Trains newswire story. I am curious why they cannot reach an agreement with Amtrak and what are the sticking points? Seems to me there is a lot more to the story than what was reported in newswire.
I agree. I wonder if the problem isn't revenue. The (unclear) story says Pullman has been running only two (or three) cars, instead of the contemplated five, to avoid paying Amtrak for an extra locomotive.
The extra locomotive for five cars is the same as when American European Express was operating its very expensive luxury service attached to the "Capitol Limited" in the early 1990's. It would appear that this added expense was not factored into its operating budget when Pullman Rail Journeys began operations. Somebody on Ed Ellis' staff dropped the ball in this case.
CSSHEGEWISCH The extra locomotive for five cars is the same as when American European Express was operating its very expensive luxury service attached to the "Capitol Limited" in the early 1990's. It would appear that this added expense was not factored into its operating budget when Pullman Rail Journeys began operations. Somebody on Ed Ellis' staff dropped the ball in this case.
Editor Emeritus, This Week at Amtrak
The copy of Amtrak's fee schedule for private cars I have indicates that an extra engine costs $4.25/mile, which would be a little more than $3900 one way for the City. I can understand that being a deal breaker, but I don't understand why it was not anticipated by Pullman when setting their trip charges.
Given the opaque cost data Amtrak makes public -- and perhaps the situation is no better internally -- I wonder how that $4.25 relates to the costs Amtrak incurs.
Dakguy201 The copy of Amtrak's fee schedule for private cars I have indicates that an extra engine costs $4.25/mile, which would be a little more than $3900 one way for the City. I can understand that being a deal breaker, but I don't understand why it was not anticipated by Pullman when setting their trip charges. Given the opaque cost data Amtrak makes public -- and perhaps the situation is no better internally -- I wonder how that $4.25 relates to the costs Amtrak incurs.
Considering what the IRS allows for automobile mileage - $4.25 per mile for a locomotive sounds very cheap.
Never too old to have a happy childhood!
If their gross margin per trip is so adversely effected by just $4000.00 each way. They are operating on the razors edge.........in my opinion. Their margin should be larger than that to be considered a profitable company.
Exactly, not easy to make money in the passenger business.
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