Roadside Wire
Experts discuss Amtrak’s prospects for profit
- Published on Friday, 06 January 2012 13:50
The folks over at Freakonomics (which has a podcast I listen to almost religiously) have weighed in on the prospects of a profitable Amtrak. Is it possible? Maybe, but only if it is allowed to operate on a level playing field. While Amtrak infamously receives Federal subsidies, so does the airline industry and the road system. If we left every leg of our passenger transportation system to fend for itself, I have always believed that we’d come around to putting our rail system into full and better use within a single generation. But that’s just me. What do these guys think?
Freakonomics Quorum: Can Amtrak Ever Be Profitable?
Amtrak’s ridership and revenue has been steadily increasing over the last 10 years, and 2011 set a new ridership record with 30.2 million passengers, and $1.9 billion in ticket revenue. But, even though it took in $1.42 billion from Congress last year, it still manages to lose $1 billion annually. This is hardly a new development. Amtrak has a long and storied history of functioning at a loss despite government subsidies.
So, as we enter what appears to be a new era (maybe?) of government austerity, it seems worth asking if Amtrak can ever turn a profit without government help. We rounded up some people who pay attention to this issue and asked for their ideas to fix Amtrak, if it can be fixed at all.
Thanks to everyone in the Quorum for participating — and as always, let us know what you think in the comments section.