Nishitetsu: Bus business has shrunk a lot after bad profit earning due to "1000 yen High way"

Oita Godo Newspaper (evening edition on November 18, 2009)

West Japan Railway (Fukuoka city) or so called Nishitetsu expressed the big-scale shrinking of bus business on 18^th that because of the decrease of passengers as an impact from the economic crisis and the reduction of the high way using fee, the company plans to abolish some route sections and stop hiring new drivers in 2010. "The bus companies will face the biggest restructuring in the history." Until now, they use the profits from high-way buses to cover the deficits of other route buses however earning profits from high-way buses has become worse also. This composition shows the collapsing shape of the firm.

About the abolishment of route sections, it is planned to implement to as many as 10-20 sections in Fukuoka and Saga prefectures which are under the management of Nishitetsu's subsidiary companies. About the reduction of number of buses, 20-40 buses will be stopped from formerly approx. 100 buses inside Fukuoka city. Most of stopped routes and buses are due to too small number of passengers triggering the deficits. Moreover, there is a tendency not to employ more drivers in 2010 despite roughly 300 drivers usually newly employed by Nishitetsu every year.

Comment: Here is another business impacted by the bad economy right now. Personally I was happy to know that the fee for using high ways became 1000 yen only. Of course, that is good for general people but bad for the bus business. However, I believe they will find some creative solutions to solve such problems. It is Japanese people's strong point!!

PUNTHUCHAT Siripun

Thailand