Montreal, Quebec, CA. With last week’s news that Alain Ayotte is stepping down as CEO of PBSC and that the company is selling its international arm, the Montreal Gazette is now suggesting that Bixi’s domestic operations may soon be taken over by Montreal’s transit authority, Société de transport de Montréal (STM).
According to the Gazette, STM chair Michel Labrecque said about the prospective procurement, “It could be a natural fit, but there are a certain number of conditions we’re looking at — legal, operational conditions — and there’s a deficit at Bixi.” In 2011, Bixi operated at a $3.3 million loss. The company has yet to release financial statements from 2012.
This news comes on the heels of Tuesday’s announcement that Bixi Montreal will be adding 50 more stations to their system at a cost of $2.4 million this spring. Meanwhile, the company still owes the City of Montreal $32.25 million on a $71 million loan. It remains to be seen who will pay that back if STM is to take over domestic operations of Bixi.