 1992. This was a partial privatization: the public bus company was closed down. Eight new private confederacies were established with overall control in the hands of an organization of mixed interest (public and private). Bus drivers previously working in the bus company were given the right to acquire half a bus. Most of them made use of this privilege. So, in practice, buses of the ex‐public company were transferred to the ownership of the bus drivers, The privatized system operated from August 1992 until December 1993. Then, following the governmental change in Greece, the bus organization was re‐nationalized, and all buses were returned to the public sector. The paper describes the problems of public ownership, assesses the privatized scheme and concludes that a new plan for the Athens bus transport system is necessary.