Amtrak: Key Decisions Need to Be Made in the Face of Deteriorating
Financial Condition (Testimony, 04/13/94, GAO/T-RCED-94-186).

The proposed fiscal year 1995 authorization should help Amtrak address
its growing operating deficit.  However, it will not resolve the costly
challenges facing Amtrak in both the near and the longer term.  For
Amtrak to continue nationwide service at its present level, boost
service quality and reliability, and improve its overall financial
condition, it requires substantial operating and capital funding.  In
Europe, where competitive conditions are more conducive to rail travel,
intercity passenger service has required substantial public funding.  In
the United States, only a few well-traveled routes may ever generate
enough revenues to cover operating costs.  Amtrak and the federal and
state governments must decide whether Amtrak is to continue its present
course, expand into areas such as high-speed rail service outside the
Northeast corridor, or limit its operations to those routes where losses
can be minimized.  Under any scenario, federal and state support will
need to be commensurate with the assigned task.

--------------------------- Indexing Terms -----------------------------

 REPORTNUM:  T-RCED-94-186
     TITLE:  Amtrak: Key Decisions Need to Be Made in the Face of 
             Deteriorating Financial Condition
      DATE:  04/13/94
   SUBJECT:  Railroad transportation operations
             Transportation industry
             Administrative costs
             Equipment maintenance
             Differential subsidies
             Financial management
             Federal aid for transportation
             Proposed legislation
             Losses
             Mass transit operations
IDENTIFIER:  Amtrak Northeast Corridor Improvement Project
             Beech Grove (IN)
             Bear (DE)
             DOT Essential Air Service Subsidy Program
             High-Speed Rail Development Act of 1993
             Amtrak Northeast Corridor
             
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