BLUEBELL CUTS RUNNING DAYS AFTER £220K LOSS
Railway trims down low-season services to reduce gap between revenue and running costs.
Trains on the Bluebell Railway will run on fewer days compared to previous years in an effort to curb operating costs, after it lost over £220,000 last year.
Excluding December, the Bluebell’s operating days have been cut back to 214 this year compared to 232 in 2018. “The core of this reduction sits with not operating services on Mondays and Tuesdays in the ‘shoulder months’ of September and October and also May,” said Bluebell Railway plc communications director Roger Garman.
“This action arises from needing to balance the books and the reality of not running trains in the off-peak periods that are poorly loaded. It also gives additional 48-hour windows for service, maintenance and repairs of our running fleet.”
The timetable reduction comes after the railway recorded a loss of £220,773 in 2018, the fourth such loss since the railway opened to East Grinstead in 2013. Bluebell Railway plc chairman Dick Fearn said: “Over recent years, the company has generally reported small annual losses of circa £200k per annum, and the break-even results for 2013 and 2017 were only achieved against the background of the profit retained from the opening of the northern extension in 2013 and Flying Scotsman’s visit in 2017.”
Part of the reason for this string of losses is heavy depreciation charges but, writing in the Spring 2019 edition of Bluebell News, Mr Fearn added: “Even though our total number of visitors and our total revenue has been growing healthily in recent times, the railway’s day-to-day operations still struggle to break even most years, primarily because our operating costs are too high for the revenue we earn overall.
“On some operating days at certain times of the year, the number of visitors we receive is too low to justify the service being provided.”
Mr Garman added: “The number of operating days will continue to be kept under review, but right now, the focus is on eliminating the gap which exists between revenue and operating costs, and this decision is a part of that process. We have to ensure that the Bluebell has a financially sustainable footing.
“I would think that for most, if not all, preserved railway operators, finance is an ongoing concern and that includes the Bluebell Railway. Ever increasing demands for funds have to be met from a combination of new and additional revenue sources, cost efficiencies and ongoing review of priorities.
“We are fortunate that our balance sheet does not carry a significant level of debt and that our capital projects are, in the main, supported by legacies, grants, bequests and dedicated fund-raising initiatives. However, balancing the books remains a challenge.”
In his column in Bluebell News, Mr Fearn concluded: “The general manager and heads of each department are now progressing plans to increase our visitor numbers and reduce unnecessary costs wherever we find them.
“I am confident that together, all these measures will strengthen our financial position and help further
secure our railway for the future.”