After the decrease in state grants, radical changes are brewing up in the passenger transport area, which could grow into a full blown carrier «war», in which the state could be a victim.

Seeing as though passenger carriers have signed a contract with the Latvian state –presented by the Road Transport Administration (RTA) – for serving the route network for 12 years – until 2020, they are in a difficult position, Dienas Bizness writes.

Based on this contract, passenger carriers have taken up obligations – by leasing out buses. This is why dissolving the contract (or a radically changing the game) would mean Court proceedings from the government, and, possibly, additional tax charges for tax payers, for it is highly unlikely that passenger carriers would agree to that. However the state will need to make a decision in this question, even if it means resolving it in the way one of the respondents explained the situation – bite any finger you want, it’ll be painful anyway.

Even though the first ones to enter the theater of war – the Pasazieru vilciens (PV) under the administration of the Ministry of Transport and RTA are being careful in their comments on the current situation, i.e. – the optimization of the train routes, road passenger carriers, car owners, municipalities, passengers themselves are all involved in this, because everyone has their own interests. Both PV and RTA have the save answer: right now, we are conducting discussions to find an appropriate resolution.

Ref: 102.109.109.109.1181