Would New Service Impact Airline Traffic?

This next item isn't an aviation story, per se... but it could pose significant ramifications for the nation's airline industry, and even to a much lesser-extent general aviation.

On Thursday, President Barack Obama, along with Vice President Joe Biden and Transportation Secretary Ray LaHood, announced a new US push to create high-speed rail lines from city to city, reducing dependence on cars and planes and spurring economic development.  

Obama released a "strategic plan" -- available at the FMI link below -- identifying $8 billion provided in the American Recovery and Reinvestment Act and $1 billion a year for five years requested in the federal budget as a down payment to jump-start "a potential world-class passenger rail system." It also sets the direction of transportation policy for the future.

By late summer, the Federal Railroad Administration will begin awarding the first round of grants. Additional funding for long-term planning and development is expected from legislation authorizing federal surface transportation programs.

Of course, this isn't the first time a national rail system has been touted -- Amtrak, anyone? (No?) -- but it does mark a significantly ramped-up effort by the federal government to essentially force such a system into existence. That should cause concern for the nation's airlines... especially carriers serving high-traffic routes like transcontinental service (California/New York, for one) and, in particular, shuttle service along the Northeastern corridor.

The report issued Thursday "formalizes" 10 potential high-speed rail corridors as potential recipients of federal funding. Those lines are: California, Pacific Northwest, South Central, Gulf Coast, Chicago Hub Network, Florida, Southeast, Keystone, Empire and Northern New England. "Also, opportunities exist for the Northeast Corridor from Washington to Boston to compete for funds to improve the nation’s only existing high-speed rail service," the report adds.

"My high-speed rail proposal will lead to innovations that change the way we travel in America," President Obama said. "We must start developing clean, energy-efficient transportation that will define our regions for centuries to come. A major new high-speed rail line will generate many thousands of construction jobs over several years, as well as permanent jobs for rail employees and increased economic activity in the destinations these trains serve.

"High-speed rail is long-overdue, and this plan lets American travelers know that they are not doomed to a future of long lines at the airports or jammed cars on the highways," he added.

FMI: www.fra.dot.gov/us/content/31, www.amtrak.com