Economics of bus operation in the 1990s.

The paper begins with a brief 'economic history' of the bus industry. This helps illustrate basic economic principles governing the industry which are as relevant in the 1990s as in the past. The influence of the economy on the industry is examined and the reasons why both an expanding and a declining economy have adverse consequences are explained. However, the industry contributes to the economy in a significant way. This wider role is being increasingly recognised and the final section of the paper argues that this is likely to provide the key to revitalising its economics in the 1990s. (A)