Private bus companies will start operating thousands of buses on lines similar to Egged’s all over the country, charging prices that may amount to half Egged’s fees. A decision to this effect was taken at an emergency meeting of the Hauliers and Bus Companies Council at the end of last week. The meeting was attended by the representatives of 50 private bus companies.
The participants accused Egged of approaching schools, local and regional authorities and hotels, and offering busing services at dumping prices. Hauliers and Bus Companies Council chairman Gabi Ben-Haroush said, “Only recently Egged pushed aside a Yeroham-based private busing company that has been operating busing services for Dead Sea hotels. Egged did the same to a private company that has been operating bus services for Eilat hotels for years.”
Ben-Haroush said that, for this reason, private bus companies were organizing to operate public busing services for several destinations at tariffs 30-50% lower than Egged’s. The destinations in question include Tel Aviv, Haifa, Jerusalem, Beer Sheva, Eilat, Kiryat Shmona, and others.
Ben-Haroush said that private bus companies have a large number of busses they bought on the recommendations of the Ministry of Tourism, which expected many tourists to attend the 2000 celebrations.
Egged spokesman Ron Ratner said in response: “The Hauliers and Bus Companies Council shouldn’t resort to scare tactics vis-a-vis the rule of law in Israel. The Ministry of Transport has already started a wide-ranging reform in the public transportation sector, involving the introduction of free competition in up to 50% of Egged’s lines. Private companies belonging to the Hauliers and Bus Companies Council will take part in this competition.”
Ratner added that Egged agreed to opening the public transportation market to competition, and in practice, 8% of Egged’s lines are already open to competition. According to Ratner, this will leave hundreds of Egged members currently operating these lines without sufficient employment. Ratner added that Egged was not allowed to bid in the tenders for these lines, so as not to hurt others’ chances of winning.
Published by Israel's Business Arena on 19 August, 2001