Business

Acadian Lines shutting down by Nov. 30

By COLLEEN COSGROVE Business Reporter
Acadian Lines announced Tuesday it will close its Maritime operations by the end of the year. (PETER PARSONS / Staff)
Average: 4.2 (25 votes)

UPDATED 8:53 p.m. Tuesday

Regional bus travel in the Maritimes will be coming to a screeching halt.

After nearly 80 years in operation, Acadian Coach Lines in New Brunswick and Prince Edward Island and Acadian Intercity Coaches in Nova Scotia announced bus services will cease by Nov. 30.

The company, owned by Quebec-based Groupe Orléans Express, cited rigid regulations and irreparable financial loss — in the neighbourhood of $12 million since it acquired the regional service in 2004 — as contributing factors.

About 125 to 150 office clerks, mechanics, drivers and customer service representatives will lose their jobs. All were notified Tuesday afternoon.

Denis Gallant, Groupe Orléans Express vice-president of Maritime operations, said Tuesday an outdated regulatory framework prevented the company from making proposed route changes to stop the bleeding and boost ridership.

“The root of the problem is how the current regulatory framework exists,” Gallant said.

“It is based on the model that your profitable routes are supposed to subsidize your non-profitable routes. However, in the Maritimes ... you have a lot more non-profitable routes. So any routes that are profitable ... are no longer able to support the weight of the others.”

More than 80 per cent of Acadian bus routes in the region were a losing endeavour, Gallant said.

Gallant, a consultant tasked with solving the six-month lockout that plagued the company in the winter and then finding efficiencies and boosting ridership, said the business wouldn’t make money even if drastic changes to the route network were introduced.

The firm floated the idea of selling the company, but Gallant said every outfit approached wasn’t interested.

“They all brought up the same points — the size of the network doesn’t make sense.”

The company’s fleet of 38 intercity motorcoaches will be sold and not transferred to any of the company’s seven subsidiaries in Quebec.

Groupe Orléans Express doesn’t own any real estate in the Maritimes. It leases properties like the Acadian Bus Lines terminal on Marginal Road in Halifax.

Glenn Carr, president of Local 1229 of the Amalgamated Transit Union, has little sympathy for Groupe Orléans Express, comparing top managers to absentee landlords.

“Dysfunctional management drove this company to the ground, and it’s about time the provinces stood up for the people who deserve intercity bus service,” Carr said Tuesday.

“We cannot let Quebec companies come in here, slave off the backs of the working people, and then shut everything down and take away our transportation business.”

Carr doesn’t buy claims that regional bus service is a losing game in the Maritimes.

“There was no need to lose money here,” he said. “There are all kinds of opportunities out there.”

The union repeatedly asked for bus service to be instated in Rothesay, N.B., a bedroom community of Saint John with a population of about 100,000, but Carr said the company never responded.

Gallant said Rothesay “could have been an opportunity” and said there was “no specific reason” why the service wasn’t instated.

The trickle-down effect this decision will have on communities throughout the Maritimes is devastating, Carr said.

“The rural agencies will close down and businesses will be forced to choose more expensive ways to ship their goods.”

Halifax chartered bus company Ambassatours Gray Line may be in a position to fill the gap, president Dennis Campbell said.

“We were all very aware of their challenges in creating a viable operation ... but when something like this happens, there’s always opportunity,” Campbell said Tuesday.

“It’s hard to say right now what exactly that opportunity is, and they won’t just be for our company.”

Campbell said he plans to contact the Nova Scotia Utility and Review Board to enquire about filling short-term gaps in service.

Ambassatours has considered entering regional bus service in the past but Campbell was quick to point out that finding the right financial recipe is elusive.

“We’ve often said to ourselves that if we were ever presented with the opportunity, we’d definitely be able to step in to those viable routes,” Campbell said. “The problem is there are many routes that aren’t profitable, and it’s a bit of a slippery slope.”

(ccosgrove@herald.ca)

Private sector can not run public transportation.

They should have never killed off the rail service, the buses were supposed to be the replacement. It was the whole "the private sector can run it better attitude". Well the private sector ran it alright, into the ground. This will be the first time in modern history Nova Scotia and the Maritimes will have no full intercity transit system. What a disaster.

It was Acadien Bus lines who

It was Acadien Bus lines who said,when VIA applied to discontinue it's service from Halifax to Yarmouth....we'll cover it and double the number of busses if needed.
What catastrophe the abandonment of rail service,both frt and psgr,was to the Valley to Yarmouth regions.

