“Let me give you a little political advice,” Transportation Secretary Ray Lahood told airline officials yesterday: “Do not be against high-speed rail.” Since airlines depend on the federal government to maintain and — they hope — fix the nation’s antiquated air traffic control system, they may feel like they have to follow this advice even though they are the most likely to be hurt by high-speed trains.
According to one aviation consultant who was present, LaHood’s statement was an “open threat to anyone who might question or oppose the administration’s as-is plan for high-speed rail.” Indeed, except for Southwest Airlines’ objection to high-speed rail between Houston and Dallas, no airline has spoken up publicly against the administration’s plans to heavily subsidize this new competitive threat to an already risky business.
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As American Airlines CEO Gerard Arpy told the same conference, air travel in the United States is incredibly affordable, costing (he said) as little as 4 cents a passenger mile. (More like 14 by the Antiplanner’s calculations — see previous post — but that’s still less than a quarter of the cost of Amtrak and less than a fifth of the cost of high-speed rail.) Yet this highly competitive industry returns little profit to shareholders, and subsidized trains in key markets are going to make the airlines even more marginal.