Last Updated 21 | 01 | 2014 at 20:54

News

Arriva losses exceeded €18.7m in 2013

Article By:
di-ve.com news
editorial@di-ve.com

Arriva registered a loss of more than €18.7 million until November when the company had envisaged a loss of around €3 million for 2013 according to financial statements tabled today in Parliament by Transport Minister Joe Mizzi.

The public transport service was nationalised on January 2 when Malta Public Transport Services (Operations) Limited took over all the shares held by Arriva for a nominal fee of €1.

The voluminous document shows that Arriva registered losses throughout its venture in Malta and was kept afloat by continuous cash advances by parent company Deutsche Bahn. The company amassed liabilities totalling €70 million.

In the first few months of operations, Arriva received payments amounting to €9.8 million from the state for the period July to December 2011. The launch of the service had been marred by an inefficient service which prompted Transport Malta to amend the route network and in the process incurring more costs.

During 2012, Arriva received around €10 million in subsidies, instead of the €6 million per year as projected in the original contract. In terms of revenue, Arriva generated ticket sales amounting to €21.5 million but registered a loss of €21.6 million.

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