STC SEES PASSENGER NUMBERS RISE FOR THE FIRST TIME IN 16 YEARS

Released on April 21, 2006

The Saskatchewan Transportation Company (STC) saw the number of passengers it carried in 2005 increase by almost 9,400, or about 3.6 per cent, compared to 2004. This follows 15 years of decline in passenger numbers, the company's 2005 Annual Report reveals.

"While the high cost of gasoline for the latter half of the year undoubtedly contributed to this increase, an aggressive, targeted advertising campaign and innovative programs like the Centennial Youth Excursion Pass played an important role in this success," Minister responsible for STC Eldon Lautermilch said. "This increase in passengers underlines the fact that Saskatchewan people continue to see STC an important service to rural Saskatchewan."

"There were a number of exciting projects undertaken by STC during 2005. A new passenger and freight depot and head office facility was approved for construction in downtown Regina, the company started a small-scale experiment in the use of bio-diesel fuels, and the Centennial Youth Excursion Pass allowed a great number of young people to spend some time during our centennial summer touring our great province."

In 2005, STC travelled some 3.2 million miles, servicing 275 Saskatchewan communities and carrying more than 267,000 passengers. The company saw increases to its passenger, express and charter revenues during the year, and the operating subsidy it received from the Crown Investments Corporation of Saskatchewan was $3.5 million, $200,000 less than the subsidy received in 2004.

"While STC continues to run a number of routes where the passenger count is too low to recover the cost, I think it is important for the people of Saskatchewan to have access to this service. The subsidy paid to STC is money well spent so long as Saskatchewan people have access to this service to meet their needs for travelling for medical, family, business and other reasons," Lautermilch said.

The company lost about $5.4 million, an increase of about $700,000 from the previous year. Increased fuel and salary costs were primarily responsible for this.

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For More Information, Contact:

John Millar STC Regina Phone: (306) 787-6807 Email: jmillar@stcbus.com