so i can tell you from an example why private companies exist that do things that are typically done by public companies … here in austria, there’s a railway operator called WestBahn. They provide passenger trains on the route from vienna to innsbruck (roughly). That’s the only route that they service. Why do they do it?
because it’s one of the most provitable routes in all of austria. it has many, reliable passengers. servicing that route turns a profit. servicing many other routes, for example bus lines in some remote village, is still necessary, but obviously doesn’t turn a profit as it has maybe 3 passengers at a time.
so, they pick the 1 route that’s actually very profitable, only service that, and leave every other route to the state-owned alternative. that’s what’s happening.
so i can tell you from an example why private companies exist that do things that are typically done by public companies … here in austria, there’s a railway operator called WestBahn. They provide passenger trains on the route from vienna to innsbruck (roughly). That’s the only route that they service. Why do they do it?
because it’s one of the most provitable routes in all of austria. it has many, reliable passengers. servicing that route turns a profit. servicing many other routes, for example bus lines in some remote village, is still necessary, but obviously doesn’t turn a profit as it has maybe 3 passengers at a time.
so, they pick the 1 route that’s actually very profitable, only service that, and leave every other route to the state-owned alternative. that’s what’s happening.