Las Vegas monorail company files for bankruptcy
Written by William C. Vantuono, Editor-in-ChiefThe Las Vegas Monorail Co., though formed as a not-for-profit company, filed Wednesday with federal bankruptcy court due to falling ridership, attributed to the economic recession. The company oversees the roughly 4-mile elevated service connecting hotels on the Las Vegas Strip withthe Convention Center.
Since the overwhelming majority of North American public transit operations rely on some form of government support, the bankruptcy may be a telling indicator of how "private-sector" options, often advanced by those opposed to government support for rail and public transit, may nonetheless be vulnerable to fluctuations in economic conditions.
"The decline in the monorail’s operations is tied directly to the decrease in gaming revenues in Nevada, and particularly along the Las Vegas Strip," Chief Executive Curtis Miles said in the courtfiling.
Las Vegas Monorail’s largest creditor is Bombardier Transportation Inc., according to the court filing. The monorail owes $293,450 to Bombardier, which operates and maintains the trains. Other creditors listed in court documents include NV Energy, Allegiance Direct Bank, and Anthem Blue Cross Blue Shield.