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In a previous post I observed that labor costs for Amtrak Texas probably are a significant factor in the run-up of the total costs between 2009 and 2013 for the trains serving Texas.  Here is a supporting excerpt from an excellent article on the Coast Starlight, which appears in the latest issue of Trains. "Yet labor costs remain a significant challenge, as they are for all long-distance trains. In addition to the three lead service attendants and two chefs, each Coast Starlight has three sleeping car, three coach and at least two dining-car attendants when the trains is running a full summer consist. These Los Angeles-based employees generally make upwards of $20 an hour, non including the cost of benefits. They are on duty from before breakfast through late evening, away from home for four days straight, and then get six days off before returning to work, so 10 complete on-board service crews are required to keep all departments staffed.   Add the cost of operating crews changing at Portland, Klamath Falls, Sacramento, San Jose (for engineers only), San Luis Obispo; fuel; host railroad payments; plus portions of station salary and facilities, accounting charges from Seattle to Los Angeles, and it is easy to see how expenses can dwarf the $42.9 million of ticket revenue the train generated in fiscal 2013.  Although Amtrak will not divulge specifically how other overhead expenses are allocated to long distance trains, the company pegs the Starlight's total 2013 operating loss at $61.9 million." The labor and benefits are direct labor expenses traceable to specific employees. They are subject to audit by the Department of Labor(s). One can be sure that they are supported properly. The rents paid to the host railroads are direct expenses and are invoice supported. So too are the layover accommodation expenses for the crews. The depreciation expense is tied to the equipment. The consumables in the food service cars are invoice supported. Advertising and marketing expenses associated with the Starlight could easily be traced to the train. These items, which have audit trails that can be traced to the train, account for approximately 70 to 75 per cent of the expenses. Fuel, power, and utilities, together with Other, make up 17,8 per cent of the remaining expenses. Amtrak probably has a pretty good idea of how much fuel is burned by the locomotives, and whatever formula they use to allocate it should be pretty close to the actual fuel consumption. Other allocation driven expenses, i.e. shared station expenses, IT, accounting, finance, reservation centers, etc. make-up a relatively small portion of the total expenses. They could be off by 100 per cent, and they would not have a material impact on the bottom line for the Starlight or any of the other long distance trains. Allocating costs by a formula could overstate the expenses impacting a product line.  It could also understate the expenses.  Without access to Amtrak's books, it is impossible to know.  Having said that, I have submitted a Freedom of Information Act request to see if I can find out.
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