george matthews wrote:
That's assuming they are really investing their own money.
Well, their shareholder's money.
Would they actually lose money if the service fails to attract enough paying customers?
IMHO, they expect to 'lose' money on it, period. They don't care. They'll make it up on the Strip.
I suspect the overall capital cost for equipping an electrified line for this distance is much larger than they think.
These guys aren't new to big construction projects. They toss up new casinos all the time in LV and each one seems to gt more ambitious than the last...
Big corporations have a habit of shifting the risk on to others - which is part of the reason for the current financial catastrophe
My guess is they're hoping that eventually, they'll be able to shove it off onto California, if the Cali HSR system ever gets around to being built. I'm also starting to wonder what an expansion of the airport in Las Vegas would cost, and take a wild guess who'd end up paying for THAT one.
Look at it this way: The results basically are:
A) The line breaks even and brings in more gamblers. They end up rich.
B) The line doesn't break even, but brings in more gamblers. They make at up at the slots and end up sort of rich.
C) The line's a total flop. They lose a few billion over a few investing firms, but the state takes the line over and it brings in a trickle of gamblers for free, and the ridership eventually builds once a cali HSR connection appears. Hey, wait a second - they make their money back, again....
D) The line's a flop and the state refuses to take it over and it gets abandoned. The ROW gets sold and they write off the rest...