2023-07-28 17:04:42
CEO of RATP since November 23, 2022, Jean Castex presented his first financial results to his board of directors on Friday July 28. It’s a cold shower and a reminder of the realities of business: when costs increase without changes in revenue, it loses money. However, the RATP – in addition to an impact of 6 million euros linked to the June riots – is bearing the brunt of the effects of inflation. The press release from the company lists the cost increases: 74 million euros more on salaries, 103 million for energy and 26 million for “others”, a total of 203 million. “At mid-year, the impact of inflation already exceeds that observed in previous years, i.e. 200 million for the whole of 2022 and 56 million in 2021”alerted management.
We expect to find in the following lines the efforts made by the company to reduce its costs and absorb the shock. The day before, when presenting its results, the SNCF, for example, specified that it had reduced its expenses by 390 million euros in the first half, or 2% of its total costs, by scrutinizing all its projects and all its projects to limit the impact on ticket prices. The RATP promises to control its charges, but without giving details and without lingering…
Jean Castex cannot play on the price of the ticket either: it is not he who sets it. He can only count on what his major client pays him: Ile-de-France Mobilités (IDFM), the transport organizing authority chaired by Valérie Pécresse. However, the RATP boss found in his contract with IDFM “contractual indexation clauses which are no longer adapted to the current inflationary environment”, explains the press release. Compensation for salary increases, for example, is capped at 1.5% per year, while the CEO has signed an agreement with all unions, except that of executives, providing for more than 5% increase. The RATP notes that the index used to offset the price of electricity is also very unfavorable to it.
“Recover production”
Jean Castex therefore turns to IDFM. Problem, its president, Valérie Pécresse, herself has a hard time making ends meet. She plans to increase the Navigo pass again and has been asking the government, for almost a year, the possibility of raising taxes, in particular the mobility payment that companies pay, but also the tourist tax that the tourists. As the former ministers of Jean Castex, with the exception of Clément Beaune, in charge of transport, do not rush to give the green light, it is for the moment difficult for him to renegotiate the RATP contract.
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