subsidies

Marco Anglesio mpa at the-wire.com
Fri Mar 22 09:59:45 PST 2002


On Fri, 22 Mar 2002, Jordan Hayes wrote:
> > on the rail side. Removing those subsidies would create a significant
> > price gap between rail and air travel.
>
> Why go in that direction? Why not _add_ subsidies to the rail side?

That's a very good idea. I think that rail is definitely a strategic mode of transportation and very much deserving of additional attention.

However, I also think that rail suffers from a few disadvantages. First and foremost, cities are pretty big and spread-out. Second, it's pretty slow, often not much faster than road, and limited to established lines and schedules.


> producers more viable. But I think Branson is on to something (as is
> Lufthansa, in Germany) by combining the rail and air networks. If your
> business plan is "get people from A to B" it would be great to see more
> effort on the rail side where appropriate.

It certainly would. Flights of less than an hour are probably good candidates for moving onto the rail network. Cross-country rail (or even cross-regional rail) might not compete nearly so well, although they'd probably survive as a low-cost alternative to air, especially if rail received a similar level of subsidy.

Marco

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