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That has been true for many years - not a recent thing. And thats with government subsidies (and horrible labor work rules but the airlines have the second as well). What it really shows is the cutthroat nature of the airline business as the fares were really far below sustainable profit levels - see all the airline shutdowns, mergers and bankruptcy's for proof. Now with the soaring fuel cost there is no room to eat the difference and cost must go up. The train fares may be closer to true costs than airfares have been for many years.
The train fares may be closer to true costs than airfares have been for many years.
If you are talking about Amtrak, the fares result in a Mega Dollar deficit every year that Uncle Sam makes up in what I would call "Grants". At least the Airlines made money once upon a time like last year while Amtrak never has and railroads last made a profit on passenger travel back in the 50's.
If we follow this precedent, we will eventually have Amplane.
It really depends on where you are going. On some routes, Amtrak beats air hands down, and it is the reverse other places, especially for the overnight trips where one needs a sleeper. In general, European trains are much better, but some prices have gone up there as well.
As to sustainable airfares, the European LCC's seem to be able to sustain much cheaper fares than those in the US, and make money doing it. Of course, they are flying new, fuel efficient planes, and pay for their fuel in € rather than $. Everyone knows that the last place to invest is a US legacy airline, so I find it interesting that the one airline stock held by one of my mutual funds that only invests overseas is Ryanair Holdings, the largest of the European LCC's, and they even increased the amount of Ryanair stock held last quarter by 30%. In terms of fares, Ryanair is rock bottom, and indeed just had a promo giving away 2 million fall seats.
We're going from New York to Buffalo in August and the price was FANTASTIC. In the Northeast I'm used to seeing train prices that are higher than airline fares, but I'm realizing that it's worth it to check train prices, especially farther out.
The Amtrak operator who booked our tickets said the tickets go on sale eleven months out and that's when the prices are lowest. So the earlier you can commit, the better the prices are likely to be.
I know John (timeos2) is right, but every time I here the announcement: “C-S-X trains can move a ton of freight 423 miles on 1 gallon of fuel” on NPR, I too wonder why Air Fares have been less that Train Fares.
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