The Prague Post
http://www.aaaradiotaxi.cz/index.php?xSET=lang&xLANG=2
July 5th, 2008
Reader's SurveyNEW     Endowment Fund     Book of Lists ONLINE      Reservations      Classifieds    Subscriptions
Prague accommodation
Prague Art & Antiques Prague Art Prague Antiques

Home » Archives » Business

10 Questions

with Milan Tuháček
10 Questions | Search restaurants | Archives

By František Bouc
Staff Writer, The Prague Post
January 31st, 2007 issue

COURTESY PHOTO
Milan Tuháček says that the newly collected electronic tolls should go toward improving roads.
The introduction of tolls on select Czech roads has caused little joy for truckers and transportation companies. Some have begun to explore ways of ducking the toll — for example, by driving on toll-free side roads or trying to cheat the system. But, for most bus companies that run on set lines, such practices are out of the question. Milan Tuháček, general director of Bohemia Euroexpress International, talks to The Prague Post about the impacts of the toll introduction on bus companies. He also discusses whether trucks and buses should pay the same toll fees.
➊ Many truckers and transportation companies have been struggling with the newly launched e-toll system. Does it make life difficult for you?
Like with other transportation providers, the introduction of toll increased our costs. In the case of bus transportation, it’s been reflected in the prices of tickets.
➋ Is it fair that the same toll rate is being charged for heavy-load trucks as for buses?
The fairness of such a toll system should rather be a concern for the particular authorities who opted for it. For a long time, the introduction of tolls on Czech roads was advertised as a measure just affecting truckers, and then the duty to pay the toll was eventually extended to buses. As a result, this led to an increase in ticket prices. This would only be all right under the condition that the collected money was used for improving quality and servicing of roads.
➌ Some truckers are driving on side roads in order to bypass the tolls. Do you let your drivers choose their own routes or do they have to follow preset road maps?
The Tuháček File
  • Job title: General director, Bohemia Euroexpress International bus company, which operates Eurolines coach service in the Czech Republic
  • Age: 42
  • Nationality: Czech
  • Education: Studied transportation economics at the University of Economics in Prague
  • Family: Married, one son
Ninety percent of our drivers are on regular lines, and they have precise itineraries. So it is virtually out of the question for them to bypass the roads where the tolls are.
➍ The reason many truckers do all they can to avoid paying tolls is that the saved money is then reportedly given to them as bonuses. How would you respond to such motivation?
I cannot comment on behalf of truckers. As far as our company is concerned, I can declare that we have no such system.
➎ After the launch of the e-toll, some bus companies began considering the introduction of smaller and lighter buses that would not need to pay tolls. Could this solution spread on the market?
Smaller and lighter buses can be introduced for shorter-distance domestic and commuter routes. For longer distances and also international routes, however, it’s important to keep some standards of transportation, so the introduction of such buses is rather unlikely. Furthermore, when we compare the cost of those buses with potential revenues from running them, we can conclude it wouldn’t pay off anyway.
➏ Bus companies have led competitive pricing battles in order to attract local customers. Will the e-toll factor be a big blow to this strategy?
It’s apparent that the introduction of the toll increased costs for all transportation companies; it affects all of us in the same way. As far as we’ve been informed, no bus company has such a large reserve of funds that it could ignore the increased costs. As a result, we increased prices of our tickets Jan. 1, and most other companies followed at some point or another in January.
➐ One of your competitors, Student Agency, recently announced that it would expand its service portfolio to include accommodation and tourist services. Is this a sign that the bus transportation market has been saturated?
Personally, I do not perceive Student Agency’s decision to expand to other market segments within the tourist industry as a sign that coach transportation has reached its peak, and we are not considering any similar expansion.
➑ Following the ongoing promotion of rail transportation in Europe and the European Commission’s approval of financial subsidies to various national airlines, do you think there is discrimination against road transportation in Europe?
It’s hard to say whether there’s some discrimination. On the other hand, it’s clear that bus transportation does not enjoy any special support.
➒ How would you respond to the statement that road transportation is the most dangerous form of transportation, and is also becoming just as expensive as the others?
I don’t think bus transportation is on a comparable price level with, for example, air transportation. Marketing campaigns of airlines may create the impression that air tickets are comparable to bus tickets. But when one carefully examines total average prices, coach transportation is cheaper.
As for the safety, road transportation has been statistically the least safe form of transportation. But those statistics are often affected by the high rate of car and truck accidents. Serious accidents involving buses are rather rare.
➓ What do you consider the biggest opportunities for and threats to your industry?
Bus companies pose the biggest threat to themselves as more and more new players enter the market. Another threat is the high tax burden imposed on bus transportation. There are also threats that bring about opportunities. For example, the rise of oil prices can be a threat, but it can also make people step out of their cars and board buses.

František Bouc can be reached at fbouc@praguepost.com


survey banner


Other articles in Business (31/01/2007):

Browse the Current Issue

If you enjoyed this article, why don't you subscribe to the print version!
We accept secure online transactions provided by PayPal and Moneybookers

Be the first to add a comment!


Full Name: *
City: *
E-mail: **
This comment can be published in the print version of The Prague Post
Enter the text on the right:
 visual captcha
Comment: *
* Required field. In order to be approved for display, comments must have a first and last name and a city.
** E-mails are required and will only be used for internal purposes.

Most visited in Book of Lists

Hotel booking
The Prague Post Online contains a selection of articles that have been printed in
The Prague Post, a weekly newspaper published in the Czech Republic.
To subscribe to the print paper, click here.
Unauthorized reproduction is strictly prohibited.