Taxpayer-owned VIA Rail will see continued steep losses for at least another two years, despite layoffs and service cuts. The railway in an updated Corporate Plan predicted this year’s operating deficit will run to $411 million, according to Blacklock's Reporter..“Demand for travel may only return to or exceed the level seen in 2019 sometime in 2024,” said a Summary Of The 2022-2026 Corporate Plan. “Under such conditions VIA Rail, while continuing to prudently provide needed transportation services to Canadians as it has done throughout 2020 and 2021, will be forced to seek funding.”.In 2021, cabinet approved a $187.5 million bailout to VIA to cover extraordinary pandemic losses in addition to ongoing deficits. “The Crown corporation thinks operations could return to pre-pandemic levels in 2024 but there remains an important risk this assumption may not materialize,” wrote management..The railway acknowledged “poor on-time performance,” continued use of rail cars “65 years old and older” and job cuts. VIA from pre-pandemic levels cut its payroll from 3,234 to 2,763 employees, a 14.5% reduction, said the Corporate Plan..“Financially the company has stretched itself in the past few years to grow revenues, contain the operating deficit and the reliance on government funding and improve on the cost-recovery ratio,” said the report tabled in Parliament. “However due to the COVID-19 crisis VIA Rail’s financial performance was significantly affected.”.The Department of Transport in a 2021 submission to the Senate national finance committee said VIA was years away from recovery. “We are working closely with VIA Rail and the Department of Finance to ensure their variables, the revenue projections, are well understood,” testified Ryan Pilgrim, chief financial officer for the transport department..Transport Minister Omar Alghabra in testimony last May 30 at the House of Commons transport committee said there was no question of “privatization of VIA.” No committee member asked if cabinet was considering selling the Crown railway in operation since 1978..VIA lost $370.5 million in 2021 and $415.8 million in 2020. Ridership was less than a third of pre-pandemic levels, from a total five million passenger trips to 1.5 million..Cynthia Garneau, the railway CEO, abruptly resigned without comment last May 20 only days before VIA issued its audited financial statements. “That is a human resources matter,” said Minister Alghabra. “It is a privacy matter.”.The updated Corporate Plan shows the railway continues to provide generous executive pay despite VIA layoffs and operating losses. The CEO pay scale is up to $529,280 including 28% bonuses with an additional $45,000 in executive perks like “sport club memberships” and a car allowance.
Taxpayer-owned VIA Rail will see continued steep losses for at least another two years, despite layoffs and service cuts. The railway in an updated Corporate Plan predicted this year’s operating deficit will run to $411 million, according to Blacklock's Reporter..“Demand for travel may only return to or exceed the level seen in 2019 sometime in 2024,” said a Summary Of The 2022-2026 Corporate Plan. “Under such conditions VIA Rail, while continuing to prudently provide needed transportation services to Canadians as it has done throughout 2020 and 2021, will be forced to seek funding.”.In 2021, cabinet approved a $187.5 million bailout to VIA to cover extraordinary pandemic losses in addition to ongoing deficits. “The Crown corporation thinks operations could return to pre-pandemic levels in 2024 but there remains an important risk this assumption may not materialize,” wrote management..The railway acknowledged “poor on-time performance,” continued use of rail cars “65 years old and older” and job cuts. VIA from pre-pandemic levels cut its payroll from 3,234 to 2,763 employees, a 14.5% reduction, said the Corporate Plan..“Financially the company has stretched itself in the past few years to grow revenues, contain the operating deficit and the reliance on government funding and improve on the cost-recovery ratio,” said the report tabled in Parliament. “However due to the COVID-19 crisis VIA Rail’s financial performance was significantly affected.”.The Department of Transport in a 2021 submission to the Senate national finance committee said VIA was years away from recovery. “We are working closely with VIA Rail and the Department of Finance to ensure their variables, the revenue projections, are well understood,” testified Ryan Pilgrim, chief financial officer for the transport department..Transport Minister Omar Alghabra in testimony last May 30 at the House of Commons transport committee said there was no question of “privatization of VIA.” No committee member asked if cabinet was considering selling the Crown railway in operation since 1978..VIA lost $370.5 million in 2021 and $415.8 million in 2020. Ridership was less than a third of pre-pandemic levels, from a total five million passenger trips to 1.5 million..Cynthia Garneau, the railway CEO, abruptly resigned without comment last May 20 only days before VIA issued its audited financial statements. “That is a human resources matter,” said Minister Alghabra. “It is a privacy matter.”.The updated Corporate Plan shows the railway continues to provide generous executive pay despite VIA layoffs and operating losses. The CEO pay scale is up to $529,280 including 28% bonuses with an additional $45,000 in executive perks like “sport club memberships” and a car allowance.
