Amtrak's Acela Woes Hurt Budget. Profitable Route Is Sidelined By Brake Problem, Crimping Already Tight Finances.
The brake problems that sidelined Amtrak's Acela Express service threaten to strain Amtrak's already tight finances while fanning the debate about how to fund intercity passenger trains in the U.S.
Amtrak pulled the popular, high-speed trains from service early Friday after cracks were found in disc brakes on the axles of passenger cars. That reduced train capacity about 20% on Amtrak's busiest route, the Northeast Corridor from Boston to New York to Washington.
Acela trains travel as fast as 150 miles an hour, carrying about 11% of Amtrak's 1.8 million passengers and generating 27% of Amtrak ticket revenue of $87.5 million in February, the latest month for which figures are available. But the trains have suffered from a string of glitches since Acela service began nearly five years ago, including cracks in locomotive brackets that sidelined the trains in 2002 for several weeks.
It is too soon to tell how the brake problems could affect efforts by Amtrak to fend off a determined push by the Bush administration to streamline its operations. The administration wants to cut off subsidies to Amtrak, funneling the money instead to states that would improve tracks and buy train equipment. Under that scenario, Amtrak would be forced to compete with other train operators and could be forced into bankruptcy by early 2006.
(4-18-04, Wall Street Journal.)
Amtrak pulled the popular, high-speed trains from service early Friday after cracks were found in disc brakes on the axles of passenger cars. That reduced train capacity about 20% on Amtrak's busiest route, the Northeast Corridor from Boston to New York to Washington.
Acela trains travel as fast as 150 miles an hour, carrying about 11% of Amtrak's 1.8 million passengers and generating 27% of Amtrak ticket revenue of $87.5 million in February, the latest month for which figures are available. But the trains have suffered from a string of glitches since Acela service began nearly five years ago, including cracks in locomotive brackets that sidelined the trains in 2002 for several weeks.
It is too soon to tell how the brake problems could affect efforts by Amtrak to fend off a determined push by the Bush administration to streamline its operations. The administration wants to cut off subsidies to Amtrak, funneling the money instead to states that would improve tracks and buy train equipment. Under that scenario, Amtrak would be forced to compete with other train operators and could be forced into bankruptcy by early 2006.
(4-18-04, Wall Street Journal.)
posted by Sid Cottingham | 5:21 AM
0 Comments:
Post a Comment
<< Home