The distinction is sort of moot. It depends on how you do the contract. You can contract out the capital cost as well. There are different models for contracting for the services. In some of them, the municipality owns the rolling stock and the company just provides the management and drivers. In other cases, you can contract out the capital risk as well, and the private company buys the buses and brings them to the table. It's not just a capital and operating issue; it can be both.
On October 19th, 2011. See this statement in context.