(Source: Huffington Post, February 6, 2012)
WASHINGTON, D.C. — The measure’s language, however, outlines the limits of what even its proponents think privatization can accomplish. The proposed legislation states the federal government would pay out “any portion of appropriations for Amtrak necessary to cover a net loss” from the food and beverage service. So even if the private providers save Amtrak some money, the federal government would still be required to cover any losses from the private businesses’ operations. Amtrak has argued that food and beverage services operate not as a money-making proposition, but somewhat as a loss-leader, an amenity to lure passengers to spring for train tickets.
Full story: Huffington Post