Are there ways that Amtrak could become profitable?
As a large fan of both Amtrak and the idea of a national passenger rail service, these are some ideas that I believe would give Amtrak the ability to turn a profit. These are not necessarily ideas that I would like to see them pursue. Some I would actually hate to see happen but it might create profitability.
1. Sell everything except the Northeast Corridor (NEC)
2. Emulate the NEC in other areas
3. Invest more in upgraded equipment
4. Increase ownership of infrastructure
5. On the long distance routes, make ticket prices actually reflect the cost.
6. Try some long distance trains that are coach only.
7. Increase service on the longer routes.
8. Sell off the Amtrak buses.
9. Express trains.
10. Have select LD trains that are sleeper only and have additional amenities
11. In Summary
What I propose is an all of the above approach. The NEC model works. Do everything possible to improve that. Equipment, increasing infrastructure to increase speeds, buying more trackage, etc.
Next use the NEC model to create pockets of profitability in other regions. For example, Amtrak's Empire State Service runs several times a day and does a fair job connecting the various major cities of New York. If this service was more frequent and / or faster (more upgrades to trackage and rolling stock) it could easily follow in the steps of the NEC. Likewise the Wolverine Service in Michigan.
These regional nodes would inject more cash into the coffers. With 3 or 4 regional copies of the NEC, Amtrak as a whole would be in much stronger financial position and could then reimagine the long distance routes.
Bottom Line: Continue to cut costs and discontinue unprofitable routes and services or invest boldly with larger deficits to make the improvements necessary to ensure profitability in the medium term.
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