Demise
Unlike the TranzAlpine and TranzCoastal services, the Bay Express primarily relied upon local point to point traffic and as a result was placed under increasing pressure by the continued real drop in airline ticket prices over the 1990s, and the price of owning and operating private cars. The travel time of the Bay Express was uncompetitive compared with both air and car travel (five hours thirty minutes on average by rail compared to one hour by air and four hours by car). Long distance coaches had similar travel times and typically cheaper fares for the budget conscious traveller.
Following significant changes in management within Tranz Rail, a bottom up review of the business indicated that the Bay Express was not a financially sustainable service. By 2001, roughly 45 passengers were riding the Bay Express per trip, and it was proving to be unprofitable. Subsidies from the central government or other bodies were not forthcoming, and despite protests against cessation and proposals on how to improve ridership, the cancellation of the Bay Express was announced, effective 8 October 2001.
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