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Re: Booked out Melb XPTs



In article <7me7du$5ol$1@nnrp1.deja.com> jumbojim@my-deja.com writes:
>From: jumbojim@my-deja.com
>Subject: Re: Booked out Melb XPTs
>Date: Tue, 13 Jul 1999 02:14:30 GMT

>The assumption of the previous posters is that where there is a market,
>it must be satisfied. This is not true when it comes to rail passenger
>transport in Australia.

>All passenger services are subsidised by a taxpayer somewhere, sometime.

>This includes suburban (off peak) intercity and longer distance trains.
>I doubt if the Savannahlander even covers it's crew costs let alone the
>fuel bill.

>Sydney-Melbourne is no exception. So why throw good money afer bad to
>provide additional services. Competition can drive down costs but
>usually at the expense of service such as on-board staff or breadth of
>menu. Open slather could not cover the return on investment to provide
>the service unless fares were prohibitive.

>Rgds

>JJ


>Sent via Deja.com http://www.deja.com/
>Share what you know. Learn what you don't.


I suspect that the above is correct in so far as Govt run rail services go , 
but I would be interested to know just what subsidies GSR receive for running 
the IP , Ghan  and Overland other than subsidies to cover concession 
fareholders which they are required to carry at a loss.

If Govt Railways were able to simply charge full fares , ie no concession 
fares then they could run at a profit .
 Also if the assertion is that running more trains between Melb and Sydney 
would make more losses then the obvious solution is to run none.

MD