Re 1 offer was a hit, but BMTC suffered huge loss

Re 1 offer was a hit, but BMTC suffered huge loss
DH News Service, Bangalore:
The promotional offer of the Bangalore Metropolitan Transport Corporation (BMTC) to offer a ride on its premium Volvo (Vajra) air-conditioned buses for Re 1 for days has cost the public corporation dearly.


A promotional offer it may be, to make travel by public transport more popular, but it has made the BMTC poorer by Rs 10 lakh a day. While the normal fares of the Volvo buses start at Rs 10 on a given day, the promo offer of Re 1 while coming in for praise from commuters themselves, like all good things in life has come to an end.

BMTC officials said that the cost of operating each Vajra bus amounts to Rs 10,000 a day, while fetching a daily revenue of Rs six lakh. “With close to 100 volvo buses plying on City roads, the promotional offer made us poorer by Rs five lakh on the four days it was run for Re 1” BMTC officials said.

The BMTC spends Rs 45/km as operating costs for these high end low floor a/c buses. Factor in the average ticket fares that range between Rs 10 and Rs 80, the promotional exercise was done to offer the common man and those who have not travelled in a volvo a chance to do so, added BMTC officials.