Wednesday, May 4, 2016

Why Amtrak should get out of the infrastructure business:

Anyone who's ever traveled to O'hare International Airport might get the impression that United actually owns the airport, or at least a few terminals.  The reality is, however, that airlines based in America not only have no interest in owning their own international airport, but they would declare bankruptcy soon after acquiring one-unless of course they were reimbursed for the cost of operating and maintaining their airport.  This might raise more than a few eyebrows if Congress were asked to write a check to a private, for-profit corporation that was having trouble covering their operating costs, principally because their private infrastructure was such a drain on capital.  True, airlines generate millions of dollars in operating revenue that could be used towards operation and maintenance of a large airport, and true, the airline could make millions of dollars a year from other airlines landing their planes at a competitors airport; but the airport would have to be in a very desirable location, or else why would competing airlines even fathom landing there?   Although before United Airlines would consider purchasing, or even "taking over" an airport like O'hare, with which it has such close ties, all of their accountants and investors would urge (citing the disastrous future after this plan inevitably failed) that management wake-up and realize, "this isn't going to work."