{"title":"National Railroad Passenger Corporation (\"Amtrak\"): Acela Financing","authors":"R. Bruner, J. Chan","doi":"10.1108/case.darden.2016.000211","DOIUrl":null,"url":null,"abstract":"In the late 1990s, the National Railroad Passenger Corporation (Amtrak) faced a rude awakening as Congress stipulated that it eliminate its reliance on federal subsidies by 2002. In response, Amtrak drew up a plan for self-sufficiency, the centerpiece of which was a new high-speed passenger service that, it was hoped, would boost revenue enough to make Amtrak self-sufficient by 2002. To run this new service, Amtrak needed to purchase $750 million worth of new locomotives and train sets in 1999. Three alternatives were available for funding the purchase: debt financing, lease financing, or reliance on federal sources. The case opens with Amtrak's CFO instructing her staff in April 1999 to review a leveraged-lease proposal that has just been submitted by BNY Capital Funding LLC. The objectives of the case are to introduce students to financial leases as a financing alternative, explore the lease-versus-buy decision and the conditions under which financial lease arrangements make sense, and exercise skills in the valuation of financial leases.","PeriodicalId":163321,"journal":{"name":"TransportRN: Financing of Transportation (Topic)","volume":"141 1","pages":"0"},"PeriodicalIF":0.0000,"publicationDate":"2017-01-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"TransportRN: Financing of Transportation (Topic)","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.1108/case.darden.2016.000211","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"","JCRName":"","Score":null,"Total":0}
引用次数: 0
Abstract
In the late 1990s, the National Railroad Passenger Corporation (Amtrak) faced a rude awakening as Congress stipulated that it eliminate its reliance on federal subsidies by 2002. In response, Amtrak drew up a plan for self-sufficiency, the centerpiece of which was a new high-speed passenger service that, it was hoped, would boost revenue enough to make Amtrak self-sufficient by 2002. To run this new service, Amtrak needed to purchase $750 million worth of new locomotives and train sets in 1999. Three alternatives were available for funding the purchase: debt financing, lease financing, or reliance on federal sources. The case opens with Amtrak's CFO instructing her staff in April 1999 to review a leveraged-lease proposal that has just been submitted by BNY Capital Funding LLC. The objectives of the case are to introduce students to financial leases as a financing alternative, explore the lease-versus-buy decision and the conditions under which financial lease arrangements make sense, and exercise skills in the valuation of financial leases.
上世纪90年代末,美国国家铁路客运公司(Amtrak)猛然醒悟,因为国会规定,到2002年,该公司将不再依赖联邦补贴。作为回应,美铁制定了一个自给自足的计划,其中的核心是一个新的高速客运服务,希望它能增加足够的收入,使美铁在2002年实现自给自足。为了运行这项新服务,美国铁路公司在1999年需要购买价值7.5亿美元的新机车和火车。购买资金有三种选择:债务融资、租赁融资或依赖联邦来源。该案以1999年4月美铁首席财务官指示员工审查纽约银行资本融资有限责任公司(BNY Capital Funding LLC)刚刚提交的一份杠杆租赁提案为开端。该案的目的是向学生介绍融资租赁作为一种融资选择,探讨租赁与购买的决策,以及融资租赁安排合理的条件,并锻炼融资租赁估值的技能。