by Rhinecliff
Absolutely.
We have all heard that Amtrak's long-haul trains account for approximately $300 million of Amtrak's current $1.2 billion dollar annual subsidy. Taking that at face value, I would say they are an absolute bargain.
But would Amtrak really save $300 million a year by canning them? Putting aside the labor protections, which Amtrak could buy its way out of in a couple years, I really question whether, when the labor protection expenses are cleared, Amtrak's bottom line subsidy would be reduced by $300 million a year by discontinuing the long-hauls.
Just about every major station that Amtrak operates would still be needed to support the remaining "corridor" services. How many maintenance facilities could Amtrak really close?
Mr. Mead and the IG's office has never shown me anything to suggest that they understand Amtrak's fixed costs. Sorry Ms. Bly. I certainly do not wish to disparage anyone at the IG's office. But I am not impressed with their understanding of Amtrak's bottom line. Nor am I impressed with their undestanding of the practical realities of Amtrak's operations. The IG's office would do well to travel by Amtrak a little bit, and visit with its passengers and front-line employees. This stuff can't be learned in the beltway. It really can't.
We have all heard that Amtrak's long-haul trains account for approximately $300 million of Amtrak's current $1.2 billion dollar annual subsidy. Taking that at face value, I would say they are an absolute bargain.
But would Amtrak really save $300 million a year by canning them? Putting aside the labor protections, which Amtrak could buy its way out of in a couple years, I really question whether, when the labor protection expenses are cleared, Amtrak's bottom line subsidy would be reduced by $300 million a year by discontinuing the long-hauls.
Just about every major station that Amtrak operates would still be needed to support the remaining "corridor" services. How many maintenance facilities could Amtrak really close?
Mr. Mead and the IG's office has never shown me anything to suggest that they understand Amtrak's fixed costs. Sorry Ms. Bly. I certainly do not wish to disparage anyone at the IG's office. But I am not impressed with their understanding of Amtrak's bottom line. Nor am I impressed with their undestanding of the practical realities of Amtrak's operations. The IG's office would do well to travel by Amtrak a little bit, and visit with its passengers and front-line employees. This stuff can't be learned in the beltway. It really can't.
Last edited by Rhinecliff on Wed Nov 24, 2004 8:46 pm, edited 1 time in total.