Discussion of LD routes begins on page 50. Mostly a plan to control costs rather than improve service, including food and beverage expenses. Apparently Amtrak will try to change their approach in getting their annual handout:
" Rather than partially subsidizing Amtrak’s losses for these services, we will advocate that the Federal Government pay Amtrak an agreed price to operate Long Distance routes, just as it pays contractors to build military equipment or technology systems. Like any other Federal contractor, money received from the government should be accounted for as revenue from a customer –not subsidy from a public entity. A shift to this type of relationship will fundamentally change Amtrak’s ability to plan and invest for long-term value like any other for-profit corporation, and would end the cross-subsidization of the operating losses of these services by the NEC"
Posted by dns8560 (Member # 15184) on :
Would you say this is the right approach for now? I mean, I don't know. I'm honestly asking. When you label the subsidy a "handout" it sounds like yes.
Dave
Posted by palmland (Member # 4344) on :
Dave, I'm not sure there is any difference between subsidy and handout but a different strategy is certainly called for so Amtrak can get a more reliable source of funding. I'm not sure if it would be an improvement but good to try a fresh approach even if it seems to be mostly semantics.
But Amtrak is clearly signaling that they're ok with ending "the cross-subsidization of the operating losses of these services by the NEC". If so, how do they pay for LD trains? Saving money on dining car losses won't cut it.
Posted by yukon11 (Member # 2997) on :
Maybe you could say one person's subsidy is another person's handout, and vice versa.
I agree, if a fresh approach works, more power to them.
I can't help thinking that, someday, PRIIA will be discontinued and Amtrak will demand, for any state where a LD train goes through it, the state pay an annual franchise fee. The fee would be determined by Amtrak, or, fill in the blank. If any state balks, the entire long distance route will fall into the abyss.
Hope this won't happen, but can't help thinking.
Richard
Posted by Gilbert B Norman (Member # 1541) on :
Komerades, I've veen reading about your Five Year Plans for the past fifteen years.
Fred Astaire Posted by notelvis (Member # 3071) on :
Has Amtrak ever really had a five year plan?
Or another question GBN has wondered about for longer than the past 15 years, will the LD trains be around in 5 more years?
Posted by chrisg (Member # 2488) on :
No word on Superliner 3 cars that Amtrak needs in the short term?
Chris
Posted by notelvis (Member # 3071) on :
It is really difficult to be optimistic right now with so many equipment needs not being addressed.
I've only this year emerged from a six year salary freeze during which my wife and I often conjectured that if the heat pump, the refrigerator, the dishwasher, and the microwave all stopped working in the same month, which one would be the most necessary to replace.
The point being that new superliners are needed *soon*, new single-level coaches are needed *soon*, new single-level lounge cars are needed *soon* and there seems to be no real inclination to do anything *soon*.
This quote from page 21 in the 'plan' sums it up "We are rapidly approaching the time when equipment condition will limit Amtrak’s ability to maintain service at current levels".
Posted by Gilbert B Norman (Member # 1541) on :
While, as captioned within the opening posting by Mr. Palmland, what Amtrak wants regarding the Long Distance trains is unlikely ever to be enacted, I think the concept behind such is quite interesting.
This is simply making the LD's the same as a Locally sponsored service. However, in this case the sponsor will be the US Congress. Sponsors have quite a say, and rightly so, regarding their services such as reservation requirements, on board Food & Beverage, fare levels, classes of service, and marketing. This means that the US Congress will directly decide whether the Dining service, if any, will be "just feed 'em" or Maxim's, whether or not Sleepers are offered, and if so, whether or not any special amenities will be available. Possibly this "Amtrak America" brand will be the harbinger of disassociating Amtrak from the LD's.
If such an arrangement would ever come to pass, the public would know that these LD money pits are the playthings of Congress, and that Amtrak, as an entity, is something mighty close to a self sustaining business enterprise.