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Finnish state railway service makes record profit

Source: Xinhua    2018-03-16 02:26:16

HELSINKI, March 15 (Xinhua) -- The Finnish state-owned railway service company VR Group made a record profit last year despite its major slash-down of fares, VR announced on Thursday.

The number of trips taken on VR trains grew 7.6 percent and reached nearly 127 million trips. The profit for 2017 was 110 million euros, when it was 43 million in 2016.

The turnover of the company grew 5.5 percent to 1,251 million euros, which included also freight and bus services offered by VR group.

Last year nearly 45 percent of the seats offered in market-based operations were sold, up from 42 percent a year ago, said the group.

While most of the long haul train services are offered on market conditions, tens of connections are operated with subsidies from the government as the services there could not be otherwise maintained.

The competition between commercial long haul buses and VR trains has increased in recent years. Both VR and bus companies have reduced their fares.

VR said its competitive edge has improved through higher speeds and lower prices. However, later this month the travel time on the key Helsinki-Tampere corridor will be increased as trains have to slow down on account of the technical condition of the tracks.

While competition with buses is intense, there are no competitors with VR on the exiting rail tracks, except in Freight services. VR does not own the tracks, which are property of the National Transport Authority.

VR had been a government agency until 1994, when it became a public business unit and later a state-owned company.

Editor: yan
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Xinhuanet

Finnish state railway service makes record profit

Source: Xinhua 2018-03-16 02:26:16

HELSINKI, March 15 (Xinhua) -- The Finnish state-owned railway service company VR Group made a record profit last year despite its major slash-down of fares, VR announced on Thursday.

The number of trips taken on VR trains grew 7.6 percent and reached nearly 127 million trips. The profit for 2017 was 110 million euros, when it was 43 million in 2016.

The turnover of the company grew 5.5 percent to 1,251 million euros, which included also freight and bus services offered by VR group.

Last year nearly 45 percent of the seats offered in market-based operations were sold, up from 42 percent a year ago, said the group.

While most of the long haul train services are offered on market conditions, tens of connections are operated with subsidies from the government as the services there could not be otherwise maintained.

The competition between commercial long haul buses and VR trains has increased in recent years. Both VR and bus companies have reduced their fares.

VR said its competitive edge has improved through higher speeds and lower prices. However, later this month the travel time on the key Helsinki-Tampere corridor will be increased as trains have to slow down on account of the technical condition of the tracks.

While competition with buses is intense, there are no competitors with VR on the exiting rail tracks, except in Freight services. VR does not own the tracks, which are property of the National Transport Authority.

VR had been a government agency until 1994, when it became a public business unit and later a state-owned company.

[Editor: huaxia]
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