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Re: PC: RE: Re: Why no money?
- Subject: Re: PC: RE: Re: Why no money?
- From: "Craig E. Hatter" <ns4610@xxxxxxxxxxxxx>
- Date: Wed, 21 Mar 2001 17:12:05 -0800
Gareth, here is a portion of your original reply to Bryan. You say these
lines have 7-20 years of subsidies. To me that is the government, i.e.
taxpayer footing the bill to keep the passenger business rolling. I have to
agree that passenger business cannot make a profit anywhere in the world
without infrastructure support. The fares will never cover anything but
operations and then with bare minimum margins at best.Again, as Bryan
stated, I wish this were different here in the US. But after 50 years of
building airports and the federal Interstate system, the train as a means of
intercity or intraregional transportation is a moot point. The Cardinal from
Louisville, KY to Chicago costs $69 one way and takes 12 hours to travel a
little over 275 miles. You can do this in your own car in a little over 4
hours and Southwest Airlines can do it in 45 minutes for the same price or
less roundtrip with one of their bargain fares. Now which are you going to
take? PC content is that the Cardinal uses the old PC Jeffersonville
Terminal as it's southern most point. For now.
Most of these routes are today producing
profits again, for their private-sector owners, although things are slightly
clouded by the fact that they do still receive subsidy from central
Government. However, the subsidy profile does drop over the lives of the
franchises (ranging from 7 to 20 years) agreed with the Inter-City route
train operators and all will be either returning a premium to the
Government, or will be not be receiving a subsidy, by the end of their
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