Higher Revenues for the Austrian Federal Railroads

Higher receipts and reductions in the number of employees significantly improved the financial situation of the Austrian Federal Railroads in 1988. Nonetheless, revenues only covered half of total costs (including pension payments). The federal government pays for most of the pension benefits and for the cost of services in the public interest. In modernizing the railroads special attention should be paid to the high cost of these services as well as to the great structural changes in the rest of the transportation system.