No. Regulations ran it into the ground

The regulations that are placed on these transportation companies cost money. Having to service routes that are not profitable is the problem. Private Companies do not get to raise taxes to compensate for these routes like Government does and yes Private Companies are in business to make money.

Does not matter

How you try to explain it. There are people out there that have no grasp of reality. They continue to believe the Government will provide all with no thought of cost or consequence.

Going to miss it

even though they have very limited service from the valley, its quite importantsince, although there are several shuttles, they are quite expensive and King's Transit only goes to a bit past Windsor in teh direction of Halifax. This is going to make it rough on many people.

acadian lines

This is so sad. ...how are students and people who can t afford cars to get around? Bus service is essential to these people. The Maritimes can t even support a bus system? We are pitiful :-(

How'd that strike go?

Man you shut down for five months and then the ridership doesn't return! Harsh. Good news for people with a shuttle business though.

Get ready for handouts

Lets get ready for the government handouts that are about to happen. The outcry is going to start and the demands will be to much leaving the taxpayers on the hook for keeping this private business going.

SOS PUBLIC TRANSPORTATION ALERT

Good God -- the buses are disappearing in November, the train is only running three days a week, starting in November -- THIS IS YOUR WARNING, PEOPLE -- THE MARITIMES ARE SHUTTING DOWN. GET OUT WHILE YOU STILL CAN!!!

Having two of their buses

Having two of their buses land in a river (Baddeck and Monastery) in the last 4 years made it very difficult to keep the business "afloat".

Impacts Everyone

My father has been driving for Acadian Lines for over 25 years, and over the years I've seen runs being dropped, terminals closed, but never did I think this was going to happen. I've known many friends over the years who knew my father as the guy that often brought them home from school for the long weekend or holidays, so what happens to them? Do students who go to school 2-3 hours drive from school not come home all year? Do they go further into debt having to buy their own vehicle, or spend thousands of dollars in gas for the vehicle they already own?
Even folks that have to travel to the big city's from their hometown for medical expertise, do they now have to shell out, or do they forego the trip and help they sorely need?
And of coarse, I think it goes without saying, what about the employees, many of whom have invested a good deal of their lives to this company, now face the unemployment line, finding work outside the maritmes, or possibly even a total change of career? I sincerely hope the government steps in to save these jobs, considering regulations forcing the company to continue service to non-profitable routes is one of many factors contributing to the current situation. Subsidizing and/or working with the company could be the difference between saving jobs and continuing a much needed service to people of the maritimes, or watching the end of intercity transit on most of the east coast.

Let ATU buy and run the service

The ATU is sure the bus service can make money, so let them buy the buses and run the system. Perhaps other unions will buy a piece of the action.

Hilarious

Unions only know how to bleed businesses dry. They have no idea how to run them.

And so it starts

as i said above, just wait for the calls for the government to step in a subsidize a private business. Here it begins...NOT MY TAX DOLLARS...thank you very much

Alward/Dexter; this is 2012, not 1975.

Just another company brought down by a union strike and archaic government regulations. There is good demand in Atlantic Canada for a good interprovincial city bus service network and Acadian Lines was/is fully capable of providing that service.
When a person catchs a flight out west, they are normally driven directly to Stanfield. Small town, full size bus service to Halifax effectively became uneconomical decades ago. Regulations requiring Acadian to maintain bus service to provincial outposts in both New Brunswick and Nova Scotia should have died at the same time.
Want to board a reliable interprovincial bus: you go to a major center to catch one. We already do it for air flights but a bus is a lot more economical to many for short distances.
Some quality bus service in Atlantic Canada is better then none!

Good news for shuttle business?

Yeah maybe, but not so much for the people who can't afford to pay the bill (which will likely be higher than Acadian Lines).

I am just absolutely disgusted with the NDP (and the city of Halifax for that matter). I have never seen such a brutal assault on public transportation in all my years.

This at a time when the global warming special interest pressure on the public is at an all time high. Seriously, even if we wanted to use public transportation to be green we couldn't because it NO LONGER EXISTS.

I mean what is this government trying to do? Make it so that people are forced into the city (which most people actually wouldn't do if they had the choice)...and then cut off all exits in the province so that there's no way we can leave? Is that our idea of living green?

In my opinion, the death nell ringeth for this province. There has never been more reasons to leave then there are now.

If I had it to do over again, I would NEVER have dropped anchor here.

