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Fair dealings, Copyright act and all that stuff.
http://www.thechronicleherald.ca/Front/1056878.html
Via Rail military freebies no sacrifice
Offer seen as slow-season tonic
OTTAWA — Via Rail’s offer of free train tickets for Canada’s military during the month of July was partly a business decision to help boost revenues during a slow travel period, an internal document suggests.
The offer, announced with fanfare at the Halifax railway station on March 26, was publicly touted as a way for the Crown corporation to express its gratitude to military personnel.
"We just wanted, simply, to say thank you . . . for everything they’re doing for us," Via’s chairman Donald Wright told a news conference attended by Defence Minister Peter MacKay.
‘But an internal planning document, obtained by The Canadian Press, suggests there was more than altruism at play.
July is traditionally the slowest revenue month for Via Rail, as business travellers and students disappear, especially in central Canada, and as more tourists choose to travel in May, September and October.
"Historically, July has been Via Rail’s poorest month by passenger load in Via 1 (first class). That trend dates back to 1997," says the Dec. 11 proposal for the military freebie.
"In comfort (economy) class, July has traditionally been 20 per cent lower than August."
The offer to military personnel and veterans, and for civilian employees at National Defence, included a 50 per cent discount for family members travelling at the same time in the same economy class — a potential source of fresh revenue on otherwise half-empty trains.
In addition, as July trains filled up, more non-military passengers would be forced to travel in June or August, or would have to upgrade to seats in first-class or even sleeper cars.
"The additional revenue would be welcome," says the document. "If the offer is successful we could experience a surge in demand in July, which could spread our summer business over three months.
Additionally regular coach passengers may be encouraged into purchasing upgrades . . . and there should be a noticeable increase in on board revenues."
The proposal concluded: "Overall the downside of this offer is very low. It will generate trial (business), and new business. The upside, particularly in media exposure and in goodwill, could be massive."
A spokeswoman for Via Rail said the offer was never designed as anything more than a thank you to the military.
"This appreciation fare is not about revenues, it’s not about statistics," Catherine Kaloutsky said in an interview.
"What it’s about is saying thank you. It was about finding a simple way to show appreciation to those who have served our country and who are currently serving our country."
About 26,000 reservations have been made under the program so far, Kaloutsky said, though she could not indicate how many were freebies and how many were family discounts.
Via Rail’s Ocean (Halifax to Montreal) and Canadian (Vancouver to Toronto) trains are almost fully booked for July, but there are still seats in the central Canada corridor trains from Windsor, Ont., to Quebec City.
The Crown corporation has been struggling in recent years with poor on-time performance, cheap competing air fares in central Canada, and frequent equipment failures, especially in its geriatric F-40 locomotives. The high dollar has cut into its tourist business.
The federal government had to cover a $200-million operating deficit at the Crown corporation last year — or about $48 for every passenger.
Via Rail’s trains are, on average, only 55 per cent full and almost a quarter of them arrive late.
The money-losing corporation’s military freebie drew some criticism when it was announced.
"Since when is it Via’s mandate to expend funds to support DND employees?" said one e-mail respondent to a CBC online report.
"I hope the auditor general slams Via and everyone along the line who had a part in this decision."
Internal figures suggest the freebie is generating new revenues.
An analysis dated April 16, or three weeks after the offer was made, shows Via Rail booked about $370,000 in revenues for July under the Canadian Forces family appreciation fare, the half-price tickets for military family members travelling together.
An official estimated bookings for the eastern and western services were between three and five times higher than at the same point in 2007.
The Via Rail documents were obtained under the Access to Information Act.
The corporation carries about four million passengers each year, most of them in the busy Montreal-Ottawa-Toronto corridor.
Last October, the federal government announced $516 million in capital funding over the next five years, much of which will go to rebuild the F-40s from the ground up, giving them 15 to 20 more years’ of service.
’If the offer is successful we could experience a surge in demand in July, which could spread our summer business over three months. Additionally regular coach passengers may be encouraged into purchasing upgrades.’
http://www.thechronicleherald.ca/Front/1056878.html
Via Rail military freebies no sacrifice
Offer seen as slow-season tonic
OTTAWA — Via Rail’s offer of free train tickets for Canada’s military during the month of July was partly a business decision to help boost revenues during a slow travel period, an internal document suggests.
