(Canwest News Service circulated the followings tory by Allison Lampert on May 27.)
MONTREAL — Via Rail Canada Inc. is raising most rail fares by five per cent on June 10 to counter the soaring price of oil that’s crippled all transportation sectors.
Via initially planned to raise prices by two per cent nationally, but that amount wouldn’t offset the higher cost of diesel fuel used by company trains, spokesperson Malcolm Andrews said Tuesday.
For example, an economy class, regular one-way fare on the popular Montreal to Toronto route, will rise from $122 now to $128.10 on June 10.
Although most VIA fares will rise by five per cent, tickets on two scenic lines – the Canadian route from Vancouver to Toronto, along with the Skeena route from Jasper to Prince Rupert – will increase by two per cent, he said. That’s because many of the customers for these lines are tour operators who have booked tickets up to a year in advance.
While VIA has taken protective measures like hedging fuel prices and reducing diesel consumption by 25% since 1990 – despite increased ridership – the company has no other choice but to raise fares, he said. VIA is also absorbing higher charges from its suppliers, who are passing on their increased costs on items like the food served on trains.
“We are being impacted like everyone else is,” Andrews said.
“This is the first fare change VIA has put in place since January 2007.”
This month, soaring oil prices have forced airlines across North America to introduce, or hike existing jet fuel surcharges. On Wednesday, charter operator Transat A.T. Inc. is raising its fuel surcharge on some flights to Europe by 75 per cent.
On Tuesday the price of oil dropped $3.34 to close at just under $129 a barrel.
Unlike the fiercely competitive airline industry, VIA simply increased its fares instead of adding a surcharge, he said.