The problems are increasing in public transport. It is not only about the bus lines of, among others, the transport companies Arriva, Keolis and Connexxion, where the exact extent of the clearing is not yet clear. NS is also having a hard time and Abellio is doing well in Germany. The transport companies are struggling with millions of dollars in losses due to the corona crisis. But it doesn't look good for travelers either. In some scenarios, there is even a 40 percent contraction in the supply of transport after major interventions in the fixed costs due to the losses in the dams.

market forces or tuition fees?

Due to the decline in the number of travelers due to the corona crisis, public transport companies are suffering major losses. That is why they are reimbursed for their costs to continue operating the timetable in the Netherlands by the government, via the concession providers. NS also ran into problems. The financial problems of NS subsidiary Abellio on the German rail market surprised many. Abellio was unexpectedly given a postponement of payment in Germany last week after a torrent of fines. The Financieel Dagblad even writes that, according to the railway union, it is clear that the problems that Abellio incurred in corona time are the result of the bankruptcy of the market forces on the railways.

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Abellio - North Rhine-Westphalia

Outgoing Minister Hoekstra called the losses of the company that operates in five German federal states 'unacceptable'. Without intervention, the losses of the NS subsidiary could rise to 30 to 50 million euros per year. An uncertain time is dawning for the more than 3000 employees in Germany. A possible scenario is that the company will return or have to sell a number of concessions to a competitor.

The growth diamond Abellio was founded on 5 July 2005 and is located in Essen. In May 2015 the headquarters moved to Berlin. The company is part of Abellio GmbH, a subsidiary of Abellio, which in turn is part of NS. The impact of Covid-19 certainly does not seem to be over yet. In any case, it remains uncertain for a long time what will happen to the operation of public transport. 

Read also: Free fare banned word in German public transport

S-Bahn over the River Ruhr in Essen
pitane
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