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only one auto train has me baffled
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<p>During FY10 the Auto Train lost $21.6 million before allocation of interest and depreciation. It had an average load factor of approximately 65 per cent. In FY09 it lost $21.2 million before interest and depreciation. </p> <p>In FY10 only two Amtrak trains had an operating profit: the Acela's and the Washington to Lynchburg trains. However, after allocation of interest and depreciation, the Acela's ran in the red. Most of Amtrak's depreciation and interest expenses is a function of its large capital investment in the NEC.</p> <p>I am not sure about the Washington to Lynchburg trains. The amount of interest and depreciation that they would attract, if Amtrak allocated depreciation and interest to each train route, which it claims it cannot do, at least for now, these trains may have made a true profit. To be profitable an entity (Amtrak) has to cover all of its costs, including depreciation and interest charges.</p> <p>If the Auto Train cannot cover its expenses between the northeast and Florida, which are two of the most densely populated regions in the country, it is unlikely that a similar operation in other parts of the country could cover their expenses. Given the financial challenges facing Amtrak and the federal government, it is unlikely that the Congress would support another money losing train. </p>
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