Lake Como: Tourist Coaches and Line Buses Under Pressure - Diesel Costs +40 Million Euros/Month

Context

TL;DR

• Diesel costs rise 21%, adding 40M€/month for transport companies.
• Public transport in Ticino and Lake Como faces sustainability risks.
• Options include reducing services, raising prices, or seeking funding.
• Authorities urged to support transport companies to maintain services.

Key facts

• Diesel cost increase: 21% increase since Middle East tensions began.
• Monthly diesel cost: 40 million euros per month for the sector.
• Yearly diesel cost: Almost 500 million euros yearly projection.
• FNM diesel cost: 10 million euros per month in 2022, 25% of total costs.
• Lake Como diesel cost: 5 million euros per month in 2022, 30% of total costs.
• Ticino price increase: 10% price increase approved for 2023.
• Deadline for tax reduction: May 1st for temporary reduction of taxes.
• Gasoline cost increase: 40% increase in gasoline costs for Ticinese transportation businesses.

Lake Como: Tourist Buses and Line Buses Under Pressure - Diesel +40 Million/Month

To address the crisis of fuel costs, public transportation companies could consider the following options:

• Reduce the frequency of services offered to passengers
• Increase ticket prices
• Research new sources of funding
• Collaborate with other public transportation companies to reduce costs

Comparing practical scenarios

Reducing the frequency of services offered to passengers could have a negative impact on the quality of services provided and may lead to a decrease in passenger satisfaction. Similarly, increasing ticket prices could lead to a decrease in demand for services offered.

Alternatively, public transportation companies could try to reduce fuel costs by researching new sources of funding or collaborating with other public transportation companies. These options may be more effective in the long term, but require greater commitment from public transportation companies.

Conclusion

The fuel cost crisis is a serious challenge for public transportation companies operating on routes crossing the border with the Canton of Ticino. The available options for addressing the crisis are diverse and require greater commitment from public transportation companies. It is essential that competent authorities take specific measures to support public transportation companies and ensure the continuity of mobility services for citizens.

Operational details

Lake Como: Tourist Buses and Line Buses Under Pressure - Diesel +40 Million/Month

The share of diesel fuel in the companies' operating costs represents around 20%, immediately after personnel. The 21% increase in diesel fuel prices since the Middle East tensions began has led to a burden of 40 million euros per month for the sector, with a yearly projection of almost 500 million euros. This scenario puts the public and tourist transportation companies in grave difficulty, as they already struggle to compete with low prices from competitors and maintain efficient services, especially in peripheral or tourist areas like those around Lake Como.

Comparison with the Canton Ticino

In Sicily, for example, the increase in diesel fuel costs has led to a 15% increase in costs for urban lines, while in Tuscany, there has been a 12% increase. In the Canton Ticino, where public transportation is already expensive due to mountainous geography, a 21% increase could lead to a 18-20% increase in costs, putting the sustainability of less frequent but crucial routes for the community at risk.

In 2022, the Canton Ticino State Council approved the public transportation law, which provides for a 10% price increase in 2023. However, the increase in diesel fuel costs could exceed this increase, putting the service's sustainability at risk.

Concrete Examples

The public transportation company "FNM" operates in the Canton Ticino and offers bus and train services for the cities of Lugano and Bellinzona. According to 2022 data, the company spent around 10 million euros per month on diesel fuel, which represents 25% of total costs. With a 21% increase, the diesel fuel cost could increase by around 2.1 million euros per month, putting the service's sustainability at risk.

