$44 Per Ride Subsidy

Last week, the Antiplanner commented on a proposed passenger train between New Orleans and Baton Rouge. Yesterday, The Advocate, a New Orleans weekly, published an op-ed on the same train.

The article calculates that the subsidy per ticket will average $44. Considering that the proposed fare is only $10 for the first few years, rising to $13 after ten years, this would be a horrendous subsidy, at least compared with other intercity trains. Subsidies to the average Amtrak train are about equal to the ticket price, not three to four times the ticket price. On the other hand, subsidies to urban transit average $3 for every dollar paid in fares.
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In comments on the op-ed, one of the defenders of the proposed train says, “in the 1930s in the middle of a Depression we built a network of airports that served as foundation for a commercial airline industry we see today.” The two clear differences are that most airports pay for themselves with landing fees, and the airline industry in the 1930s was rapidly evolving and growing. By comparison, the technology for the proposed train hasn’t changed since the 1930s, and passenger train ridership is declining. It is a continual source of amazement that so many Americans consider subsidies to an obsolete forms of travel such as streetcars, light rail, and intercity rail to be normal and acceptable.