RTA extends lifetime of stretch limo to 10 years


Source:  www.rta.ae

The Roads and Transport Authority (RTA) announced the extension of the lifetime of long stretch limousines from 7 to 10 years.

2However, vehicles falling under this bracket have to pass a specialist technical test to determine their operational condition, and assess whether or not they are fit for continuing transit services following the elapse of 7 years from the start of service.

“This decision will encourage investment in stretch limo transit activity and support entities operating in this field. It will also reduce the costs of replacement and renewal as the lifecycle of vehicles in operation is being extended to 10 years instead of 7, which will likely be accompanied by a drop in the rates offered for the service,” said Adel Shakri, Director of Planning & Business Development, RTA’s Public Transport Agency.

“The underlying factor of extending the lifespan of deluxe stretch limos is quite logical judging by the practical business experience. The deprecation rate of this sort of vehicles does not match to the extent of depreciation sustained by ordinary limos or taxis. Stretch Limos are only operated on demand for serving private functions, important events, or VIPs and celebrities.

This means that they remain intact and potentially usable for more than 7 years, and it doesn’t make sense to replace vehicles capable of offering safe operation. Moreover, there are factories specialized in reconditioning and refitting bodies of stretch limos in countries like the US, Australia and the UK, which renders the replacement process more difficult let alone the exorbitant costs payable by operators,” explained Shakri.

“All vehicles deployed in passenger transport services in Dubai are subject to a periodic vehicle replacement policy with a view to maintaining their efficiency & outlook to fit the nature of transit services managed by RTA. Since RTA is keen on offering services capable of improving customers’ satisfaction rating & rising to their expectations, a technical committee has been set up with members from the Public Transport Agency and Licensing Agency to assess the condition of stretch limos after the elapse of 7 years in operation, and subject them to a technical tests to verify their fitness for further operation. More info