Rīga municipal transport suffers 2 million euro loss

Rīga's municipal transport company “Rīgas satiksme” has suffered losses of two million euros during the first month where emergency measures were implemented to restrict the spread of the Covid-19 novel coronavirus, but total losses are difficult to predict, as the end the state of emergency is unknown, according to the company's board chair Džineta Innusa on April 16.

A majority of losses can be attributed to the fact that number journeys on each route has been kept relatively the same, while the number of riders has decreased from 450,000 per day to 100,000 per day.

““Rīgas satiksme” is already doing a lot of work to minimize costs. One portion will decrease by halting minibus traffic. Furthermore, price developments in the fuel sector could also have a slight impact and minimize costs,” said Innusa.

While these measures help, then can't completely compensate for the lack of passengers. The company continues to try to find additional cost-cutting measures. Employees haven't been let go, but they're also not receiving downtime benefits as operations continue. Innusa also supports revoking free and discounted riding privileges for the portion of residents that includes pensioners, as in the beginning passenger numbers didn't decrease by much.

“That shows that these restrictions were necessary, because afterwards the number of passengers decreased,” said the board chair.

According to Innusa, observation of the 2-meter distancing rule isn't only the responsibility of the company, but the situation isn't critical as people aren't violating the rule much.

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Transport
Economy

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