MONTREAL - The head of Via Rail says he's not overly concerned about plans for increased air service between Montreal and Toronto's downtown Billy Bishop airport.
Nearly $1 billion in capital expenditures over the next three years to improve Canada's largest passenger rail service will make it an even more attractive alternative to air travel, Marc Laliberte told a North American rail conference Monday.
Laliberte said the funding will be used to improve bottlenecks add new rolling stock, introduce improved WiFi and reservations systems and upgrade stations. Ultimately, train times will be reduced, allowing Via to use its trains to add more frequent service, including later trains between Ottawa and Montreal.
Air Canada (TSX:AC.B) plans to begin offering up to 15 daily flights between Montreal and Billy Bishop airport beginning in February. Porter Airlines is currently the lone commercial airline connecting Canada's two largest cities through the downtown airport.
While he's always concerned about competition, Laliberte said he's not scared by it, adding that Via Rail is prepared to operate a high-speed rail service in Canada should the federal government choose to start such a service.
The president of the Crown corporation wouldn't say if he favours such a system in Canada. But if the government choose to fund such a parallel network, Via Rail would be prepared to operate it.
Laliberte added that it's too early to say whether U.S. plans to expand its high-speed rail network will have an impact on Canada and its railway suppliers.
