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[quote user="clarkfork"] Is there any provider of scheduled passenger transportation that makes money?  Airlines haven't; most have been in bankruptcy.  Intra city bus lines have lost money for years.  The same is true of subways and commuter rail.  Inter city bus transportation (Greyhound) has been on the skids for years.  Of course, passenger rail, before and after Amtrak, has been a money losing enterprise.  Are people really willing to pay what scheduled carrier cost?  Directly by fare box or indirectly through form 1040?  [/quote] For the year ended December 31, 2007, U.S. airlines reported operating profits of $7.4 billion and net income of $4.6 billion.  Of the 24 reporting airlines five had a net operating loss and seven had a net income loss.  The 2008 figures are not complete, but the picture is likely to be a bit bleak this year. Greyhound is owned by First Group PLC., which is headquartered in the U.K.  It reported in 2007 that all of its North American (NA) divisions, including Greyhound, had net operating profits and net incomes.  It did not break out the NA earning by division, in part I suspect because it had acquired Greyhound during the year and was trying to sort out the accounting.  The U.S. and U.K. use a different accounting model.  Greyhound had an operating profit of $81 million during the first half of 2008.  Revenues increased by more than five per cent while operating costs were nearly flat.  Interestingly, Greyhound carries about the same number of passengers as Amtrak.  But it serves more than 3,100 stations vs. approximately 500 for Amtrak.  It also has an 80+ per cent on time record, which beats Amtrak's on-time performance, although Amtrak's NEC on time record is better than 80 per cent.  The long distance trains wreck Amtrak's on time record. During 2007 commercial airline passengers received a federal subsidy of approximately .0049 cents per passenger mile whilst Amtrak's passengers received an average subsidy of 24.45 cents per passenger mile.  Motorists received a federal subsidy of approximately .0138 cents per vehicle mile.  I am comfortable in saying that Greyhound's passengers received a similar subsidy, i.e. the same as motorists.  In addition, all commercial carrier passengers received small state and local subsidies, but the amount is very difficult to determine. Every user of commercial carriers in the U.S. pays for part of the service through the 1040 as you have indicated.  However, wealthier tax filers pay more than less well off filers.  In fact, during 2006, which is the latest year for audited figures, 41.3 per cent of those filing a federal income tax return paid no federal income tax. You're correct.  No one should have to subsidize a commercial activity that he or she does not use. i.e. Amtrak, Greyhound, Delta Airlines, etc.  Unfortunately, we live in a country that subsidizes every form of transport, thereby distorting the market for them and causing a significant misplacement of resources.  It is not likely to change.
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