After carriers' protest, government allocates extra €9.85 million for public transport

A protest organized by the Latvian Passenger Carriers Association (LPPA) this week involved eight companies: Daugavpils autobusu parks, Hansabuss Latvija, Talsu autotransports, Rēzeknes autobusu parks, Norma-A (operating under the Ecolines brand), Liepājas autobusu parks, Nordeka, and Dautrans. Before the protest, estimates suggested up to 3,000 trips could be cancelled, affecting as many as 60,000 passengers. Meanwhile, CATA, Latvijas sabiedriskais autobuss, Ventspils reiss, and Valmiera VTU continued operating their routes.

Jānis Lapiņš, chairman of the Road Transport Administration (ATD), said that contractual penalties for unfulfilled trips could exceed €100,000 for some of the companies that took part in the protest.

Reasons behind the protest

LPPA president Ivo Ošenieks has explained that carriers organized the protest because no solution has been reached for a long time regarding indexation of long-term contracts and compensation for rising costs. According to the association's calculations, fuel prices have risen by more than 60% and overall inflation has reached 38.1% since the contracts were signed, prompting carriers to demand a revision of contract terms and cost compensation.

The government's response

On Tuesday, September 15, the Cabinet of Ministers reviewed a report prepared by the Transport Ministry on the additional funding needed for public transport services in 2026 and allocated an extra €9.85 million. The funds are meant to ensure fulfillment of existing service contracts, preserve the regional route network at its 2025 scope, and maintain continuity of public transport services through the end of 2026.

LPPA does not consider this decision a solution to its demands, arguing the money is needed to cover costs of already state-commissioned transport services for this year, for which the budget did not initially provide sufficient funding.

The Transport Ministry says it is working with the ATD, the Public Transport Council, and industry representatives on solutions to stabilize the situation, including possible improvements to existing contracts. According to the ministry's estimates, resolving the sector's funding problems would require roughly an additional €15 million. In the longer term, the ministry plans to review the public transport financing model and route network, develop demand-based transport services, introduce a unified ticketing system, and improve the use of passenger flow data. Carriers are considering another protest on September 30 if their demands remain unaddressed.