The death knell for this

The death knell for this region rang back in 1867, at Confederation, and it's been ringing ever since. Dismantling mass and public transportation puts the Maritimes behind even third-world countries with regards to transportation infrastructure. Things have gotten decidedly worse here over the years, not better. The fish are gone, the go-getters are gone, and the people that remain behind are, sadly, ripe for the plucking and tend to fall in line with the latest slickly-presented big-business schemes that promise jobs, jobs, jobs, most of which rely heavily on taxpayer funding and either never pan out or involve irreversible destruction of the natural environment.

I have run screaming from Nova Scotia any number of times, only to be drawn back by sentimental cords, and upon each return, I spend a good deal of my energy alternately frustrated by the lack of initiative and critical thinking skills of the locals and deeply peeved at how government and big-business have, step by step, destroyed small and micro-businesses here, which are the economic heart and soul of any society. The Maritimes is without a doubt a special-needs region, now that the primary industry and means of self-sufficiency for many communities (fishing) is all but gone. What is urgently needed here now, today, is less reliance on someone else solving our problems (by expecting/demanding pre-packaged jobs) and more of the old pioneering spirit, where people take personal responsibility for their own livelihoods.

Maybe this will spur some

Maybe this will spur some enterprising souls to start their own livery services - on a smaller scale, servicing routes they know the ridership/delivery needs of. Passenger vans holding 8 persons could make a decent living if you don't factor in union scale, etc. I think the pioneering spirit will step in to fill the gap. I have faith in my peeps!

The Maritimes has made its choice.

I'm sorry for the people who will lose jobs, and for those who depend on these buses, but we in the Maritimes have made our choice. VIA rail could not make money here, our small provincial airlines couldn't make money here, and now Acadian Lines can't make money here. This is now the absolute centre of the car culture in Canada. The car rules all here. No one wants to use the Halifax Ferries, our bus system is underutilized, and few people bike. No way to escape it - in Nova Scotia and the Maritimes in general, the CAR is KING.

Hard Times

I hope this is not the start of worst things to come.The way of life we took for granite,is coming to a end.

Unacceptable situation!

Unacceptable situation! Totally ridiculous. Third World countries have more than the majority of residents in NS. Trains, planes and buses either not existing or too expensive.

Breakdown

There is breakdown between what the riders are willing to pay to travel and what is a reasonable wage to pay employees to operate these kinds of services. It seems to me that the current situation for Acadia lines is a combination of too little being paid for a ticket and too much being demanded for salary (with respect to the value of service) - that's not a recipe for a successful business. Regarding rail travel and the dayliners (man I miss those), which I thought of first when I read this, the added cost of aging privately owned infrastructure makes the situation worse (for instance, think of the cost of maintaining the Bear River Bridge on the DAR)

Private sector fumbles public service

This just proves that the free-market fetishists are off their rockers. If the market can't support a bus line, then it is the responsibility of the public sector to pick up the slack. As it was BEFORE they slashed all the trains. I don't mean to say I told ya so, but...

It was Gov't intervention

It was Gov't intervention through the URB and forcing the private sector to run un-profitable lines as well as a decline in ridership that led to the demise of the busline. It was never a free-market. Now you think the public should subsidize this? All you free spending NDPers love spending other peoples money.

bus away

What a surprise this is, well not really...people that commented on this so far do not understand how this could happen. This demise has nothing to do because it was a company out of province....please be realistic, the ridership was getting lower every year since it was sold to that company combine with price of gas, repairs, accidents due to bad bus drivers ( ah lot's of people don't want to remember the numerous incidents of the past) etc.... It's all about business pure and simple but don't worry the trains are waiting.... unless someone has a good and strong business plan...

Fire The UARB

So, the Utilities And Review Board(UARB) didn't have something to do with this did they? Back in 2010, "The Nova Scotia Utility and Review Board has denied Acadian Lines' request to discontinue some of its rural bus routes in the province...the board ruled that it is not losing money on its Annapolis Valley route" Right, bureaucrats on the UARB know better than the guy who runs the business. Sure they do.
AND just check this out - Herald,July 30, 2012 "Molega Tours Ltd. asked the Nova Scotia Utility and Review Board in May for permission to acquire a pair of new 56 or 58-passenger buses.
But the board rejected the plan in a decision Monday, saying there isn’t enough business in the motor coach industry to support two additional coaches"
In the Acadia Lines decision, they say they Lines are making lots of money. Those are the guys who are pulling out because of lack of money.In the Molega decision they say that they won't make any money. Do you suppose the Molega operators know their own busines, and if they do go belly-up, it is their money, why would we care?
Sounds like we have way too many rules and regulations, and bureaucrats, in this province for our own good. Right, what else is new.
And these are the guys who are going to rule on the Newpage operations, as well as the Muskrat Falls fiasco. Heaven help us.

