The distinction between commercial and non-commercial bus services in Germany
German public transport services by bus are characterised by a regulatory framework that distinguishes between commercial and non-commercial services.
published in: Transport Policy 01/2012
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.
We show that the classification of services is determined in large part by the authorities that set minimum quality standards. Our analysis shows that the authorities awarding the contracts in some cases affect market organisation significantly depending on how they make use of this power. Furthermore, market organisation differs substantially with respect to the awarding structure and the contractual relationships, thus creating a challenge for operators and authorities in an embryonic market.
A direct link to the journal article can be found here.