Amtrak - the US Government doing "business" and running up staggering losses

August 2, 2012
By Peter Samuel

House Transportation Committee chairman John Mica (Repub, FL) says his investigations into Amtrak's huge losses have found among other things that it manages to lose heavily on food and beverage service on its trains even though it has a monopoly and sets high prices.

In 2011 Amtrak managed to spend $206 million on food and beverage service while taking in only $122 million in revenue, a loss of $84 million.

Riders pay Amtrak $2.00 for a Pepsi but dispensing the Pepsi to the traveler costs Amtrak $3.40/can.

Amtrak charges $9.50 for a cheeseburger which costs it $16.15 to make and serve.

1,234 persons work in the food and beverage service of Amtrak.

Losses in the food and beverage service of Amtrak work out at $68,476 per employee.

Over ten years on Amtrak food & beverage losses totalled $833 million. This despite legislation that requires Amtrak to break even on food and drink.

Mica is quoted: "We have to end these unbelievable losses to the taxpayers."

http://transportation.house.gov/hearings/hearingdetail.aspx?NewsID=1691

TOLLROADSnews 2012-08-02


Leave a comment: