For the transport companies, but especially for many medium-sized bus companies that urgently need fare revenue from school ticket sales to stabilize their business, a loss of this income would have major economic consequences, including the insolvency of the respective company. District Administrator Allgaier: "We must avoid this - school transport is a central pillar of our local public transport in the district."
The district administrator points out that talks are being held with the Stuttgart Transport Association (VVS) to ensure that parents who remained subscribed in April and did not return their tickets will not be debited for the month of May.
The companies in the so-called exempted school transport sector, i.e. transport to special schools and special needs schools, will also receive stabilizing assistance. Although the companies do not provide their services, their fixed costs continue to run. These will be reimbursed by the district. "We reimburse around 75 percent of the expenses and assume that this corresponds to the so-called fixed costs," explains District Administrator Allgaier. The companies also have access to emergency aid from the state.
According to the district administrator, both measures will solve the most pressing problems in public transport on the basis of the state's COVID-19 100 million emergency package. Of course, solutions would also be worked out in the coming days for any further loss of income for transport companies. The district administrator recalled: "In order to secure liquidity for the month of April, we have already brought forward payments on account to the transport companies, which should actually have been paid in May and June."
District Administrator Dietmar Allgaier: "Only efficient public transport guarantees mobility. It is an absolutely essential infrastructure. It is now important to maintain the bus companies, because public transport must continue to function even after the coronavirus crisis." However, Allgaier also formulated a clear expectation: "We expect full reimbursement of costs from the state, as the 100 million emergency package is only an interim payment."