Financial Services, Latvia, Transport

The previous system of paper tickets cost the company LVL 6.8 million last year, whereas the annual costs of the electronic ticket system stand at LVL 5.5 million, informs LETA.

The new system means not only a reduction in costs but also more convenience. For instance, when the Riga City Council ruled on discounts for unemployed retirees, Rigas satiksme was able to implement the changes within a short period of time.

Bemhens also said in the interview that the number of passengers in Riga is decreasing – all the carriers have to deal with an average 20-30% decrease in passenger turnover.

The economic crisis and the increasing unemployment have changed the passenger flows in Riga – people do not need to use transport as much and as often, and there are fewer passengers in peak hours, as fewer people are going to work now.

Bemhens went on to say that Rigas satiksme is planning to take a number of measures to reduce the LVL 15.5 million budget deficit projection this year – the discounts system will be altered and significant changes will take place within the company: administration costs will be cut and salaries will be reduced, starting September 1.