The Land Transportation Franchising and Regulatory Board (LTFRB) clarified that it had not suspended the franchise of a point-to-point (P2P) bus operator plying two routes in Metro Manila as it sought to allay commuters’ concerns.
In a statement, the transport board said it had merely asked Froelich Tours Inc. (FTI) to submit its financial statements before a hearing on March 3 after its provisional authority expired.
Pending the outcome of the hearing, the LTFRB assured the public that it would be adopting measures “to ensure that the riding public [would] be provided with the needed transport service on the routes affected.”
FTI, one of the pioneering P2P operators accredited by transport regulators in 2016, plied the SM North Edsa-SM Megamall and Trinoma-Park Square Makati routes.
Last year, MAN Automotive Concessionaires Corp, a truck and bus importer, asked the LTFRB to investigate FTI’s financial viability after it repossessed 12 of the 17 units purchased by the P2P bus operator.
In total, FTI acquired around P185.7 million worth of bus units from MAN. As of February, it still owed the importer P19.75 million.
The LTFRB’s investigation showed that the FTI’s provisional authority also expired last year and it had yet to file an application for renewal.
The transport board will hear the sides of FTI and MAN on March 3.