Summary: From Amtrak's beginning in May 1971 through September 1977, it incurred deficits totaling $1.85 billion. Amtrak placed its Government operating subsidy requirements for fiscal year 1979 at $613 million, but the Administration proposed $510 million. If Amtrak's subsidy is to be reduced, substantial reductions in service will be necessary, entailing discontinuation of the least-used routes. Areas in which greater management efficiency could be achieved are: development of productivity standards to control maintenance costs, improvements in food and beverage service and sanitary conditions, and a more rational approach to work rules. However, improved efficiencies in these and other areas would not appreciably reduce subsidy needs. Although Amtrak has grown since it began operations, passenger miles per train have decreased. Amtrak identified routes which it thought warranted development, but prospects for economic success on these routes are not promising. Benefits such as fuel savings, convenience, and reduced air pollution also depend on increased ridership. The most successful operation has been in the Northeast corridor which accounted for 55 percent of ridership in 1977. It is up to Congress to choose the level of subsidy and resulting service to provide to Amtrak. Congress has approved "Route and Service Criteria" designed to require consideration of all factors involved in rail passenger services.
