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JR East wants to review loss making local lines


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Lumbago

This happened before. The main JR companies disposed of money-losing local lines by strong-arming local governments to take them over as what are euphemistically referred to as “third-sector” railways. These are financed by local governments with occasional private sector participants. The JR companies improve their balance sheets.

 

In a similar vein, the JNR debt of over 100 billion dollars was merged into Japan’s general government debt, and presto, the taxpayer is on the hook. Ask any Japanese person who is into trains if the debt is still around and they’ll say this - “Nope, they’re debt-free.”

 

Creative accounting - gotta love it.

Edited by Lumbago
Clarity
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