The competition in the AVE has killed its bus line

Something is moving on the Spanish bus map. That something is the government’s intentions to reform the concessions that make up current photography. On the way there has been talk of reforming the entire system but also how many concessions already where they should be delivered.

And that directly attacks very specific lines.

In coma. Among all the concessions that Spain has awarded for bus service, The Madrid-Valencia line is one of those that agonizes. In fact, nobody wants to get that concession because with the high -speed line next to him does not come out profitable.

After the concession, Alsa (the company that was exploiting this line) resigned to continue with it given its null profitability. Then a contest was convened to exploit a line that crosses all the Spanish width, from Badajoz to Valencia, passing through Madrid. That contest was completely deserted.

Concessions? Yes, concessions. Bus lines In Spain they compete for concessions that are then exploited exclusively. These concessions last for years and, obviously, the company has to face the possible changes in the flows of movements that can occur between its passengers.

In the system, therefore, it is competed before putting the buses on the road. A line is taken to competition and awarded the best bidder. In high railway speed, companies that demonstrate that they can technically operate on the road come to compete directly. On buses, that does not happen because the chosen company has exclusivity for a certain time.

A deep change. What the government raises is that Spain needs a deep change in the concession system. In recent years, the market has been completely opened and that it is the companies that rival on the road at a price.

However, the final intention is to take out a great contest maintaining the current concession system. Of course, given the large number of lines whose competitions are empty or companies that do not want to maintain their concessions, from the government advocate drastically reducing the number of runners. The intention is to pass Of the current 77 concessions to a total of 22.

From the government they point out that this decision goes through the difficulty of placing these concessions but also because the way of moving of the Spaniards has changed in recent years. The cities have atomized (even more) the exits and arrivals but, in addition, the high -speed train and the competition have completely transformed the panorama.

It is not competitive. What happens? When high speed has affordable prices, the bus is not competitive. In the Galician corridor The train has managed to eliminate travelerseven to the plane that is faster. In the case of the bus, the situation is even more complicated because, in addition, it is slower and uncomfortable.

That leaves lines like that Badajoz-Madrid-Valencia without interested companies. With such a low volume of customers and a faster and more cheap alternative, prices have to be much more expensive to compensate. It is obviously the worst option.

Whenever you travel to Badajoz, Madrid, Valencia or any of the stops where the train stops.

What about us? All this directly impacts the paths of those who do not live in those cities or larger populations where there is a high -speed rail stop. The bus is in charge of generating a capillary network of paths among small populations where the only alternative is private transport.

This is what they defend from Travel more by busan association that defends a competitive alternative so that this means of transport can survive. They bet on a complete liberalization in these lines that have to fight with high -speed lines.

They point out that with the rates raised, The bus trip between Madrid and Valencia would entail an expense of between 40 and 50 euros for the client and a duration of more than four hours. With Renfe, Iryo and Ouigo fighting on the train, it is possible to make that same trip in the middle of time in half of the money. According to the CNMCthe average price of traveling with these companies in a Madrid-Valencia is 27.46 euros.

What solution is there? According to this platform in defense of these less profitable bus lines, open them to direct competition. They point out that with the current layout, it is contemplated that the rates for operating will be recalculated with inflation and that, therefore, in 2035 the average price of the ticket will return to around 50 euros despite the fact that at the time of the new award a price of about 40 euros is established.

In the other side of the currency we find associations like Confebus They point out that these concessions allow companies to better study the market and their profitability but, they defend, the traveler is protected because once the service has been awarded, the company has not to leave the line overnight.

Photo | Artem Makarov and Xataka

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