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Are Passenger trains in N. America ever profitable
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<p>As of June 30, 2014, the Trailing Twelve Months average returns for the nation's airlines have been impressive. The return on sales was 7.75 per cent, 36.05 per cent on equity, 5.92 per cent on assets, and 11.78 per cent on total investment.</p> <p>The airline business is highly leveraged, and the margins are tight. So too are those for most if not all forms of commercial passenger transport modes. The financial picture for the nation's airlines has improved dramatically. Many airline analysts believe the financial future for the airlines is bright, but as anyone who follows the industry knows, it can turn on a dime.</p> <p>Not every flight generates a positive return. But in the aggregate most of them do. Otherwise, the airlines would not be able to generate the returns that they have been seeing.</p> <p>Amtrak has never generated a positive return. It had accumulated losses of $30.5 billion at the end of FY13. Had it operated under the some constraints faced by the nation's airlines, it would have been shutdown many years ago. If the airlines cannot figure out how to compete in the market place, they go out of business, i.e. Eastern Airlines, People Air Express, Northeast Airlines, Pan American, Braniff, etc. </p>
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