Arriva projected €3m loss last year, but lost €18.7m by November

Far from cutting subsidies the new Arriva bus service cost public coffers €9.8 million in subsidies in the first five months of operation in 2011. The company started operations in July that year amid public outcry over an inefficient service that prompted the transport authorities to change the routes in December at an additional cost. The original subsidy agreed to when Arriva won the 10-year contract had to be in the region of €6 million per year for the duration of the contract. But subsidies continued increasing to almost €10 million in 2012, the first full year of operations as the company made €21.5 million in ticket sales. The revenue streams were not enough to offset the company’s expenses which led to a loss of €21.6 million in 2012. The figures are found in the voluminous file laid on the table of the House this evening by Transport Minister Joe Mizzi as part of the share transfer agreement between Arriva and Malta Public Transport Services, a State company. Mr Mizzi published all the documentation related to the agreement that saw the bus service nationalised on January 2, including Arriva’s annual reports and management accounts. Management accounts for 2013 showed...