BC Ferries losing money

[I Think]

I ride the ferry it is only 2/3rds full, so the ship is likely operating at a loss. The answer - lets raise the rates - oh yes that will work, ridership will go down because the fare went up. So the ship is soon going to be sailing to meet schedules with fewer and fewer fare paying riders.
If you are moving empty car spaces from port to port, you are paying the fuel bills and wages etc for these spaces. The answer, any business person knows you attract customers by cutting prices, once you attain your optimum ridership, then you can begin to raise prices again.
It should be fairly easy to fill the empty spaces by offering some sort of temporary deep discounted tickets good for the runs that are under subscribed.
Who ever is making the fare decisions needs to study sales and accounting.
PS BC parks makes the identical mistake - raise the camp ground fee and empty the camp ground.

[sooperphreek]

funny how something so simple is such a complicated thing for wannabe accountants that whine people have no idea how to run budgets or strata.

[John500]

And another 12% increase over 3 years on top of the current rate. Still have the fuel surcharge. Ridership will go down further and further till only those that really need the ferries will use them. Its a downward spiral. But I guess the $500.000 per year earning CEO's have not figured that out as yet.

[OnTheRoadAgain]

people cannot afford to take the ferry anymore.\
Never mattered to us, our friends there would come here, but now part of our family has moved there, and it's going to be less visits for us.

[NAB]

When a government agency or private corporation slaps a tax or levy on anything, it's rare that it gets removed. So B.C. Ferries is to be congratulated for scrapping its two-per-cent fuel surcharge, effective Friday.

President Mike Corrigan said the recent decrease in fuel costs enabled it to do so: "We are pleased to be able to reduce the cost of ferry travel for our customers, as every bit helps."

Sure, every bit does help in these troubled economic times, especially when you live on an island and rely on a quasi-monopoly like B.C. Ferries to get around.

But all is not clear sailing for ferry passengers. They'll continue to face service cuts. And they'll still be paying more in fares, at least in the medium term.

In October, a Ferries official said fares would probably rise a whopping 12 per cent over the next three years - far in excess of either the current or projected inflation rate.

Those hikes will undoubtedly serve as a further disincentive to those who already feel they are paying through the nose for their rides.

And the question we have to ask is this: How has B.C. Ferries allowed itself to get into such a bind?

http://www.theprovince.com/business/Sto ... story.html

Well, lessee... a cock-a-mamie and lousy government with no foresight and stupid ferries structure, along with greedy and incompetent management for starters, combined with an upside down regulatory agency with no teeth, just a rubber stamp? What is it some people don't understand about the fact that in an economy the average middle and lower class consumer is the real economic driver but has severe limits these days.... and the natural reaction when those limits get hit or exceeded is to reduce, even stop, spending on discretionary things.

[maple leaf]

They put BC ferries into a pretend private corporation so now they can't take advantage of lower interest rates.Read more about the lavish spending by BC ferries to benefit their supporters , while they cut services, at the link below.
Snip;
The long term debt of BCF at March 31, 2012 was $1.3 billion and the average interest rate on this debt was 5.56%. The Municipal Finance Authority 10 year rate in June 2012 was estimated at 3.11% The interest rate difference would be about $32 million a year, which is $127.4 million between now and 2016, five times Mary's goal.





http://northerninsights.blogspot.ca/201 ... iders.html

[steven lloyd]

But I guess the $500.000 per year earning CEO's have not figured that out as yet.

Should have found someone we could pay at least twice as much. These guys are worth it you know

[twobits]

500k per year for a person with extensive education, decades of experience, running a billion dollar company is just somehow out of this world unjust yet a snot nosed 18 yo entering the NHL is guaranteed a min 850k yr. I am not even going to suggest who is actually worth their salary in a real world.
Just wondering what you folks out there think someone like the CEO or CFO of BC Ferries should earn? Would 250k be acceptable? Go ahead and post it for that much and see what kind of talent it attracts lol. For those of you that think it is some kind of fluffy laid back gig, you have no idea the hours involved and what it takes to run a business/company of this magnitude.
And for the record, I too am sickened by some of the media reports of executive renumerations but picking on the CEO of BC Ferries for a 500k salary just demonstrates an ignorance of reasonable salary structures for these thankless positions and is actually quite petty. Your distain would be better directed towards the millionaires living on the gulf islands that expect a ferry to be available to them 6 times a day at several different terminals that you pay half the ferry fare for thru subsidy.

[sooperphreek]

so the utter failure of he "talent" drawn for years proves that the million dollar salary and the salary of the sucessor prove that the wage isnt the issue. it is the "talent" that they hire. if you hired someone with experience and balls for 250,000 they might just fix things.