Acadian LInes

Gorup Orrleans Express is just another Quebec based company that tossed yet another Maritime business into the dumpster.

Same on Acadian Lines Workers

The drivers in NB were getting greedy by wanting the same amount of pay an hour as the drivers in Quebec get and than the NS drivers would of asked for the same as NB drivers. They do nothing for work like the workers in Quebec do. The drivers and workers at Acadians Lines makes more than most people that have worked for years at a company. You start well above minimum wage and get a raise every 6 months. How can a company make money to keep the business going when the workers are always asking more and more money and above what they deserve? Sorry to hear that Acadian Lines is closing and affecting many people in the Maritimes but the drivers and workers have to look at themselves and see that they are partly to blame for this. Shame on you for being money grabbers and being part of the reason why this company has to close and hurt many people with travel.

Maybe you should look at that

Maybe you should look at that again .... we do not get raises every 6 months , in fact we were not scheduled to get another raise until the middle of 2013. And yes , we make decent money , but have you looked at the cost of living lately ? To say that we are not deserving of the money we earn is just ignorant . We work hard every day to keep people and parcels moving , and we in NS worked hard thru a company LOCKOUT. Placing the blame on us is completely wrong , have another look at the facts.

So You're Like

everyone else out there, except some are not making decent money. I believe that many many out there are trying to deal with the rising of power, taxes, fuel, groceries, etc, on a lot less than you make. If the money isn't there, it isn't there. If a business doesn't make money, they go under.

Maybe DRL Should Take Over Bus Service In Maritimes

Although DRL Coachlines, a Newfoundland and Labrador based bus service, has a poor reputation due to frequent mechanical problems, perhaps they should buy Acadia Lines from Groupe Orleans and continue to run bus service in the Maritime Provinces.

That way, it will keep bus service and ownership in the Atlantic Provinces instead of Quebec.

Acadian Lines

I am hoping that something happens before November and that they change their minds. I have Multiple Sclerosis and my medication comes down to me on the bus. It comes from VG Pharmacy and I rely on the buses to take it down to Cape Breton. But it won't only hurt me it will hurt a lot of other people relying on the bus for transportation!!!

Whose responsibility?

It is not the government's responsibility to make sure there is a means of transportation from the various centres around Nova Scotia.

If the hidebound out of date regulations of NS force a bus route to exist even though it was unprofitable (the same happened for the DAR passenger service from Truro to the valley in the 1970s), it is hard to blame the company for pulling out completely. It is also unacceptable if the same "questionable value" regulations prohibit someone from buying more buses to expand service or develop competition. If I want to buy 23 buses and open routes that make no or superb economic sense, it's my money to lose - the government should have nothing to say about it aside from basic licensing, accessibility and safety matters.

Looking at the human cost, none of this eases the sting of loss of access for those, clearly a minority, who depend on the service. But there is no such thing as "fair", especially in an economic backwater like Nova Scotia.

As with the trains, the bus service would not be cancelled if the majority of people had followed this simple rule - use it or lose it. Looking to the long term good for Nova Scotia, as opposed to today's urgencies, driven by yesterday's priorities, it would be best if public money is not used to prop up what has proven to be a failed service.

Nova Scotia is Bleeding People

The reason why the business is dying and not just with the Acadian Lines is because we're losing too many people out of the province. And who can blame them? There's better weather, better employment, less violent cities for your children...anywhere else but here. If you could easily leave and take your best friends and favorite relatives with you...wouldn't you go too? What's stopping me?

And frankly, I'm d***ed surprised the bus line lasted this long. The last time I used A.L. to travel to Halifax was back in the mid 80's when you could still afford them at $40-50. They hiked up the prices to $75 in the late 80s and suddenly it became more cheaper to hire someone to drive you up...until I could turn 16 and drive a car.

agree on some level

I agree with you on the "Greener Pastures" front. The Maritimes suffers form a supply and demand issue when it comes to people and jobs, too many individuals, not enough jobs. We also suffer from a doomsday complex where everything in this Province is always made into a big issue for nothing. We are surrounded Geographically by large cities and population centers: Boston, Toronto, Montreal, New York. WE travel to these places and see how other people live in these cities, then we come home and compare that the maritimes, and well it doesn't compare.

Strike/Gov Regs or greed

Nov 30 seems like they have left themselves time to do the deal - try to force the gov to put up money. If business was so bad they would shut the doors now. This just another attempt to force us all to pay. Well I will now stop for hitch-hikers. Only took the bus once and that was enough, as for those vans they look over loaded und unsafe.

