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Hassles of Air Travel Push Passengers to Amtrak
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<p>[quote user="schlimm"]</p> <p>I believe the issue is not subsidy or no subsidy. It's using money wisely. More money for capital improvements makes sense. Since another poster showed that Acela is covering all costs (I'm assuming this includes depreciation), having corridor services that can cover operational expenses plus, within ~10 years of start up seems like the way to spend resources. Spending scarce money on LD trains that serve so few at such a high per passenger subsidy seems foolish. [/quote]</p> <p>The Acela does not cover its fully allocated costs, i.e. depreciation and interest, although it covers its operating costs and contributes to the capital costs. The amount of the contribution depends on how much of the NEC capital improvements are allocatable to the Acela. Amtrak does not provide us with enough information to make the determination.</p>
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