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Originally Posted by Truenorth00
Did you ask why he didn’t want it competing with airlines?
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No I didn't. I expect is is as
J.OT13 said and it is because politicians are lobbied by airlines. It also doesn't look good having a subsidized crown corporation compete head to head with private industry.
In general I agree with this. The airlines wouldn't just let VIA Rail take over a portion of their market but would try to compete head to head with a price war. This would be much more harmful to VIA than it would be to the airlines as service between Toronto-Ottawa-Montreal is only a small percentage of the airlines revenue but it is a huge percentage of VIA's revenue.
Competing with driving doesn't have that same effect. A reduction in the number of people driving between those cities would have a minuscule effect on auto sales and an extremely small effect on gasoline sales.
Trying to compete with driving rather than flying makes economic sense for VIA as well. As previously mentioned, on pg 13 of the
Winter 2016 issue of Interchange it says, "87 per cent of travel between Ottawa, Toronto and Montreal is by car, six per cent is by plane and five per cent is by train."
If VIA were to focus on competing with the airlines (by prioritizing shorter travel times at the cost of higher fares*) and was able to take 50% of the airlines market share (a very ambitions and difficult feat), VIA's market share would only grow by 60% (from 5% to 8%).
However, by focusing on competing with those who drive (by keeping fares low and improving travel times only slightly*) and was only able to draw 10% of those who currently drive onto the train (a reasonable objective), they would more than double their market share (from 5% to almost 14%).
* both would also have improved reliability and frequency compared to today.
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And how does an Ottawa area MP not know about this and how transformative it would be?
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Possibly because he is more focused on slashing spending so that he can provide tax cuts?