The cost running after 12:30 exceeds the fare box takings, so no service. I wouldn't personally travel on the red line at 2am, its scary enough at 10pm. Veoila have a contract which does not require service after 12:30 but allows they the option to run later if they wish.
If we lived in a proper country the state would subsidize the service, subsidy in Ireland is among the lowest in Europe so you can't get the world class service unless you are willing to pay. Luas gets ZERO revenue support, Dublin Bus gets the lowest subsidy of any capital city in Europe.
Given the nature of Dublin a bus service is the best option to provide a late night service, its cheap, its flexible and it has sufficient capacity to meet demand
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