B.C. Ferries looks to cut up to 400 sailings on major routes

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      B.C. Ferries is reportedly looking to cancel up to 400 sailings on its major routes as a result of over $5 million in net losses in this year’s first fiscal quarter.

      B.C. Ferries President and CEO David Hahn made the announcement following the corporation’s annual general meeting today (August 24), according to media reports.

      The news came the same day B.C. Ferries released first quarter results showing net losses of $5.5 million for the first three months of the fiscal year, compared to earnings of $0.9 million at this time last year.

      In the first quarter of this year, B.C. Ferries experienced a decline of 3.3 percent in vehicle traffic and 2.9 percent in passenger traffic, which translates to a 20-year low for passenger traffic, and an 11-year low for vehicle traffic.

      “We had originally planned for a net loss estimated to be in the range of $20 million for this fiscal year, largely driven by lower traffic levels and our commitment to fund on-going refit and maintenance programs, training and safety programs and capital projects,” Hahn said in a news release issued today (August 24).

      “Recently we have seen a further erosion of traffic and we do not anticipate a turnaround in the foreseeable future. Therefore the year end loss could be significantly higher.”

      B.C. Ferries has launched a review of all of its expenditures, which they say will result in cutbacks, particularly in relation to capital expenditures and discretionary spending.

      According to CBC News, the majority of the sailing reductions will come from the extra Friday and Sunday sailings during the off season. Layoffs of on-call workers that staff those extra sailings are also expected. The plan to reduce sailings requires the approval of the B.C. government.

      During the corporation's first quarter, revenues decreased by 1.8 percent to $186.7 million, while total expenses increased 1.5 percent to $192.2 million. The increased expenses are being attributed mainly to the rising cost of fuel, as well as an actuarial valuation of employee benefits, and amortization expense.

      According to the first quarter report, capital expenditures during the first three months of this fiscal year, which ended June 30, 2011, totaled $25.7 million, including $10.7 million in vessel upgrades and modifications, $6.9 million in terminal marine structures, $4.1 million in terminal and building upgrades and equipment, and $4 million in information technology.

      Comments

      5 Comments

      Mark Fornataro

      Aug 24, 2011 at 1:39pm

      Cut David Hahn instead. His mismanagement of BC Ferries, ie raising rates so that a ferry trip prohibitively expensive (except for CEOs) means he should be given the boot.

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      mr vancity

      Aug 24, 2011 at 2:37pm

      The would generate more ridership with cheaper fares, they have steadily increased and yet offered no new services, speed or added value. Any business who prices themselves out of the market especially in these difficult economic times will and are likely facing similar loses.

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      LostMyGlasses

      Aug 24, 2011 at 6:51pm

      Wait a second, the luxury spa treatment available isn't raking in the dough?

      I hope this guy is the first to be fired if the BCNDP take government.

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      Sheep

      Aug 24, 2011 at 6:56pm

      This is a FARCE...

      [1] Get rid of the CEO, pay out whatever Golden Deal there is,

      [2] Fire the Entire Board, they are just as responsible for this,

      [3] Remove layers of Management,

      [4] Operations, Supervisors & Captains should all report to the Ministry of Transportation,

      [5] Cut staff at the Ministry of Transportation & Restructure it,

      [6] Put back the Fast Ferries (oh wait they sold it for pennies on the dollar, idiots),

      [7] Build a Bridge NOW with Rapid Transit Trains on the side of it,

      [8] Fund it with Tolls, but the Tolls should not be higher than $10 each way because you need to ensure the Island Economy does not collapse & make it accessible to poor people as well.

      [9] Vote out this Neo-Con Government u know the ones that always says it's great for the Economy = Massive Deficits & Mismanagement.

      [10] Don't Ever Ever Vote a Drunk Driver into Office.

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      James G

      Aug 26, 2011 at 10:29am

      Surely the fares should be far higher and sailings less frequent ... after all, why should non-ferry users subsidize the massive fuel usage of these ... oops, I thought I was Elizabeth May or her Green Party minions for a moment. Doubtless, if she did not represent the constituency she does we may hear that from her but then again ...

      We live in community. People need access to these islands, whether resident, sometimes resident (hello famous hypocritical scientist!) or visitor. To suggest that everyone is getting a subsidy because roads, bike lanes or ferries are there is just playing divide and conquer politics of the worst kind. Everyone has need of that infrastructure and everyone, car-user or bike-user benefits.

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