Amtrak: The Long Path To Profitability
July 2nd, 1994
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By Andrew C. Selden
I. CAN PASSENGER TRAINS MAKE MONEY?
A “sold out” sign is not something one associates with a failing business. Yet that is the paradox of Amtrak, the federally chartered and financed operator of America’s intercity passenger trains. Perceived by some as an economic anachronism, catering to occasional tourists and senior citizens, Amtrak in reality is bursting at the seams. Trains in the Southwest and Northeast Corridors often experience standees. Sleeping cars on long hauls are sold out, months in advance, around the country, much of the year. Amtrak estimates it loses $60 million a year from reservation requests denied for lack of available seats and berths.
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