You gotta know when to hold em…know when to fold em…Earlier this week the Las Vegas Sun is reported that the Las Vegas Monorail has filed for Chapter 11 bankruptcy protection Wednesday, Jan. 13, 2010. The Monorail will continue to operate during this time. And now plans to expand to the airport (which would be awesome) have been stalled in the station while the bankruptcy proceedings move forward.
In a statement, President and Chief Executive Curtis Myles said the system has suffered as fewer people have visited Las Vegas.
“The current economic downturn, including a 30 percent decline in convention traffic to Las Vegas, has increased the financial strain on the Monorail, like it has with every other tourism-dependent Las Vegas company,” Myles said. “Despite these challenges, the Las Vegas Monorail generates sufficient revenue to pay its operating expenses as well as a portion of its finance costs, and that will make it possible to restructure the company’s debt through the Chapter 11 process.”
Unlike most major transit systems, the Las Vegas Monorail has not taken any federal, state or local money to build the system. The monorail owes between $500 million and $1 billion and has about $50-100 million in assets.
For the geeks out there, this month’s CES only had about 145,000 riders total over the 4 days of the electronics show.
I went to Las Vegas for the first time about two years ago and rode the Monorail each day to the convention center. I found the price of $5/ride to be a bit high. It was a pretty neat ride — especially how it snaked around the hotels.