At its peak, the MMTC operated several bus routes in Metro Manila. It was most well known for its Love Bus and double-decker bus routes.
History
After World War II, the pre-war tranvía streetcar system in Manila was left destroyed, leaving a gap in the city's public transport infrastructure that was subsequently filled by buses and jeepneys. This, however, resulted in a fragmented public transportation system in Manila and its suburbs dominated by independent transport operators who competed against each another, resulting in inadequate services.[3][4]
During the martial law period under Ferdinand Marcos, efforts were made to address the problem, as Marcos issued Presidential Decree No. 492 on June 27, 1974, which established the Manila Transit Corporation (MTC), a government-owned and controlled corporation. The MTC would serve the role of integrating all public transportation operations in the region under a single corporate entity, thereby streamlining services and eliminating the issues caused by the proliferation of independent transport operators.[4]
On November 7, 1975, Marcos issued Presidential Decree No. 824, establishing Metro Manila and the Metropolitan Manila Commission.[5] Following this, on December 25, 1975, the MTC was renamed as the Metropolitan Manila Transit Corporation (MMTC) and its focus was expanded to cover the newly-created metropolitan area through the issuance of Presidential Decree No. 860. The decree also exempted the MMTC from regulation under the Public Service Act.[6]
That same year, the Love Bus was launched by the MMTC. It was popularized as the first air-conditioned bus service in the country, as well as its strict observance of timetables.[3] By May 1977, the Love Bus had carried over 5.34 million passengers, with a study in February 1976 stating that 19 percent of its passengers used to commute by car.[7]: 62, 64
On March 20, 1985, Marcos issued Executive Order No. 1011, creating the Land Transportation Commission (LTC) as an attached agency of the MOTC. The order removed MMTC's exemption from regulation, placing it under the authority of the LTC.[8]
At some point in the 1990s, the Love Bus was discontinued due to significant losses incurred by MMTC.[citation needed]
Privatization and dissolution
Following the People Power Revolution, which led to Marcos' resignation, the subsequent Aquino administration shifted the government's focus towards deregulating and privatizing the transport sector and disposing of state-owned bus operations, particularly those of MMTC.[9]
During the Ramos administration, a study group was created in 1994 to formulate a plan to privatize the MMTC.[10] After multiple unsuccessful attempts to liquidate MMTC, the company was eventually sold to its blue-collar employees in March 1995. Its buses were then acquired and operated by four groups formed by the former employees:[11][2]: 7-3
United Workers Transport Corporation
Drivers, Conductors, Mechanics (DCOMMP) Multi-Purpose Transport Service Cooperative
Filcomtrans
Fastrans
MMTC retained a skeletal workforce of 12 employees and focused on asset liquidation, auditing the four groups operating its former buses, and collecting outstanding payments from prior obligations.[2]: 7-3
After the company had completely ceased operations, its northern terminal and garage on the corner of North Avenue and Mindanao Avenue in Quezon City was demolished and returned to the National Housing Authority (NHA).[2]: 7-3. The area of that property was then developed in a joint venture between Ayala Land and the NHA into Vertis North.
Its 3,593-square-meter (0.3593 ha) southern terminal in Taguig[7]: 62, 64 was demolished and returned to Food Terminal Inc. (FTI), which leased the lot and much of the area to the Shoppers Paradise FTI Corporation in the 2000s,[12] then sold most of the area to Ayala Land in 2012, developing most of the area into Arca South.[13]
Fares
In 1984, both ordinary buses and double-decker buses had a fare of ₱0.80 (equivalent to ₱8 in 2021) for the first 4 kilometers (2.5 mi) and ₱0.21 (equivalent to ₱2 in 2021) for each succeeding kilometer. Limited buses operated on a flat rate system with a fare of ₱0.70 (equivalent to ₱7 in 2021) per zone with a special fare of ₱1.85 (equivalent to ₱18 in 2021) per zone.[14]: 6-2
The Love Bus also similarly operated on a flat rate system. In 1979, the fare was set at ₱2.50 (equivalent to ₱56 in 2021).[15] By 1984, this amount had increased to ₱5.50 (equivalent to ₱52 in 2021).[14]: 6-2 By 1990, it had risen to ₱8.50 (equivalent to ₱44 in 2021).[16]: 88
Routes
According to the 1984 JUMSUT report made by the Japan International Cooperation Agency, MMTC was the operator of 54 ordinary bus routes, 28 air-conditioned bus (Love Bus) routes, five limited bus routes, and three double-decker bus routes.[17]: 78-82
Of the 28 Love Bus routes, 27 were considered intra-city routes and one was considered an inter-city route.[19] The first Love Bus route was launched between Escolta and the Makati CBD in 1976 and was its most profitable route.[3]
The MMTC operated several types of buses, each with varying specifications. The ordinary and limited buses were 2.5 m (8.2 ft) wide, 3.3 m (11 ft) high, and 11.0 m (36.1 ft) long. The ordinary buses had a seating capacity of 59, while the limited buses had 58 seats. The double-decker buses measured 2.5 m (8.2 ft) in width, 4.7 m (15 ft) in height, and 11.0 m (36.1 ft) in length, and had 100 seats. The Love Bus measured 2.5 m (8.2 ft) wide, 4.7 m (15 ft) high, and 10.0 m (32.8 ft) long, with a seating capacity of 54.[14]: 6-2
The Love Bus formerly ran on a fleet of air-conditioned buses that had a monocoque body design, which was considered a significant milestone at the time as before 1975, all buses in the Philippines were flatbed trucks mounted with wooden bodies. Its former fleet initially consisted of buses made by industry giants Hino, Mercedes-Benz, and Volvo, then expanded into then-lesser known brands such as Ford, Fiat, and four other companies. The Love Bus had also operated double-decker buses, being the first company to do so in the Philippines.[3]
The 1984 JUMSUT report estimated that there were 40 double-decker bus units, 370 Love Bus units, and 100 limited bus units in operation as of February of that year.[14]: 6-2
In the aftermath of the 1989 Philippine coup attempt against the Aquino administration, bus operators JD Transit, Inc. and DM Consortium Inc. ceased operations, causing disruption to bus services. In response, President Corazon Aquino issued Memorandum Order No. 267 on December 7, 1989, directing the Department of Transportation and Communications to temporarily direct or take over the operations of the two transport companies.[20][21]
On December 9, 1989, MMTC repossessed DMCI's buses, occupied its offices, and attempted to auction off 228 repossessed buses that it was leasing from MMTC, alleging that DMCI had defaulted on its amortization payments. DMCI responded by filing for a temporary restraining order against the public auction, which was granted on April 11, 1990.[21]
MMTC filed a motion for reconsideration and a petition for certiorari, but these were denied by the courts. In 1995, the Regional Trial Court ruled in favor of DMCI, finding no legal basis for MMTC to repossess the buses or sell them at auction. Both MMTC and DMCI filed motions for reconsideration, with MMTC arguing it was justified to do so under a lease-purchase agreement, while DMCI argued that MMTC did not ensure just compensation as required by MO No. 267. DMCI also sought damages, claiming the buses had deteriorated during the prolonged legal battle.[21]
In 2001, the Court of Appeals upheld the decision against MMTC and ordered additional compensation, including ₱2 million for DMCI’s offices. MMTC appealed to the Supreme Court, contesting the ruling on the repossession and the ₱2 million compensation. The Supreme Court denied MMTC's appeal in 2007, affirming the Court of Appeals’ decision.[21]