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Deluxe all-coach long distance trains?
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<p>[quote user="V.Payne"]</p> <p>No, the 2005 DOT IG report was almost immediately rebuffed in at least one report I am aware of from the "Advocacy" community and now Amtrak sees the incremental Revenue from Sleeper class as higher than the incremental Cost. In other words it lowers the operating loss, so why not differentiate the product. Honestly, coach should have two better defined classes.</p> <p>In particular the 2005 report assumed, even for the Western trains, that only one locomotive would be used reliability to the wall, checked baggage eliminated, and all dinning service eliminated, while <em>assuming with those changes that no coach revenue would be lost</em>. It did go on to say that perhaps just lowering the cost for all these services made more sense near the very end. The report was an unprofessional at best effort that would appear to be politically inspired not a actual analysis of the situation. [/quote]</p> <p>Please provide an audited analysis showing that the incremental revenues associated with Amtrak's sleeping and dining car operations cover the incremental costs. Please include fully allocated costs, including depreciation, interest, and miscellaneous charges from Amtrak's books.</p> <p>The 2005 DOT IG's report was rebuffed by those who did not like the outcomes. NARP led the parade. Many of its assertions were unsupported. The DOT is not in the habit of generating unprofessional reports. I read over NARPs objections and several others. Their criticisms of the report were speculative. They are not worth revisiting. </p> <p>Meanwhile, the losses incurred by most of the long distance trains have increased substantially, even after adjustment for inflation. From 2011 to 2012 the long distance train losses increased $85.8 million. From 2009 through 2012 they lost $2.3 billion, an increase of 16.8 per cent, before depreciation, interest, and miscellaneous charges.</p> <p>I track the two long distance trains that serve Texas, i.e. the Texas Eagle and the Sunset Limited, as well as the Heartland Flyer.</p> <p>Between 2009 and 2012 - I have not put the 2013 numbers into my spreadsheet yet - the Texas Eagle had a 32.2 per cent increase in ticket revenues, a 29.8 per cent increase in passengers, a 28.8 per cent increase in sleeping car passengers, and 18.6 per cent increase in its average load factor. The per cent of Eagle passengers booking a sleeper declined 1.4 per cent. </p> <p>The Texas Eagle has improved its financial results significantly. In 2013 it had the third lowest loss per passenger mile (16.8 cents), just below the Auto Train (14.0 cents) and the Empire Builder (15.5 cents). These numbers are before depreciation, interest, and miscellaneous charges. This is the good news. Now for the other side of the coin.</p> <p>The operating loss from 2009 to 2012 for the Eagle increased 37.3 per cent before OPEBS and 35.2 per cent after inclusion of these items. The loss per passenger mile increased from 16.8 cents to 18.8 cents and the loss per seat mile increased from 10.1 cents to 13.4 cents.</p> <p>Between 2009 and 2012 the Sunset Limited had a 36.8 per cent increase in ticket revenues, a 28.5 per cent increase in passengers, a 15.8 per cent increase in sleeping car passengers, and 21.2 per cent increase in its average load factor. The per cent of Sunset Limited passengers booking a sleeper declined 9.9 per cent. </p> <p>Over the same period the Sunset Limited's operating loss increased 16.2 per cent before OPEBS and 15.0 per cent after inclusion of these items. The loss per passenger mile decreased from 54.3 cents to 49.9 cents, but the loss per seat mile increased from 22.8 cents to 25.4 cents.</p> <p>According to Amtrak's audited records, sleeping car passengers contribute a proportionally higher per cent of ticket revenues. In 2012 the made up 14.6 per cent of the long distance train passengers and contributed 35.1 per cent of ticket revenues. Part of the ticket revenues would have been for for transportation, part for accommodation, and part for meals. </p> <p>To determine the full cost of toting sleeping car passengers, one would have to know the variable and fixed costs of the sleeper as well as the but the embedded cost of the dinning cars devoted to the sleeping car passengers. If Amtrak publishes information about its sleeping car costs, including the depreciation, etc., and portion of the dining car costs that should be allocated to sleeper operations, I have not found it.</p> <p>All of the information presented above is taken from Amtrak's audited records. None of it is speculative.</p>
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