PENNSYLVANIA'S INTERCITY BUS INDUSTRY. A VITAL LINK IN PENNSYLVANIA'S TRANSPORTATION NETWORK

A Final Report and an Executive Summary have been produced. The intercity bus industry provides the most extensive service of any public transit mode available to citizens of the state. Deregulation has produced dramatic changes in the industry which promise to continue. Since 1976 the state has subsidized intercity carriers. More than 400 locations in 63 counties are served. The fleet, terminals and fares were studied. Nearly all intercity service in the state is provided by 25 private companies ranging in size from Greyhound to small businesses that serve a local or regional market within the state. Small operators rely largely on charter and school services for the bulk of their revenues. Major cost components are driver wages and fuel. During the past decade the industry has been plagued by low profits; despite higher fares expenses have risen even faster. Intercity operators agree that charter and tour will be their growth areas; scheduled service is not regarded as a growth area. New charter operators have diminished the ability of established firms to produce charter profits that can cross-subsidize scheduled services. As revenue declines on scheduled services, state and local officials will have to decide whether to continue subsidies or to allow abandonment of these services.