Free Republic
Browse · Search
General/Chat
Topics · Post Article

To: Bitwhacker
Amtrak would be $200 Billion behind while Davis would impose his 'fixed price' Amtrak fare...

What I don't understand IS AMTRAK's rate structure.

For example, I can hop a plane to New York out of Reagan National for $138 ROUND TRIP on the Shuttle. It costs me $157 ONE WAY on AMTRAK. [Rate quotes from US Air and AMTRAK websites.]

Now AMTRAK can put me right in downtown New York in about 2 hours, somewhat faster than the Shuttle, actually - by the time you consider getting through airport security, getting the taxi at the other end, etc. But is the savings about 1/2 hour in time really worth nearly $200? I don't think so. So I'd take the US Air Shuttle.

There is absolutely no competitive analysis being done by AMTRAK. Fact is, they are quite probably operating on that portion of the supply/demand curve where the supply so far outweighs the demand because the cost is too high. They need to drop their fares, and drop them considerably.

If that means they cannot run a profitable affair at that level, then they should go out of business.

85 posted on 06/26/2002 8:07:01 AM PDT by Chairman_December_19th_Society
[ Post Reply | Private Reply | To 79 | View Replies ]


To: Chairman_December_19th_Society
According to accounts I read, David Gunn's testimony notwithstanding, is that they make a lot of money on the Metroliner, and a lot of people ride it. I think the rate structure is distorted because they have to sock it to the profitable line payers to make up for the dogs..kinda like hospitals charging $75 for an aspirin -- it's not about item cost...
91 posted on 06/26/2002 8:32:03 AM PDT by Bitwhacker
[ Post Reply | Private Reply | To 85 | View Replies ]

Free Republic
Browse · Search
General/Chat
Topics · Post Article


FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson