Even the subsidized 285 Euro price you pay for a yearly pass could have afforded multiple rides nearly every day paying per ride at those rates.
Reminds me of the switch from streetcars to cars - who in their right mind would want to start polluting the city? Maybe back then the air quality was atrocious anyway because of all the inner city industry and heating.
Austria currently has streetcars in Graz, Linz, Vienna, Gmunden and Innsbruck. The only lines that is growing are Linz?
On the other hand we lost Baden, Dornbirn-Lustenau, Ebelsberg-St. Florian, Klagenfurt, Salzburg, St. Pölten, Unterach–See and Ybbs. Most of them to buses and cars.
(Joke explainer for the non-Scots: Edinburgh began building a street-car (tram) system some years ago, massively over budget and a huge political mess, it is now as good as shelved. There is one tram but it doesn't move, but you can look at it if you want to).
Someone on Wikipedia made a map that illustrates the original plans vs. what has actually been built. http://commons.wikimedia.org/wiki/File:Edinburgh_tramway_map...
Here in Europe, public transport is not done by privately owned companies, but by the Cities themselves. So the city is very interested in keeping them running.
And it can also keep the fares low by tax subsidies. For example, here in Linz (AT), I only pay €285,00 instead of €444,34 for an annual ticket, because the city of Linz pays the rest for its residents.