sentences:  Although CN experienced significant losses on the Prince Rupert-Jasper passenger service, an application to discontinue the route was denied in 1972, but CN became eligible for an 80 percent federal subsidy.Sustaining losses of $3.3m (on costs of $4.1m) in 1974 for the 25,000 passengers carried, CN's reapplication to discontinue was again denied.In 1977, Via Rail was launched as a CN subsidiary to gradually take over CN and CP passenger services.