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new Viewliners -- possible sleeper route assignments ?
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<p>Whether the additional capacity will be utilized, thereby generating the anticipated revenues, will be a function of how many passengers are currently turned away because the sleepers are sold out, as well as the generation of new business. </p> <p>What is the basis for the assumption that the revenues will increase 1.5 times the current revenue streams for the cars?</p> <p>Approximately 15 per cent of Amtrak's passengers use the long distance trains, which carry less than one per cent of intercity travelers. Of those riding on the long distance trains, only roughly 15 per cent can afford to spring for a sleeper.</p> <p>Based on FY11 numbers, if Amtrak dropped the long distance trains, it could break-even on system operations with an average fare increase of $7.41 per passenger. The state supported short distance trains (less than 750 miles) would still incur an operating loss, but the excess operating profits on the NEC, thanks largely to the Acelas, would offset the underperformance on the state supported trains. </p> <p>To recover all of its costs, sans the long distance trains, Amtrak would have to increase fares an average of $33.23 per passenger, which would be a non-starter for coach passengers, although it might be doable for first class passengers. Different segments would see varying price adjustments. </p>
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