Vegas Monorail's Future in Jeopardy

vegasrocks · #1 05-04-2011, 12:32 AM

This isn't good news. The future of the monorail in Las Vegas is uncertain. They are considering filing for bankruptcy reorganizationto erase over 90% of it's $658.8 million dollar debt.

However, the bankruptcy plan is controversial and will got to court later this month.

Quote:

Attorney Bruce Woodbury, a director of the nonprofit monorail told the Journal that the plan "reflects a lot of the concerns of the creditors." The question is whether the monorail, which runs behind much of the Strip from the Sahara (due to close mid-month) to the MGM Grand but does not yet extend to the airport, can turn a profit. Rides cost $5 a pop or $12 for a day pass, but its range is limited. The paper says the number of passengers has dwindled.

They are looking into possibly expanding the monorail and it's stops including running it to the airport.

It would be a shame for the monorail to not be available. It's a cheap and safe form of transportation in Las Vegas.

Danny · #2 05-09-2011, 07:56 AM

I really hope they'll make it. I use the Monorail every day when we're visiting Vegas.

VegasLuvsMe · #3 05-09-2011, 03:05 PM

I'm with Danny on that thought...

They should make loads of money if they extend the monorail to the airport.

I think charging $5 to get to the Las Vegas strip from the airport would bring in a lot of people and extra revenue to keep the monorail moving.

I wonder why they haven't done that earlier?

My guess is that the cab drivers would get sorely upset if that happened.

Danny · #4 05-10-2011, 07:31 AM

Found this message on another forum, but I don't tells us the source:

Several hotel and casino owners on the Strip continue to support the project, and are more supportive of an extension to the airport than one to downtown Las Vegas. The airport extension will be built with private funds and is expected to be built by 2012

VegasLuvsMe · #5 05-10-2011, 01:48 PM

Right on!

I guess whoever funds the monorail from the Las Vegas Airport to the Strip will be making the revenue from that project.

I'm sure the funds are coming from the larger casinos, like MGM Grand and possibly Harrah's. They could make a little extra side-revenue from it.

Danny · #6 07-04-2011, 01:53 PM

Found a message from June, 21st.

Las Vegas Monorail wins bankruptcy court permission to seek vote on plan
(via Bloomberg) · June 21, 2011 · 5:48 PM

Las Vegas Monorail Co., the bankrupt nonprofit company that proposed paying bondholders about 9 percent of the $500 million they are owed, won court permission to send its reorganization plan to creditors for a vote.

VegasLuvsMe · #7 07-05-2011, 02:01 PM

Thanks for the update Danny.

So it could go either way then?

If they get their way they can get a bank loan to make it work, or get shut down if not.

That is a risky business and would take away a lot of profits from the local workers; cab companies and shuttle buses.

Plus the fact that if not many people use this new system; what would become of it?