Strætó has missed payments on its ticketing system, Klapp, leaving the QR code scanners unusable and in need of replacement.
Kjartan Magnússon, city representative for the Independence Party, has stated that the situation has led to excessive costs for Strætó, which it is not in a position to handle.
Serious mistakes have been made in the adoption and implementation of the new payment system, he said.
Strætó has now had to postpone payment of its bills due to a lack of funds.
According to Kjartan, at an annual meeting of municipal associations, Sorpa, and the Capital Area Fire Department, it came to light that Strætó, Iceland’s public transportation system, is barely operational.
Where annual projections forecast an operational deficit of ISK 93 million, Strætó has actually operated at an ISK 1.1 billion loss just in the first nine months of 2022. The gap between projected and actual losses is significant, and Strætó’s equity has subsequently seen a decrease of ISK 22 million.
Kjartan is quoted in Morgunblaðið as stating: “For a whole year, passengers have received the answer that it was just a growing pain, which would soon be a thing of the past. At the meeting, however, it was stated that the scanners used in the buses would be unusable and the only solution would be to replace them all and buy new ones.”
This will represent significant further costs to an already-struggling transportation system.