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Tales from the economics of transit

by Benjamin Kabak

The fallout from the MTA’s June service cuts has continued into the fall, and today, I have two stories that highlight both the politics and economics behind the service cuts. The first came from last week’s issue of The Brooklyn Paper, and it involves the dollar vans that have replaced some eliminated local bus routes. Sulaiman Haqq, the businessman running the van service along the defunct B71 route, has found that he is bleeding money as few people ride the service. During the first two weeks of service, he averaged 1-4 passengers during his 16-hour shift and certainly isn’t covering even his costs. “This is the reason why public transportation is subsidized,” he said. “It is not profitable.”

The second story comes from yesterday’s Brooklyn Daily Eagle. Sen. Marty Golden, Councilman Vincent Gentile and Assemblywoman Janele Hyer-Spencer led yet another protest against the elimination of two express buses in advance of a lawsuit alleging that the MTA’s cuts violated the Americans with Disabilities Act. I’ve profiled Hyer-Specner and Golden in the past, and these two are offering up nothing new. “Let’s return the X37 and the X38 back on the FDR Drive, exiting at 23rd Street. That is the best way to transport people quickly and efficiently from my district to uptown Manhattan,” Golden said yesterday. Neither he nor Hyer-Spencer have done anything to help return the $143 million Albany took from the MTA late last year. With that money and a little help from the right people in Albany, the MTA could theoretically look to restore service along these two highly unprofitable express bus routes.

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2 comments

Christopher October 22, 2010 - 4:55 pm

Automotive and oil production wouldn’t be profitable without subsidies either.

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Taxi Commission’s Group Ride Program dying a quiet death :: Second Ave. Sagas January 3, 2011 - 11:49 am

[…] that the pilot ran did I see a dollar van pass down Union St., and by October, Sulaiman Haqq was ready to call it quits. “This is the reason why public transportation is subsidized,” he said. “It is not […]

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