Via Rail instance of passenger rail transport
History
Background
Yearly passenger levels on Canada's passenger trains peaked at 60 million during World War II. Following the war, the growth of air travel and the personal automobile caused significant loss of mode share for Canada's passenger train operators. By the 1960s, it was obvious to both Canadian National Railway (CN) and the Canadian Pacific Railway (CP) that passenger trains were no longer economically viable. CP sought to divest itself of its passenger trains, but federal government regulators and politicians balked, forcing them to maintain a minimal service through the 1970s, with the government subsidizing up to 80 per cent of losses. CN, being a Crown corporation at that time, was encouraged by the federal government and political interests to invest in passenger trains. Innovative marketing schemes such as Red, White, and Blue fares, new equipment such as scenic dome cars and rail diesel cars, and services such as Rapido and the UAC TurboTrain trains temporarily increased numbers of passengers, reversing previous declines.: 4–5 These increases proved temporary; by 1977, total passenger numbers had dropped below five million. The decline of passenger rail became a federal election issue in 1974 when the government of Pierre Trudeau promised to implement a nationwide carrier similar to Amtrak in the United States. Starting in 1976, CN began branding its passenger services with the bilingual name Via or Via CN. The Via logo began to appear on CN passenger locomotives and cars, while still carrying CN logos as well. That September, Via published a single timetable with information on both CN and CP trains, marking the first time that Canadians could find all major passenger trains in one publication. In 1977, CN underwent a dramatic restructuring when it placed various non-core freight railway activities into separate subsidiaries, such as ferries under CN Marine, and passenger trains under Via Rail which was subsequently renamed Via Rail Canada.: 6–9Formation and early years
On 12 January 1977, CN spun off its passenger services as a separate Crown corporation, Via Rail Canada. At its inception, Via acquired all CN passenger cars and locomotives. Following several months of negotiation, on 29 October 1978, Via assumed all CP passenger train operations and took possession of cars and locomotives. Passenger train services which were not included in the creation of Via Rail included those offered by BC Rail, Algoma Central Railway, Ontario Northland Railway, Quebec North Shore & Labrador Railway, various urban commuter train services operated by CN and CP, and remaining CN passenger services in Newfoundland. At this time, Via did not own any trackage and had to pay right-of-way fees to CN and CP, sometimes being the only user of rural branch lines.Via initially had a tremendous variety of equipment — much of it in need of replacement — and operated routes stretching from Sydney, Nova Scotia to Prince Rupert, British Columbia and north to Churchill, Manitoba. Over 150 scheduled trains per week were in operation, including transcontinental services, regional trains, and corridor services.While Via remains an independent federal Crown corporation mandated to operate as a business, it is hindered by the fact that it was created by an Order in Council and not from legislation passed by Parliament. Had Via been enabled by legislation, the company would be permitted to seek funding on the open money markets as other Crown corporations such as CN have done in the past. It is largely for this reason that critics say Via—like Amtrak in the United States—is vulnerable to federal budget cuts and continues to answer first to its political masters, as opposed to the business decisions needed to ensure the viability of intercity passenger rail service.
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