Corona’s quiet summer hits the bus industry

BusBus.Photo: Heiko Junge / NTB scanpix
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NHO Transport estimates that 1,800 of the nearly 1,900 tour buses have been stationary since March due to Corona restrictions, and the summer is considered lost to the industry.

There are about 500 companies with 3,000 employees operating tourist tour buses in Norway. Due to the travel restrictions that have been introduced, 2,500 drivers have been furloughed, writes Dagens Næringsliv.

– The situation is critical. We are sure to see a number of tour bus companies go bankrupt in 2020, says NHO Transport CEO Jon H. Stordrange.

He says the companies have saved themselves so far by laying off employees and applying for compensation for fixed costs. Without any foreign tourists to drive around this summer, the revenue that saves so many companies will disappear through the winter.

In addition, the fixed cost compensation scheme has an adverse effect on several tour bus companies. Those who own their own buses receive much less compensation than the companies that lease their buses.

– That they now receive compensation for leasing costs can make a difference of NOK 30,000-35,000 per bus per month. When you own close to 30 buses, it gets pretty brutal. The government has done a lot of good in this Corona crisis, but this is a bad mistake, says general manager Lasse Aarstrand in Schaus Buss.

© NTB Scanpix / #Norway Today

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