People may complain about the airlines, but the reality is that they are profitable and that means consumers are voting with dollars to embrace the economy style of flying. People can argue, but the airplanes are full so that means the model works. Unless people believe business exists to lose money.
Amtrak's new CEO, understanding that the expense side of the income statement (i.e., mostly employee and related benefit costs that are far higher than in any other comparable industry) cannot be adjusted due to the combination of federal style work rules and a vocal union, understands that in the current federal budgetary climate there is a need to enhance income. You do that by adding seats if there is demand. Like with the airlines, you will likely need to be a loyal customer to get a level of service above the most basic. And you will pay for it. That will fund capital improvements and Amtrak's bloated employee expenses in the absence of federal funding for discretionary (i.e., non entitlement spending) items. Given that we have now run up 21 trillion in debt and counting, choices will need to be made all over and this is just one small (Amtrak's subsidy is a very small portion of federal outlays) example.
Get used to this type of thing more and more as federal money become more scarce as we bankrupt ourselves on entitlements.
