Higher revenues, reduced costs reported as VIA launches new initiatives and partnerships

VIA Rail Canada reports second quarter 2011 results

MONTREAL, August 29, 2011 – VIA Rail Canada reported today $69.1 million in revenues for the second quarter of 2011, an increase of four (4) percent over the same period in 2010. Year-to-date revenues were also reported close to $131 million, five (5) percent higher than last year. Revenue growth was achieved for both intercity passenger services in the Québec City-Windsor Corridor, and for long-distance services between Toronto-Vancouver. 

Operating expenses before pension costs and corporate taxes were slightly lower than in the second quarter of 2010. Direct operating costs per available seat mile were reduced by 10 percent compared with the second quarter of 2010. As a result, VIA has reduced its operating deficit before government funding and corporate taxes by close to $2 million for the quarter, by $5 million when including the first quarter.

“Our focus on eliminating waste, increasing productivity and containing costs delivered good results,” VIA President and Chief Executive Officer Marc Laliberté said. “At the same time, we continued to enhance the quality of service we deliver, building better connections with our customers, other passenger services, and the communities we serve”.
 

• On-time performance improved from 81 to 85 percent over Q2-2010. VIA has launched a range of initiatives to increase the efficiency of all operations affecting on-time performance, and adopted a new Connecting Passengers Protocol that focuses on making passenger connections between train services more efficient and ensuring on-time departures wherever possible.
• New partnerships with other service providers, such as GO Transit in the Greater Toronto Area and bus services in Western Canada, provide more integrated travel connection solutions for VIA’s customers.
• VIA launched a new social media strategy, which has already been cited as a good example of how to connect with customers. An enhanced online presence allows VIA customers to contact VIA quickly through forums such as Facebook and Twitter.
• VIA improved internet access for customers using mobile Wi-Fi service on its trains. With more improvements underway, VIA’s service is earning recognition as the fastest mobile Wi-Fi available in the transportation world.

While ridership numbers were slightly down compared to the second quarter of 2010, year-to-date passenger-miles are up by one (1) percent. As VIA continues to make progress on its unprecedented $923 million capital investment program to expand track capacity, modernize passenger facilities and stations, and renew equipment used across the country, the organization expects to see a return in ridership growth along with continued revenue growth and higher productivity in 2011.

“We are focused on delivering the best value possible to all of our customers,” Mr. Laliberté said. “We are on track to make 2011 a pivotal year for passenger rail – and to introduce more trains, more frequent services, and faster trip times in 2012.” 

VIA’s second quarter 2011 financial report is available online at /en/about-via-rail/our-company/quarterly-reports/2011-second-quarter. 

About VIA Rail 

As Canada’s national rail passenger service, VIA Rail Canada’s mandate is to provide efficient, more environmentally sustainable and cost-effective passenger transportation to Canadian travelers, and service in both official languages. Every week VIA operates 503 intercity, regional and transcontinental trains linking 450 communities across its 12,500 kilometre route network. VIA Rail Canada transports over four million passengers annually.

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