This article presents a systematic procedure for analysing transit networks at the route level and at the system level, based on certain pre-specified criteria using the commonly available information from the transit agencies. Once unproductive routes have been identified, they are reexamined for their inefficiency and possible service modifications. Finally a set of productive routes that minimize the total operating deficit is identified. The applicability of the analytical procedure is developed using a case study example and with the transit network data and travel demand information from a typical medium-sized urban area. The methodology does not necessarily require the UTPS package. Any reasonable route level patronage forecasting model will suffice the demand needs for the TREM program used. The data needs of TREM are simple and should be easily available to any transit agency. TREM is independent of the demand mode, although the model does reflect demand information in its criteria of unproductive route selection.