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Washington to New York 2009 vs. 1957
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<P mce_keep="true">Amtrak's fastest Acela schedule between Washington and New York is 2 hours, 49 minutes. The quickest regional schedule is 3 hours, 12 minutes. The average Acela non-discount fare for an August 12<SUP>th</SUP> afternoon departure is $170 or 75.2 cents per mile; the average afternoon regional train coach fare for the same date is $49 or 21.7 cents per mile. A business class seat on the same regional train goes for $85 or 37.6 cents per mile. </P> <P mce_keep="true">In 1957, the year that I graduated from high school, the PRR's Afternoon Congressional clipped off the nearly 226 miles between Washington and New York in 3 hours, 35 minutes. The fare in a parlor car was $12.66 for the first class ticket, plus $2.59 for the seat, bringing the total to $15.25 or 6.7 cents per mile. The coach fare was $8.36 or 3.7 cents per mile. </P> <P mce_keep="true">Business class on the Acela costs 11.1 times the price of a similar experience on The Afternoon Congressional, which probably offered the best comparative accommodations to business class on the Acela. Business class on a regional train is nearly 5.6 times the cost of a parlor car seat on the Congressional. The cost of a coach seat on a regional train is 5.9 times the cost of a similar accommodation in 1957. </P> <P mce_keep="true">The Consumer Price Index (CPI), which probably is the best general indicator of inflation, increased 7.6 times since 1957. The business class experience on the Acela costs considerably more than the 1957 inflation adjusted price, but the cost of a coach seat and business class seat on a regional train costs less than the inflation adjusted prices. I suspect that an analysis of other corridors and fare structures would show similar results. Of course, the other corridors don't have an Acela class of service. </P> <P mce_keep="true">If Amtrak was able to charge prices that had kept pace with inflation, whilst maintaining the Acela spreads, it might be able to cover its operating costs, excluding the long distance trains? Unfortunately, inflation is not a determinate of current prices. It is pricing power, which is the ability to set prices to cover costs, generate a return for the shareholders, and remain competitive in the market place. The operative term is competitive in the market place. And this is where Amtrak runs into a problem, especially outside of the NEC and perhaps the California and Illinois corridors. </P>
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