Amtrak's New Fares a Clue to Its
space at the super-cheap fares succeeded on a
Troubles
number of days associated with heavy
Thanksgiving travel.2 1 Policymakers who
Amtrak's central marketing ploy has long
been to offer low fares, one thing that has
control the public's purse strings must ques-
made federal subsidies per passenger much
tion Amtrak's costly practice of instituting
higher for Amtrak than for any other mode
giveaway fares during busy travel seasons and
of transportation. But why must Amtrak
while supposedly inundated with airline trav-
launch a new round of super-cheap fares
elers. The giveaway fares appear to be a move
after the post-September 11 influx of airline
to build ridership at any cost. Unfortunately,
travelers? A September 29 check of Amtrak's
that cost could be billions of dollars in new
Web site reveals travelers can "save up to 70%
taxpayer subsidies.
off regular coach fare." These "exclusive
Amtrak and Its Future Riders
online fares," even with Amtrak limiting the
seating, are astonishing. For little more than
Will Amtrak's new riders stick with the
the price of a roundtrip on Washington's
railroad? History says no. The nation suf-
subway, it's possible to ride Amtrak from
fered a major shutdown of commercial avia-
Indianapolis to Chicago. Generally effective
tion in 1966 when labor strife caused simul-
October 9, the one-way fares are
taneous strikes at virtually every U.S. airline
for several days. The effect on rail traffic, then
$3.40--Indianapolis to Chicago
operated by private railroads, was electrify-
(This fare was $6.23 in April 1953.)16
ing. Passenger trains were full for the first
time in years and long lines were seen at tick-
$3.90--St. Louis to Bloomington, Ill.
et windows. Prior to this strike, the passenger
$6.60--Chicago to Jeffersonville
train had been in a long downward spiral,
(Louisville)
and it was typical for traffic to decline by 7 or
$11.70--Cleveland to Philadelphia
8 million passengers from year to year. In
$12.20--Chicago to Harrisburg
1966, however, the airline strike caused a lev-
$13.60--Seattle to Vancouver, B.C.
eling off in the decline to only 996,000 pas-
$15.90--Sacramento to Bakersfield
sengers. But when the airplanes returned to
$16.00--Philadelphia to Chicago
the skies so did the passengers. The 1997
$17.20--Chicago to Detroit (The
Amtrak fare in 1971 was $16.25.)1 7
traffic fell by 7.2 million passengers com
-
pared to the prior year, rather typical for that
$17.40--Chicago to St. Louis (The
Amtrak fare in 1971 was $13.50.)1 8
era.2 2 Amtrak will not experience such a
sharp loss, because the billions of dollars it
A string of
receives in taxpayer subsidies enable it to
Other oddities: Take, for example, a train
reports in recent
retain riders through pricing schemes. The
that Amtrak repeatedly calls a "success"--the
years paints a
private railroads that preceded Amtrak had
Texas Eagle, which runs between St. Louis and
no such access to public subsidies.
San Antonio. Amtrak offers a discount fare of
picture of a rail-
A labor strike is different from a wide-
$81.60 for exceptionally long periods, for
road that is
spread fear of flying, but even terrible air
example, from September 25 through
unable to control
crashes have failed to spark a long-term shift
December 17, 2001, and from January 7
to passenger rail. On May 25, 1979, an
through June 14, 2002. Cut-rate deals are also
expenditures.
American Airlines DC-10 crashed after takeoff
available in the busy Washington-Boston
from Chicago's O'Hare International Airport,
Northeast Corridor, where Amtrak says the
traffic increase has been most pronounced.1 9
resulting in the highest death toll in American
aviation history. Amtrak experienced a traffic
Amtrak is still offering a "buy two, get one
gain, which quickly dissipated.
free" promotion for rides on the Acela Express
between Boston and New York.20
Consider the peak of the 1995 summer
travel season. New York's three airports were
As of September 29, attempts to book
4