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How to Cut Fares to the New Airport

IP-16-1993 (October 20, 1993)
Author: Jack McCroskey

PDF of full Issue Paper
Scribd version of full Issue Paper

Sixteen dollars for a one-way trip to Denver’s new International Airport? That’s what RTD says it needs to cover costs. But $16 seems much too much. It’s more than many travelers can afford, and more than others will tolerate. Virtually everyone, including RTD, agrees the proposed fares ought to be reduced. The tough question is how to go about actually delivering the lower fares everybody wants. By increasing subsidies? Restructuring service? Cutting costs?

In this Issue Paper, we consider each possibility, and conclude that the cost-cutting approach is by far the best approach to take. It is doable; it is inexpensive; and it will work out better than the other approaches with regard to travel time and customer convenience.

1) Higher subsidies might be a way to go, but where on earth would the money come from? Trying to raise taxes in today’s political climate is like trying to raise bananas on the top of Pike’s Peak. Ridiculous.