[URBAN NOTE] "UP Express expected to be long-term money loser"

[rfmcdonald]

blogTO reports, after The Globe and Mail, that the Union-Pearson Express is expected to be a money-loser. Given the fierceness of the debate in the comments, I feel qualified at least in reserving judgement. Certainly the economics are going to be a huge issue.

The Union Pearson Express may get you from downtown Toronto to the Mississauga-area airport quickly, but it's not exactly the most popular service in the city.

When it debuted, many called the train too expensive - and that was hard to argue with considering a one-way fare used to cost $27.50. And at one point, trains were running at just 10 per cent capacity.

In March, Metrolinx slashed its fare; a ticket is now $12, or $9 if you pay with a Presto Card.

While ridership is up, the Globe and Mail says that the UPX won't be making money for the province any time soon. In fact, it's a loss leader and will continue to require taxpayer money in order to run.

The Globe analyzed a 228-page internal Metrolinx report and writes that the transportation agency initially made UPX fares higher in order to recover its costs. When that didn't work, it lowered them.