This interview with two officers of a Dallas, TX, bus lessor explains why they have expanded into a new operation which provides turnkey service contracts for operation of transit or commuter express service for public sector agencies. Privatization, as the procedure is designated, has three areas where savings are generated: Operations, added revenue generation, and capital equipment costs. Private firms can offer lower labor rates and economies in driver selection and training, bus maintenance and bus cleaning. Buses owned by a private agency may be utilized for other revenue generation when not being used for transit authority contracts. With proper contract structuring, the service provider can achieve the tax benefits involved with purchasing capital equipment. It is important that public agencies negotiate service contracts rather than arrangements which tax authorities would consider as leases of buses from the private contractor. Another facet is bus maintenance where it is advantageous for the contractor to perform all such work. Other facets of this contracting process are also discussed.

  • Availability:
  • Corporate Authors:

    Bobit Publishing Company

    2500 Artesia Boulevard
    Redondo Beach, CA  United States  90278
  • Publication Date: 1986-1

Media Info

  • Features: Photos;
  • Pagination: 5 p.
  • Serial:
    • Metro
    • Volume: 82
    • Issue Number: 1
    • Publisher: Bobit Publishing Company
    • ISSN: 10098-0083

Subject/Index Terms

Filing Info

  • Accession Number: 00455016
  • Record Type: Publication
  • Files: TRIS
  • Created Date: May 31 1988 12:00AM