NS rail company face huge debt despite government aid

Over the past 6 months, in which travel was greatly restricted due to the coronavirus pandemic, the NS rail company has lost €185 million. Without government aid, this would have been far worse.

After March 12, when coronavirus measures were first announced in the Netherlands, passenger numbers dropped by 90%. Later, when regulations were relaxed and train timetables returned to normal, NOS reports that passengers increased to about 40% of pre-coronavirus times. Without government support, the company would have gone into debt by over a billion, RTL Nieuws reports.

Government subsidy

The UK’s government in particular opened their wallet for the NS, who operate in the UK under Abellio. NS was compensated 100% of losses due to COVID-19, which amounted to €703 million. The rail company further received €351 million from the Dutch government and €9 million from NOW aid.

But even with generous government donations, the NS remains €52 million in the red. This figure would have been even higher, but €107 million of tax owed to the authorities has been deferred. Since NS expects future profits to reduce dramatically, the company will also be taxed less in future.

Keeping NS afloat

The Dutch railway company is doing everything possible to keep train tickets affordable. To encourage more passengers, NS is introducing new subscriptions for commuters who work from home more often due to COVID-19.

NS is also in conversation with education and large business customers to better spread travelers over the working day. “Staggered travel is essential for an increase in the number of travelers,” says president-director Roger van Boxtel.

At the end of July, NS announced that reorganization was inevitable, and 2,300 jobs are expected to disappear. Van Boxtel expects passenger numbers to only return to 2019 levels in 2024. “The Dutch public transport sector has to adapt, but will not survive without further support.”

Do you think the train companies should receive more support? Follow DutchReview on Facebook to follow the latest news.

Feature Image: Alp Ancel/Unsplash

Emily Burgerhttps://emilycburger.wixsite.com/expression
Emily grew up in South Africa but has also lived in Egypt, the UK, Canada and now the Netherlands. She first came here for her Bachelors in Arts and Culture at Maastricht University and soon fell in love with the land of canals, clogs and cheese. When she's not daydreaming about sci-fi movies or countries yet to explore, you can find her writing for DutchReview.


Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Related posts

Latest posts

Weekly update: Dutch coronavirus infections continue to drop ahead of easing restrictions

The RIVM has released its weekly coronavirus figures from September 14 to September 21. The number of hospitalisations and deaths have decreased even further compared to...

Here’s how to smash the Dutch integration exam, stress-free

The Dutch integration exam: feared, made fun of, and heavily debated. However, the time might come when you have to confront this colossus of...

Far from the Arctic: an off-track walrus spotted on a Dutch island

For the first time since 1998, and after making quick stops in Denmark and Germany, a roaming walrus was seen on one of the...

The latest Dutch news.
In your inbox.