Developing bus operating cost models: A methodology

This paper presents a methodology for developing transit bus cost models to assist in state-level subsidy planning. Aggregate and disaggregate unit cost models for 25 bus companies operating in New Jersey are developed and evaluated. A method is presented for stratifying the bus companies by size of operation, type of service, location, and subsidy status. The stratification process indicated that model accuracy can be enhanced, that diseconomies of scale existed, and, that a carrier's subsidy status did not tend to affect the cost of operation.