Low cost coach service asks Romanian Govt. to liberalize road passenger transport market

Low-cost coach service MementoBUS, owned by Romanian tour operator Christian Tour, asked the Government to liberalize the road passenger transport market, which would lead to prices up to 80% lower on this segment, the company announced, quoted by News.ro. The request comes amid public discussions about passenger transport regulations, where the Confederation of Licensed Transport Operators in Romania (COTAR) protested against unauthorized transport operators, represented by ride sharing services. “Unlike transporters that protested in Bucharest, blocking the city to ask, basically, that the monopoly already held by old companies and guaranteed by the state be kept, and condemning travelers to miserable transport conditions, MementoBUS is asking the Romanian Government to ignore this mafia-type protests and act in the interest of citizens by liberalizing the market of road transport for passengers and consequently offering Romanians access to coach rides up to 80% cheaper,” the company said in a press release. The drivers and transporters, who protested in front of the government’s building in Bucharest on April 26, managed to convince the Government to change the taxi law and have the Police fine Uber drivers and others who carry out unauthorized transport activities, according to Mediafax. MementoBUS gave the example of air transport sector, which has been liberalized, and where the entrance of low cost companies has driven prices down by up to five times on internal routes. The company says the protesters want to eliminate any competition and keep a privileged position in a market dominated by poor services, lack of safety, and high prices. “The absolutely destructive situation of the road transport market for passengers has a negative effect on the Romanian economy. Generalized corruption affects the regular passenger road transport and demonstrates that, unfortunately, the public road passenger transport market is not a free one, which would function according to free competition and market economy. On the contrary, it is taken up by the “smart guys” who set themselves up comfortably 15 or 20 years ago, and who have created a system of “relations and acquaintances” which turned this market into a closed one, not accessible to other new companies,” the company says. According to MementoBUS representatives, passenger transport by road can be done based on a license granted following auctions organized by the Romanian Road Authority (ARR). Although ARR organizes new bids, existing transporters usually get them because the most important criterion is the “seniority on the road,” the coach company says, explaining this takes place to the detriment of travelers. The coach service argues that seniority could be at most relevant in the case of the experience of the driver but not regarding the length of time a company has spent providing services. The local Competition Council looked at the road transport market for passenger several years ago and found “major irregularities of the main legislation, as well as of the secondary one governing the field,” News.ro reported. MementoBus is part of the Christian Tour group, one of the largest travel agencies in the country. The group had a turnover of over EUR 70 million in 2015.