Alliance halts bus service

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Alliance Transport Services S.C. has stopped providing public transportation services for commuters starting from February 5, 2019.
The Board Chairman of Alliance Transport Service Adil Abdela told journalists that the disagreement with Commercial Bank of Ethiopia (CBE) about the debt payment system for 100 buses that were purchased in 2015 was the reason they stopped.
The buses were purchased as part of a government initiative to solve the Addis Ababa City transport service problem. However, when the bank wanted the debt paid before the buses began operating it created difficulties.
“The tariff set by the government has affected the company as our service is not determined by the market price,” Adil added.
The 125 Alliance buses transport ten thousand passengers, mostly in Addis and its suburbs like Sebeta, Holeta, Burayu, Sululta, Legetafo and Bishoftu and different routes in the capital city.
The Chairman apologized to customers for stopping the service without notifying people in advance, and hopes the problem is solved very soon as discussions are ongoing with CBE and the Ministry of Transport, Adil said.
The company, which was established in 2009 and has 2, 500 shareholders with 35 million birr in paid-up capital, bought 25 buses, at a cost of 36 million birr, before tax, making Alliance the first and only private city bus company to join the sector.
Currently the buses are parked at the Alliance transport services compound, in Gulele District.
“The discussion with stake holders will be held next week in hopes transport service can soon be restored,” Adil told Capital.