Doesn't that depend? If you can plan far enough in advance and make no changes the price to fly would be in the ballpark of what you're saying here. Make changes or last minute reservations and the price can fluctuate greatly. I don't think people, especially business flyers, think about price to the exclusion of all other factors. They're also likely, especially business flyers, to think about how long it takes to get there and if they can have a meeting near the airport. If the plane can do it a little faster, even 45 minutes, that's something to consider.
It seems to me Jordan is arguing that it's geography that makes the U.S. a plane and car/truck country.
[WS:] Be I am not talking only about business travelers. For most ordinary people, price does matter more than 45 minute difference in travel time. An it is really subsidies. Consider this - Baltimore - Philly on NE corridor regular Amtrak service is about $40 - Philly- Harrisburg (about the same distance) is about $20. So what explains the difference?
The only efficiently working rail service in this country is commuter rail, which is heavily subsidized - e.g. Baltimore - DC on MARC is $7, on regular Amtrak it $20.
The bottom line is that subsidies discourage the use of rail.
Wojtek