Re: Learn from passenger train history
Author: Erik H.
Date: 12-02-2012 - 19:04
Phoebe Snow's Boyfriend Wrote:
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> Airlines and intercity bus companies have both
> been deregulated. With a few exceptions, the
> airline industry continues to lose money and
> provide lousy service and Greyhound has abandoned
> much of its network. Megabus is too new to draw
> any generalizations.
Actually most of the airlines are, and have been, profitable. The "lousy service" I experienced on JetBlue a couple weeks ago made my best trip on Amtrak seem worse than Greyhound. Greyhound is still very much alive and well, and doing far better today than in years past. Of course it jettisoned many unprofitable (and lesser used) routes...something Amtrak needs to consider doing, considering that Amtrak's systemwide load factor is 50% - meaning that on any given day, only half of Amtrak's seat-miles have a butt in them. Not good...the airlines are well over 80% and approaching 90% (because while having an empty row of seats is popular for passengers, it's not good for the airlines - and they've realized they needed to right-size and reduce flights, or use smaller planes).
Since my Coke and Terra Blue Chips weren't subsidized by the federal government (and they were included in the air fare I paid, as opposed to an additional cost like Amtrak) there's no reason Amtrak needs to operate anything besides a single locomotive and three or four coaches. Spin off the dining and sleeper cars to a private company (a reincarnation of the Pullman Company?) That will eliminate a significant amount of Amtrak's staffing, the commissary functions, much of the car maintenance, a good chunk of locomotives - all of which support a "first class" service that hardly needs any government subsidy.