The tourist transportation company "Lake Como" operates in the tourism sector and offers bus services for the cities of Como and Bellagio. According to 2022 data, the company spent around 5 million euros per month on diesel fuel, which represents 30% of total costs. With a 21% increase, the diesel fuel cost could increase by around 1.05 million euros per month, putting the service's sustainability at risk.Operational Checklist

To address the situation, public and tourist transportation companies must adopt operational measures to reduce costs and improve efficiency. Here are some possible actions:

• Reducing ticket prices
• Increasing service frequency
• Improving vehicle efficiency
• Using renewable energy sources
• Collaborating with local authorities to find solutions

Comparisons between practical scenarios

Here are some examples of how the increase in diesel fuel costs could affect public and tourist transportation services in the Canton Ticino:

• If the increase in diesel fuel costs were to exceed 25%, the FNM bus service could be reduced or eliminated in some areas of the Canton Ticino.
• If the increase in diesel fuel costs were to exceed 30%, the Lake Como bus service could be reduced or eliminated in some areas of Lake Como.

In both cases, the community could be affected by a reduction in public and tourist transportation services, putting the mobility and competitiveness of the Canton Ticino at risk.Advice

To address the situation, public and tourist transportation companies must work together with local authorities and sector organizations to find effective solutions. Here are some advice:

• Collaborate with local authorities to find solutions
• Reduce costs and improve efficiency
• Use renewable energy sources
• Improve vehicle efficiency
• Reduce ticket prices

In conclusion, the increase in diesel fuel costs could have severe consequences for the public and tourist transportation sector in the Canton Ticino. Companies must work together with local authorities and sector organizations to find effective solutions and reduce the negative impact.

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Key points

What to Do and Deadlines for Transportation and Tourism Businesses in Lake Como

Transportation businesses and tourists using these services should be aware of possible price variations of tickets or reduction of services. This article provides information and advice to cope with the current situation.

• By May 1st: Deadline for temporary reduction of taxes, which however does not directly benefit transportation businesses using commercial gasoline. According to ANAV estimates, Ticinese transportation businesses may be affected by a 40% increase in gasoline costs, equivalent to approximately 40 million Swiss francs per month.

• Contact Associations: For businesses, contact ANAV, ASSTRA or AGENS for updates on government appeals and possible support. For example, ANAV has launched an appeal to ask for support to transportation businesses affected by the energy crisis.

• Use of Calculation Tools: Our website offers a calculator for transportation expenses to help businesses optimize costs during this critical period.

FAQ

Q: How can the increase in costs be compensated? A: Businesses may explore options for optimizing routes, negotiating with suppliers, or exploring specific government support once available.

Q: Does the Canton of Ticino foresee specific interventions? A: At present, no specific interventions have been announced for Ticino, but local companies may benefit from any Italian measures if operating in a border area.

Concrete Examples

For example, a transportation company based in Lugano using a bus to perform a daily route between Lugano and Milan may be affected by a 20% increase in gasoline costs. To compensate for this increase, the company may consider:

• Optimizing the route to reduce gasoline consumption
• Negotiating with the supplier to obtain a lower price
• Exploring specific government support for transportation businesses affected by the energy crisis

Operational Checklist

For transportation businesses and tourists, here is a checklist of actions to take:

• Contact associations for information on government appeals and possible support
• Use calculation tools to optimize costs
• Explore options for optimizing routes and negotiating with suppliers
• Consider the option of using more sustainable transportation means

Practical Scenarios

The most likely scenario is that transportation businesses affected by the energy crisis will try to optimize costs and explore specific government support. However, it is possible that larger and more stable businesses may face the situation without problems, while smaller and more vulnerable businesses may be more severely affected by the energy crisis.

According to Swiss regulations, transportation businesses using commercial gasoline are exempt from the obligation to use high-biofuel gasoline, but may be affected by a 40% increase in gasoline costs. This may be a problem for transportation businesses operating in border areas, where gasoline is more expensive.

Italian regulations, on the other hand, provide that transportation businesses using commercial gasoline are exempt from the obligation to use high-biofuel gasoline, but may be affected by a 30% increase in gasoline costs. This may be a problem for transportation businesses operating in border areas, where gasoline is more expensive.

It is essential to note that the current situation is subject to change, and transportation businesses and tourists should remain updated on developments.

Source: comozero.it