Greyhound suffering ‘unsustainable’ losses

Greyhound Canada lost $12.9 million on its passenger operations in British Columbia during the last fiscal year, the company said in a rationale for its application to the Passenger Transportation Board seeking, in part, elimination of the service in northern B.C.

Even once its freight carrying service is accounted for, the total operating loss stood at $4.6 million, according to the document now available on the PTB website. Greyhound has lost a total of $49.2 million over four years on its passenger service.

“These ongoing losses are unsustainable,” the company said.

The carrier wants to eliminate service along the entire length of Highway 16, from Prince Rupert to the Alberta border, as well as along Highway 27 to Fort St. James, and along Highway 97 from Prince George to the Yukon border.

It also wants to reduce the minimum service between Prince George and Vancouver to two trips a week in each direction, down from 28 a week and two per day each direction and to eliminate 10 stops along the route.

Greyhound would maintain service along Highway 16 and Highway 5 between the Alberta border and Vancouver but reduce service to twice a week each way from as high as 14 times, depending on the community.

Greyhound also wants to eliminate passenger service between Victoria and Nanaimo, Victoria and Vancouver and between the University of British Columbia and Whistler and end 22 stops spread over six other routes.

For part of its woes, the company cited “unregulated B.C. government competition” in the form of Northern Health’s NH Connections service for patients traveling to out-of-town medical appointments in northern B.C. and Vancouver, as well as a similar service for Interior Health patients to the south.

B.C. Transit’s newly-launched service between Prince George and Smithers along the so-called Highway of Tears was not mentioned.

Tables in the rationale show a steady decline in passenger load over the last four years.

For example, use of the service along Highway 16 between Prince George and Prince Rupert dropped from 41,107 in 2014 to 23,378 in 2017, the years ending March 31 with a concurrent decrease in passenger revenue per mile, from $2.93 to $2.42.

The break even point on that metric currently stands at $7.09 while the average for the province as a whole is tracking at $4.94 for 2016-17.

So-called “cross-subsidization,” where rates are hiked on more-used routes to make up for losses on the unprofitable ones, is out of the question, according to the rationale, given the competition from Northern Health and Interior Health.

“In other words, it is not possible for Greyhound to maintain market share with a cross-subsidization strategy since the few remaining profitable routes cannot, on their own, support an entire provincial intercity bus service that generates such high losses,” the company said.

If the PTB approves the reductions, Greyhound will eliminate 1.6 million schedule miles in B.C., “and generate significant operating savings” while still retaining 3.7 million schedule miles. The changes are anticipated to reduce the operating loss by $2.6 million in the first year.

“Greyhound makes this application with a heavy heart but with the knowledge that it will be preserving jobs in the long run in the province and finally be on the road to financial viability,” the company said.

Put up on Wednesday, the posting on the PTB website starts the clock ticking on a 60-90 day process that includes a public consultation period.

The deadline for comments to the PTB is Oct. 13 and can be submitted via email, ptboard@gov.bc.ca, fax, 250-9533788, and letter, Passenger Transportation Board, PO Box 9850 STN Prov Govt, Victoria, B.C., V8W 9T5. Quote application number 256-17 and the route number of concern.

Greyhound wants to have the changes in place by Jan. 7, 2018. The rationale is posted with this story at pgcitizen.ca.