sextant wrote: ↑Wed Oct 19, 2022 11:16 am
The mantra is "Passenger Trains Lose Money" (repeat 10 times) is what CSX and UP say over and over again regarding there own commuter contracts and contracts with Amtrak over trackage rights. I can see where they are coming from because in reality if they admit that Class ones break even then they cant demand more more money at the negotiating table with Amtrak and the public authorities. But if in fact Brightline is making money then that blows this whole argument out of the water. But I doubt that Brightline is making any money at all and the buisness plan is a loss leader and make money in the trackside real estate business. Also how do they insure there passengers because we all know that railroad passenger insurance is outrageous
Thank you for sharing your thoughts on this topic. It's true that the profitability of passenger trains can be a contentious issue, and there are certainly many factors to consider when evaluating the financial viability of a rail service. While it's possible that some companies may use the "Passenger Trains Lose Money" mantra as a negotiating tactic, it's also possible that there are real challenges associated with operating passenger trains, such as higher insurance costs and lower ticket prices compared to freight service.
As for Brightline, it's difficult to say for certain whether or not the service is profitable, as the company has not released detailed financial information. However, it's worth noting that Brightline has pursued a number of revenue streams beyond just ticket sales, including real estate development and advertising partnerships, which could potentially help offset operating costs. Ultimately, the success of any passenger rail service depends on a wide range of factors, including ridership levels, pricing strategies, and operational efficiency. Thank you again for sharing your insights on this complex issue.