Abstract
The capabilities of a transit company to provide service is usually based on the existing commuter traffic. Rapid increases in commuter ridership will cause transit service to deteriorate. The transit companies' ability to respond to increased ridership is controlled by the length of travel by the new riders, the availability of additional buses and trained staff. This study found that under a situation where fuel was allowed to price itself in a free market., the transit company could face a situation of declining revenue per bus mile with increasing patronage.