Bus companies post record losses in 2009
Bus companies operating in Seoul recorded the largest combined losses last year due to frozen fares and rises in fuel prices, forcing the city government to provide them with bigger subsidies. They recorded an operating loss of 269 billion won in 2009, up 31 percent from 206 billion won in 2008 and 170 billion won in 2007, the Seoul Metropolitan Government said, Sunday. With the ballooning losses, the number of subsidies granted by the city jumped 53 percent from a year earlier to 290 billion won last year. Their combined losses this year already topped 300 billion won, with government subsidies expected to reach 373 billion won. Seoul City said it will force bus operators to carry out self-rescue efforts to cut losses by 9 billion won this year. It will draw up a complementary budget to cover the increased subsidies. Fares have been frozen since April, 2007 when it rose to 900 won from 800 won. The city has not allowed bus operators to raise fares in a move to prevent adding momentum to consumer prices.