Quote:
Originally Posted by YOWetal
The idea the corridor was some big cash cow subsidizing the rest of the network isn't true.
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If the Corridor doesn‘t recover enough of its costs to subsidize the remaining network, then how do you explain that VIA‘s overall subsidy need decreased (rather than increased!) between 2014 and 2019 (as shown in the respective Annual Reports), as its Corridor schedules expanded:
• Train miles increased from 6.16 to 6.93 million (+12.5%)
• Passenger-miles increased from 832 million to 1.055 billion (+26.8%)
• Revenues increased from $280.3 to $411.1 million (+46.7%)
• Operating expenses increased from $597.4 to $691.8 million (+15.8%)
• Operating deficit decreased from $317.1 million to $280.7 million (-11.5%, or -17.6% if adjusted for inflation)
We can note from the above that as VIA’s output (i.e., train miles operated) increased by 12.5%, its ridership (+27%) and revenues (+47%) rose much faster than its costs (+16%), thus decreasing the overall subsidy needs.