Earlier quoted context omitted.
Spot-on analysis. I agree that transport should operate on a basically break-even basis, but offset in two ways: 1. Where the Government wants to subsidize some group (e.g. help the disadvantaged by giving them discounts) they should pay the fair price to the transit agency out of the budget of Welfare, not drag on the financials of the transport agency. In other words, it shouldn't be possible that the transport age…
Incidentally, London has a "Freedom Pass" (free transport for retirees), which is funded in the way you describe. Instead of TfL being forced to take the loss, they are reimbursed by local government cost of the transport. As an aside, I also take some issue with this pass being completely free to use. In my experience, people end up using it to go a single stop just because it's free, so why not -- which slows bus s…
To liken this back to the old days - the difference in time between flashing a valid transfer slip (of paper) and having to drop change into the automated till.