Too Little too late

Nova Scotia and the Maritimes has a small, and fragmented population. Most people have a car through necessity, therefore the reliance on a service like Acadian lines is dwindling. Its easy to point fingers at businesses, but lets face it if they were making money hand over fist, they would keep the service going. Its the Age old mentality of this province to complain about losing something, when you yourself didn't use the service. I hear the comments from The Transit union, but let me ask Mr. Glenn Carr; How many time he used the bus service in the last 10 years? We are still a very small market, and it hard to keep a multi Province bus service afloat with our small Population.

Maritimes

The Maritimes should all form ONE province....Atlantica would be a nice name....our small numbered individual provinces are falling apart.

Motor Carrier Act And UARB Are The Root of The Problem

If you're wondering why Groupe Orleans Express/Acadian Lines struggled to make money in Nova Scotia, blame it on the outdated Motor Carrier Act and Utility and Review Board.

As you know, the Motor Carrier Act and Utility and Review Board tell bus and other mass transit providers how to run their bus services, and even planned routes are regulated as you can't travel any way you want.

Maybe if Bus Operators are not told how to run their business, and allowed to adjust their routes anytime they want to meet current demands, Acadian Lines will not be in this situation.

I should point out that the Nova Scotian Government didn't just screw up Acadian Lines, they also screwed up Newfoundland based "Party Bus" whom try to have their popular bus service in Nova Scotia, but greedy Limousine Drivers and heavy handed Utility and Review Board stopped it.

As a result of Acadian Lines and "Party Bus" demises, the outdated Motor Carrier Act and Utility and Review Board are the root of the problem.

Easy answer

Let Mrs Jessome and her N.S.G.E.U. followers purchase and run the bus service. It is their mantra that the province of Nova Scotia would be dead in the water without their members presence and buying power. She could also dictate that all members ride the bus rather and take their cars, heck even the deputy premier could take the bus to Cape Breton instead of that wimpy Air Canada Jazz bucket of bolts he likes to patronize. Win win all around, it is also called putting your money where your mouth is. I expect no takers, talk is cheap, private business requires action and profit, totally off the radar for governments and government munchkins.

Shuttle services

Profitable routes funding non-profitable routes doesn't make sense when ridership is at an all time low and your paying for full-size buses and expensive fuel. Now you'll see a lot more smaller (and cheaper) shuttle services popping up all over the maritimes.

smart business people?

why would a business run up a $12 million problem and take 8 years to do something about it?

Third World Countries

It's quite obvious all you folks stating that Nova Scotians don't have as much as people in third world countries have never been to one. I believe the smart business people in the area will devise a plan to ensure profitable routes will be serviced. As for the routes that don't make a profit, transportation isn't free, and it's not a right.

no more cheap long bus rides

no more cheap long bus rides to quebec & beyond! not happy with the decision. maritimers need a buyer right away. to keep the service the going. what are seniors, students, rural resdents are are going to do ? also with via rail to reduse it's service to 3 days a week in october instead what it was of 6 days a week. cheaper transportion seems to yesterday's news.

i see typical east coast

i see typical east coast mentally, people against each other no pride no nothing. the savor is the shipbuliding contract maybe? in the last 10 years nova scotia has loss it's mojo. as a province no leadership and negitive people. hope maybe the future can brighter? or consider change?

This is a chance for

This is a chance for enterprising souls to fill the gap. Get a passenger van and start your own service. It would be cheaper to have a family run smaller business servicing individual areas where you know your ridership/delivery routes.

Laughable

It seems quite fitting that when you have a socialist, pro-union government running a province with a union/government-handout mentality and a stifling regulatory environment, where everyone expects something for nothing, blah, blah, blah ... that privately-held businesses run for the door; not to mention anyone with an ounce of incentive and work ethic will also head for the door ....

Culture of defeat?? ... Harper hit the nail on the head, yet again.

This province has become a real $hithole.

Time to look at the regulators!

Acadien Lines going out of business is not the result of a Quebec based company owning it. It's a result of not being able to be profitable and run the business properly. If a route is not profitable and the province tells them they have to kepp it, than that's government control at it worse. At a minimum the province should have to subsidize the company for keeping that route; and I'm the last person to support a gov't handout. The Provincial Regulators in NS are killing the province. It's time to throw them out and let businesses operate properly without unnecessary government controls. Everything the NS governement puts their grubby hands on or controls on has failed...wake up.



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