Title: How Amtrak Makes Money
Headings: How Amtrak Makes Money
How Amtrak Makes Money
Ticket Sales and Leveraging Infrastructure Assets
Key Takeaways
Amtrak's History
The Business Model
Ticket sales
State and Federal Subsidies
$8.1 billion
Leveraging Infrastructural Assets
Future Plans
New Acela Express Trains
150 mph
Siemens Contract
Improving Safety
Extending the Network
Key Challenges
Keeping Prices Down
NEC Repair Backlog
Federal Funding Cuts
Article Sources

Content: 18 ﻿
Improving Safety
Aging trains are a huge problem for Amtrak’s public image, which has undergone serious damage due to the company’s poor safety record of late. There have been eight serious crashes or derailments in the past five years alone. In response to these shortcomings, Amtrak has is implementing what it calls the Positive Train Control (PTC). The PTC is a communications network that combines GPS, radio signals, data centers and dispatchers to closely monitor the status of every Amtrak train, all the time. 19 ﻿
Extending the Network
Amtrak is working to extend its reach into some of the fastest-growing regions of the United States, i.e. the South, Southwest and Mountains States. Recently the rail provider added stations in Virginia and North Carolina. 20 ﻿ 21 ﻿ Going forward, Amtrak will also extend its NEC further into Maine and plans to lengthen its Southwest Chief long-distance line to Colorado. 22 ﻿ 9 ﻿
Key Challenges
Keeping Prices Down
To improve its competitive edge over busses, air travel and private cars, Amtrak must keep its prices down. This won’t be easy, even with government subsidies. As it stands, Amtrak tickets are generally cheaper than flights, but still cost considerably more than busses.