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A possible new direction for Amtrak Long Distance

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[quote user="John WR"] Thank you for the link to this interesting report, Carnej.  I can understand NARP's consternation, especially with this kind of conclusion:  " The elimination of sleeper service alone, without the elimination of any associated food service or other amenity, produces a net loss on an operating cost basis under assumptions B and C on most routes."  (Emphasis added.)   Actually, this report is not about eliminating sleeping car service.  Almost all of the loss is attributed to the dining car.  It seems to me there is a simpler solution.  Charge sleeping car passengers for meals just as coach passengers are charged for meals.  According to the report, that would cover almost all of the loss.   In 2005 President George W. Bush did oppose Amtrak and wanted to eliminate all subsidy for it.  That would have driven Amtrak into bankruptcy.  However, by October, 2008 President Bush had revised his position.  The Wall Street Journal reported he signed legislation that doubled the Amtrak subsidy.  Here is the link:  http://online.wsj.com/article/SB122298615110699903.html [/quote] The following quote from the report suggests that elimination of the sleeping cars and dinning cars was a critical element in the IG's repport:   “Our analysis eliminates the revenues and expenses associated with sleeping cars and food service. Overall, our analysis shows that eliminating sleeping cars, dinning cars (sleeping class fares include meals in the dinning car) and other amenities (on board entertainment, lounge seating, checked baggage service, and food and beverage service on Amtrak’s long distance routes could save between $75 million and $158 million per year in operating costs and avoid an additional $79 million in planned capital expenditures.”  I find it hard to conclude that the IG was not recommending the elimination of sleeping car service. However, the report does allow for the possibility of modified sleeping car service, i.e. trimmed down, but it would still not be able to cover its capital costs. The report recommends that Amtrak study the recommendations, direct and otherwise; and review its operations of the long distance trains for potential cost savings. The Amtrak Board of Directors, which was a recipient of the report, apparently agreed to take the IG's findings on board.   Irrespective of the IG's recommendations, few if any changes have been implemented. Amtrak is running its long distance trains as if it is the 1950s, ala sleeping cars, dinning cars, lounge cars, checked baggage, etc.  And it is losing more money on them than ever before, i.e. $515.1 million in FY09; $569.6 million in FY10, and $615.4 million in FY11. And these numbers are before depreciation, interest, and miscellaneous charges.
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