Tuesday, September 23, 2008

Conde Nast Portfolio.com article "A Run on the Bankers"

Portfolio.com, a Conde Nast site, recently published an article titled "A Run on the Bankers". The article talks about how the financial crisis may really hammer the airline industry. There will be fewer bankers flying now the story surmises which is probably true. "Airlines can charge corporate fliers 10 or even 12 times more than vacationers because business travelers need to get where they are going fast, with no advance notice and no price questioned". Joe Brancatelli, the articles' author, refers to this the Horny Banker Theory.

This publication focuses on the airline industry but there's a note about Acela:
"Bankers and brokers also dominate Amtrak's Acela and the New York-Washington Air Shuttle route."

I don't think the financial sectors' problems will impact Amtrak as dramatically as it will impact the airlines but I do think it will have an effect. Namely I don't see Amtrak breaking the ridership record next year that they'll most likely set this year.


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