Issuing temporary licences is not the best solution to the suspension of City Liner bus services in Selangor, said Peninsular Malaysia Transport Workers Union (TWU) secretary-general Zainal Rampak.

He said the Land Public Transport Commission (Spad) which submitted the proposal should conduct an in-depth study why City Liner operator Konsortium Transnasional Berhad (KTB) cited losses for suspending services.

“I’m not sure whether Spad conducted a study on the losses. I feel what KTB said is true as too many bus companies are operating the same routes compared to only one company previously,” he told Bernama in Kuala Lumpur today.

He was commenting on KTB’s suspension of services since Tuesday and a proposal to issue temporary operating licences to fill the vacuum left by City Liner.

Media reports said the action was taken because of the big losses  incurred by KTB, the country’s largest public bus operator.

Zainal said too many bus companies operating the same routes caused unhealthy competition where operators have to fight for passengers.

Spad should conduct a study whether to continue its policy of giving too many permits for the routes or limit to just one company.

“For me, the policy of giving too many permits for the routes is inaccurate and should be changed for the good of bus companies and the public,” he said, hoping that the problem would be resolved soon for the sake of 80,000 public transport users.

He also rejected a proposal to provide subsidies to KTB and bus operators which suffered losses but proposed that the government abolish sales tax on spare parts.

KTB executive director Tengku Hasmadi Tengku Hashim said the company suffered losses of RM10 million annually due to higher operating costs and competition.

- Bernama