As I got more and more puzzled about all the numbers of the incredible largess that PVs and Charters bring to Amtrak that Amtrak could collapse without, I decided to dig a little deeper to get a feel for at least the orders of magnitude involved. What I discovered based on the 2017 Audited Financials of Amtrak
are as follows:
Passenger Related Revenue was $2.54 billion, which includes $363 billion in F&B and State contribution. After taking those out ticket revenue is $2.19 billion.
Other revenue was $762 million, which includes among other things special move and charter revenues, etc. The item covering those is called "Transportation" in the statement and it accounts for $181.6 million in all. So that is pretty much an upper bound of the PV and Charters related revenues.
Now, since there is no way to figure out the cost of providing services for that revenue stream, all that we can say is that if all Charter and PV operations were stopped cold turkey, that would constitute possible loss of $0.18 billion of revenue out of a total revenue of $2.54 billion, noticeable amount but not a deal breaker by any means.
So absent that business in its entirety, Amtrak's revenues would be $2.36 billion instead of $2.54 billion.
Since we do not know the cost associated with that "Transportation" revenue stream, the net amount of P/L is probably substantially less than that, But still, it may very well be a number at least in double digit millions possibly. The number $4 million to $10 million net positive has been mentioned by various parties in this regard. This obliquely suggest that the cost of providing that service is somewhere between $171 million to $177 million, i.e. the net impact on Amtrak's bottom line would be that $4 million to $ 10 million in the net revenue of $2.54 billion.
Anyway, that's all I could dig out and thought others might find useful.
This should not be seen as an argument for or against running PVs and Charters. It is just to get a better grounded argument. One thing that this does not take into consideration at all are the non-monitized intangibles, which naturally cannot be included in this analysis for the very fact that they are hard to quantify - which also might mean that no one has a clue what their real impact is.
Edited by jis, 30 March 2018 - 11:23 PM.