[twobits]

so the utter failure of he "talent" drawn for years proves that the million dollar salary and the salary of the sucessor prove that the wage isnt the issue. it is the "talent" that they hire. if you hired someone with experience and balls for 250,000 they might just fix things.

Yes, it's just that simple for you isn't it? Please tell us what someone at your paygrade would do to fix things? Seriously, you recognize a problem and if you were CEO, what would you do to fix things? It's easy to be a mouthpiece armchair critic, anyone can do that.......so if you are not that, let's hear your ideas.

[sooperphreek]

thats just it isnt it? the CEO that is overpaid is a mouthpiece in the end. and usually filled by a guy who is cashing in a favor. and who is overpaid and over hyped. maybe we should pay mark carney for a year to revolutionize the ferry like he has the banks. but that kind of calibre is way out of our league.

[maple leaf]

$500 k salary for the CEO of BC ferries sound to me like it is to much,compared to the CEO of Canada who only gets $317.574

[Roadster]

thats just it isnt it? the CEO that is overpaid is a mouthpiece in the end. and usually filled by a guy who is cashing in a favor. and who is overpaid and over hyped. maybe we should pay mark carney for a year to revolutionize the ferry like he has the banks. but that kind of calibre is way out of our league.

I agree, they have let CEO wages get so far out of hand that those people can only see the dollars they will get on top for bonuses, its an art now that last a few years and the CEO leaves with his retirement fund already built and running.
Time they were given a set rate, bonuses are now a great mention in their recommendation towards their next job and a certificate of appreciation if they leave and trips and other perks are at a minimum and only where needed. Also they make enough above and beyond the regular working class so they can afford their own car to get to and from work and the gas they need to put in it.
Funny, I heard years ago that a major air line saved nearly a million bucks in a year by nixing off a coupla olives from each plate served in the first class sections... Taking from the big guy can make a big difference and they might not even notice if you dont tell them they probably had it last year.

[NAB]

""B.C. Ferries solution unlikely before election, premier says during year-end interview
Residents of Vancouver Island’s ferry-dependent coastal communities may head into the May provincial election without a clear solution for the financial troubles at B.C. Ferries, the premier says.

Christy Clark said she was unsure whether her government would finish its planned public consultation on ferry service reductions with enough time to propose a solution in her party’s re-election platform this spring.

“I don’t know that the consultation will be finished by then,” she told the Times Colonist in a year-end interview.

“It’s a pretty major rethink of how [B.C. Ferries] is going to work … and I don’t know where we’ll end up.”

B.C. Ferries is wrestling with low ridership, rising fares and steep financial losses.

The government estimates the quasi-private ferry company, which is subsidized by taxpayers, will run a $564-million shortfall in the next 10 years.

The government is trying to eliminate $26 million in underused ferry routes and redefine the “vision” for the company’s future with the help of recent public consultations. A final report is expected in late February, but will simply summarize the public feedback.

Despite an $80-million boost to B.C. Ferries’ government subsidy this year, ticket prices have continued to rise — with critics saying they have gone beyond what customers are willing to pay.

The government is struggling to find a balance between necessary ferry service for coastal communities and sailings that are losing money by carrying more crew than passengers, Clark said.

“That’s a vexing problem for us,” she said.

“We have put $80 million into B.C. Ferries [in additional government subsidies], as you know, and that is not a sustainable amount of money from taxpayers across the province. It’s just not. You can’t run a ferry system with that kind of level of subsidy forever.”

The struggle over the future of B.C. Ferries is just one of the issues on the minds of Island residents as they wrap up 2012 and look ahead to the May 14 provincial election.

Clark said her B.C. Jobs Plan remains the “fundamental building block” of her vision for the future of the province, with goals of creating jobs, increasing post-secondary skills training and keeping life affordable for families.

“That’s been the basis from the beginning, and we’re sticking with that,” she said.

The premier also expressed reluctance to look at personal income tax hikes to help balance the February provincial budget in the face of slumping revenue. The budget must provide enough of a surplus to be credible to voters, she added.

She said she wants B.C. to remain the lowest personal income tax jurisdiction in the country, and doesn’t believe there’s any room for a hike.

In the past, Clark has expressed bewilderment over complaints that some Island communities don’t get a fair share of government funding.

Those complaints persist, and Clark continues to reject them.

“What has the Island really needed more than anything? It’s been health-care investment, because there’s a . . . growing aging population on the Island,” she said.

“So the new Royal Jubilee Hospital is $358 million of investment. Comox/North Island, $600 million for hospitals in that region. That’s really been the bulk of the government’s investment over the last little while.

“It’s an investment that’s been well-earned by the Island, given that so many people are retiring here and requiring more health care as they age.”"

http://www.timescolonist.com/news/local ... ew-1.35829