Thursday, November 19, 2009

Railroads Driving Airlines Out of Business

Now there's a headline you don't see every day. But according to Air Transport World Daily, that's the case in China, at least for certain domestic routes. Spring Air, a regional airline, has decided to cut back on short-haul routes of 600 miles or less because of heavy competition from trains. Separately, a China Southern Airlines spokesman commented on the benefits of rail travel compared to air travel: a better safety record, more convenience, and lower fares. This has driven China Southern to focus more on international travel in the coming years (though I'm not sure I'd want to travel any airline whose safety record isn't as good as a railroad's).

Here in the US, it will probably be some time before we see anything similar. With the exception of a few routes in the Northeast Corridor, rail travel in the US is not serious competition for the airlines. That may change in the future, though, as more federal stimulus money gets released. In California, the prospect of a high-speed rail link between Los Angeles and San Francisco is looking more encouraging, although it will be many years before it's complete. The expected 3-hour travel time would give airlines serious competition.

If you've ever spent much time in Europe or Asia, you'll recognize just how far behind the rest of the world our rail system is. Take the train from Frankfurt to Stuttgart, or from Geneva to Switzerland, or from Kyoto to Tokyo, and you'll quickly realize what a well-run rail system can offer. I doubt we'll ever again see railroads seriously compete for long-haul routes such as San Francisco to Chicago or Los Angeles to New York, but for those city pairs 600 miles or less away, it just might be possible.

Here's the link to the ATW Daily article: www.atwonline.com/news/other.html?issueDate=11%2F13%2F2009

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