Distinction between commercial and non-commercial bus services in Germany: Given by nature?
German public transport services by bus are characterized by a regulatory framework that distinguishes between commercial and non-commercial services. This paper shows opportunities for action for market participants.
Contrary to the apparent views of legislators costs and revenues are not the only parameters determining whether or not operators are able to provide services in a commercially viable way.
Apart from the local characteristics of the specific service, I show that the classification of services as commercial versus non-commercial is determined in large part by the public transport authorities that set minimum quality standards to be provided by operators. The analysis shows that the authorities awarding the contracts in some cases affect market organization significantly depending on how they make use of this power.