CIÉ is to increase fares, reduce the frequency of its services, and withdraw some routes altogether, after sustaining massive losses.
Minister for Transport Noel Dempsey told the Dáil that the company will make a deficit of €39m this year, compared with just under €1.5m in 2007.
He said the loss was a 'significant deterioration' and was due to a drop in revenue, increased costs and higher fuel costs in the early part of the year.
He said each company in the CIÉ group, including Dublin Bus and Bus Éireann, will have to increase fares and rationalise services.
