NYCRRson wrote:Yes indeed the railroads paid outrageous taxes on the facilities that they built with their own money. And yes indeed the government built airports and air traffic control facilities with tax dollars...Would different tax policies have changed the final outcome...
Being that New York
was and
is a high tax state...
Would it have changed things? If the airlines had to pay more of their own costs it would've given the railroads a greater cost advantage in fares. In a state like New York that might have translated to just enough additional traffic to have made at least some difference.
Example - Reportedly in 1967 the New York Central lost $500,000 out-of-pocket on their passenger service. Five hundred additional riders paying $20 fares
per week would've meant NYC breaking even. That doesn't sound like a pie-in-the-sky fantasy to me.
Back in the 1950s Central complained bitterly about some of the perks the old Mohawk Airlines got in terms of hundreds of thousands of government dollars spent to allow the airline to serve small cities in New York. New air terminals, longer runways. Places the New York Central also served.