Amtrak

Build a for-profit train company on Amtrak's only profitable routes

Shaan explains Wes Edens's Brightline (now Virgin Trains USA) thesis: Amtrak is a money pit that's never turned a profit, but specific corridors like NY-DC are extremely profitable. The play is to cherry-pick only the high-traffic legs (South-to-Central Florida, LA-Vegas in 85 min) and run them for profit.

“Amtrak is actually profitable on certain legs. It's just that they operate all these other legs because they're non-for-profit. They're not profit.. And so, um, it's their other legs that are causing them, uh, to be unprofitable. But if you just look at their, their best routes and like, he's like, you know, look at this one route from New York down to Washington or whatever. It's actually extremely profitable because a lot of people want to go on that corridor. And so he's identified all, so he started this thing called Brightline.”

Steal thisWhen entering a money-losing incumbent's market, isolate only its profitable segments and operate just those.