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<p>[quote user="henry6"]</p> <p>Virtually any and all businesses offer discounts for bulk buying, so why shouldn't Amtrak? You have to understand business, advertising, marketing, etc. to run any business, passenger trains included. [/quote]</p> <p>If discounts fill otherwise empty seats, cover the variable costs, and contribute to the fixed costs, offering discounts is an effective business strategy. If these conditions are not met, discounts are a bad idea. Without access to Amtrak's books, we don't know whether the discounts are an effective business strategy.</p> <p>If a competitive business offers discounts and the aforementioned criteria are not met, the shareholders take it on the chin. Amtrak, however, is not a viable business. If its discounts fail to meet the aforementioned criteria, the taxpayers wear the consequences.</p> <p>As of the end of Fy12 Amtrak had accumulated losses of $29.3 billion. If the numbers are restated inn 2012 dollars, the accumulated losses would be north of $40 billion. Amtrak should not be offering discounts or services that acerbate these losses.</p>
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