Even after the coronavirus outbreak, a bus company in Higashimurayama, Tokyo, is facing a crisis of survival. Continuing to run route buses at the request of the government during the coronavirus pandemic caused a deterioration in profitability. The company’s president, Hiroaki Yamamoto (60), bit his lip and said, “We worked hard to operate the train even during the coronavirus pandemic, but there was almost no support. I feel like we have been forgotten by the world.” (Okamoto Futoshi)
President Hiroaki Yamamoto decided to sell buses to secure working capital for the year-end and New Year holidays.
◆Continuing to operate in accordance with requests even though passengers have drastically decreased due to the coronavirus pandemic
Galaxy Railway, which operates two routes in Higashimurayama, Kodaira, and Kokubunji cities, was founded 24 years ago by Yamamoto, who has loved buses since he was a child. Both lines are used by approximately 2,300 people a day for commuting to school, work, shopping, hospital visits, etc.
Profitability for route buses is difficult, and the company has made up for the deficit with profits from its chartered tour bus business. However, due to the coronavirus pandemic, charter buses are rarely used, and the number of passengers on route buses has dropped to 20% of the usual number.
Under its basic response policy when a state of emergency is declared, the government requests public transportation such as buses to continue operations in order to “maintain social stability.” Considering the bottom line, it was clear that it would be better to stop operating the train, but he continued running, saying, “If it’s for the good of the world,” he said.
Mr. Yamamoto took advantage of virtually interest-free, unsecured zero-zero loans for small and medium-sized businesses, as well as tax payment deferrals. He was thinking, “After we get through the coronavirus pandemic, let’s go on the offensive.”
However, starting around the fall of 2022, the response of tax offices and pension offices, which had been flexible about the timing of tax and social insurance premium payments, changed. The monthly payments required nearly doubled, and the company’s financial situation suddenly became tighter.
◆Rising fuel costs will add to the impact, leading to financial difficulties again in spring
In 2023, the situation worsened due to rising fuel costs. In order to secure working capital for the year-end and New Year holidays, they decided to sell three of the 10 buses they owned that were being used for private use.
We have consulted with Higashimurayama City and other institutions regarding the continuation of route buses, but there has been no movement toward support. In the current situation where people are required to pay taxes and other taxes that had been deferred, their income cannot keep up with the payments. Even if the bus is sold, there is a high possibility that the company will run out of funds again in a few months, sometime this spring.
President Hiroaki Yamamoto sees off the sold bus in Higashimurayama City, Tokyo
During the coronavirus pandemic, subsidies were provided to restaurants that complied with requests to close, and employment adjustment subsidies were provided to companies that reduced their operations, but the company is not eligible for either. Mr. Yamamoto was at a loss for words, saying, “We did our best to run the buses in accordance with the government’s requests, even during the coronavirus pandemic, but we had to suffer so much.”
Christmas was December 25th last year. Two sold buses were removed from the company’s bus waiting area in Higashimurayama City. In order to send the driver off in formal attire, Yamamoto wore a driver’s uniform and continued waving until the vehicle was no longer visible. “I’m disappointed, but there’s nothing I can do about it. I’m going to run the remaining bus until the very end, even if I’m all alone.”
Route buses during the new coronavirus pandemicAccording to the Transportation Policy White Paper, 99.6% of route bus operators nationwide fell into the red in fiscal 2020 during the coronavirus pandemic. Since then, a combination of factors such as a decline in the number of passengers, rising fuel costs, and a shortage of drivers have led to a series of reductions or cancellations of routes across the country, which is having an impact on the transportation of elderly people and rural areas. According to a survey by Teikoku Databank, 98 companies, or 77%, of 127 major route bus operators reduced their frequency or abolished routes in 2023. Even in the Tokyo metropolitan area, flight reductions and cancellations are noticeable, especially on routes connecting suburbs and early morning and late night flights.
2024-01-01 21:00:00
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