- Apr 5, 2011
- Baltimore. MD
Would the increased passenger revenue offset the capital costs of buying new equipment? On the other hand, it makes a good argument that the new LD equipment order should include as many cars as possible, as the bigger the order, the lower the unit cost for each car.Just to sum up re the Auto Train. I think its success can be attributed to multiple factors. It’s unique operating status as a mixed train helps, but the route hasn’t always made money. What really has worked is that the railroad made equipment available and applied successful yield management. Many of our trains could never make money because they simply are too short. The overhead of dispatch, T+E, MOW, access fees, stations, etc. cannot be spread across enough passengers to generate a profit on a possible average fare. I don’t know about being fully profitable, but many trains seem profitable on an avoidable cost basis and those numbers would be much improved if longer consists were available.