The offer, announced with fanfare at the Halifax railway station on March 26, was publicly touted as a way for the Crown corporation to express its gratitude to military personnel.
"We just wanted, simply, to say thank you . . . for everything they’re doing for us," Via’s chairman Donald Wright told a news conference attended by Defence Minister Peter MacKay.
‘But an internal planning document, obtained by The Canadian Press, suggests there was more than altruism at play.
July is traditionally the slowest revenue month for Via Rail, as business travellers and students disappear, especially in central Canada, and as more tourists choose to travel in May, September and October.
"Historically, July has been Via Rail’s poorest month by passenger load in Via 1 (first class). That trend dates back to 1997," says the Dec. 11 proposal for the military freebie.
"In comfort (economy) class, July has traditionally been 20 per cent lower than August."
The offer to military personnel and veterans, and for civilian employees at National Defence, included a 50 per cent discount for family members travelling at the same time in the same economy class — a potential source of fresh revenue on otherwise half-empty trains.
In addition, as July trains filled up, more non-military passengers would be forced to travel in June or August, or would have to upgrade to seats in first-class or even sleeper cars.
"The additional revenue would be welcome," says the document. "If the offer is successful we could experience a surge in demand in July, which could spread our summer business over three months.
Additionally regular coach passengers may be encouraged into purchasing upgrades . . . and there should be a noticeable increase in on board revenues."
The proposal concluded: "Overall the downside of this offer is very low. It will generate trial (business), and new business. The upside, particularly in media exposure and in goodwill, could be massive."
A spokeswoman for Via Rail said the offer was never designed as anything more than a thank you to the military.
"This appreciation fare is not about revenues, it’s not about statistics," Catherine Kaloutsky said in an interview.
"What it’s about is saying thank you. It was about finding a simple way to show appreciation to those who have served our country and who are currently serving our country."
About 26,000 reservations have been made under the program so far, Kaloutsky said, though she could not indicate how many were freebies and how many were family discounts.
Via Rail’s Ocean (Halifax to Montreal) and Canadian (Vancouver to Toronto) trains are almost fully booked for July, but there are still seats in the central Canada corridor trains from Windsor, Ont., to Quebec City.
The Crown corporation has been struggling in recent years with poor on-time performance, cheap competing air fares in central Canada, and frequent equipment failures, especially in its geriatric F-40 locomotives. The high dollar has cut into its tourist business.
The federal government had to cover a $200-million operating deficit at the Crown corporation last year — or about $48 for every passenger.
Via Rail’s trains are, on average, only 55 per cent full and almost a quarter of them arrive late.
The money-losing corporation’s military freebie drew some criticism when it was announced.
"Since when is it Via’s mandate to expend funds to support DND employees?" said one e-mail respondent to a CBC online report.
"I hope the auditor general slams Via and everyone along the line who had a part in this decision."
Internal figures suggest the freebie is generating new revenues.
An analysis dated April 16, or three weeks after the offer was made, shows Via Rail booked about $370,000 in revenues for July under the Canadian Forces family appreciation fare, the half-price tickets for military family members travelling together.
An official estimated bookings for the eastern and western services were between three and five times higher than at the same point in 2007.
The Via Rail documents were obtained under the Access to Information Act.
The corporation carries about four million passengers each year, most of them in the busy Montreal-Ottawa-Toronto corridor.
Last October, the federal government announced $516 million in capital funding over the next five years, much of which will go to rebuild the F-40s from the ground up, giving them 15 to 20 more years’ of service.
’If the offer is successful we could experience a surge in demand in July, which could spread our summer business over three months. Additionally regular coach passengers may be encouraged into purchasing upgrades.’
. I don't get these people at all. Here's my take: When I buy anything, car, dishwasher, stereo, whatever, if I think I got a good deal, and the salesman thinks he got a good deal, THEN IT'S A GOOD DEAL. This is a good deal for us, a good deal for VIA, therefore, IT'S A GOOD DEAL. Some people need a good swift smack in the head with a dead mackerel.
