Florida’s high-speed rail system is ‘close’ to filing chapter 11 bankruptcy, report claims. See link below ⬇️
📸 Palm Beach Post files:
Florida’s high-speed rail system is ‘close’ to filing…
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Brightline’s unprofitability stems not from a lack of passengers, but from an unsustainable $5.5 billion debt load accumulated to build its rail network, which creates interest payments that far exceed what ticket revenue can cover even as train operations themselves generate positive operational cash flow. If a new buyer or senior bondholders (such as bond insurer Assured Guaranty or creditor groups) take control of the operating asset through court proceedings, they can wipe out or convert those legacy construction debts into equity; this leaves a restructured entity that becomes instantly net profitable because the massive capital cost of building the rail line has already been absorbed and paid for. I think that would be the best solution to continue "Brightline" under new ownership.
Hilarious! They used all the profits from the Florida train to try and build one from Vegas to SoCal, it failed here miserably, never close to completion, and now they're trying to attain Federal funds to finish!
Please stop calling this high-speed rail. It’s nowhere close to high speed rail. Most of the time when I’m driving next to it I’m driving faster than the train is going. There’s about maybe 5 to 7 miles that it travels that it goes close to 90 mph. The rest of the time it’s going closer to 60 mph. That is not high speed rail.
From day 1 I always knew that it would have failed. I mean living so close to it and the lack of passengers was obvious. The hair brain idea for the elites, unfortunately there's not enough of them, but plenty of us working folk....
It's too expensive. You gotta find a way to get to the train, then you have to find a way to get to your destination. After all incurred fees and everything you could have rented a car. Especially if you're more than one person taking a family trip. I just don't think there's enough people with a dui conviction to keep this idea going.... Not to mention what it costs every other day some car or person getting hit.
Maybe if they lowered their prices to a reasonable number more people would use it and in a long run they’d make more money right now. The train cost almost as much as flying. How does that make sense and it cost more than renting a car to drive to Orlando
I have been expecting them to go bankrupt since before the 1st spike was driven. I firmly believe that the whole project was planned to get other people to fund double tracking for the freight line.
3 1/2 hours to go from Orlando to Miami same time I made from Costa Rica-my country- to Miami.....well China doit the same equivalent distance Orlando Miami in 15 minutes, with one of its ultra fast levitation trains. USA still living in 1789 while China are in the year 5548
As long as pedestrians can walk on the tracks, cross the tracks even at gates and motorized vehicles are permitted to also cross the tracks high speed trains will never work here due to the sheer number of accidents which limits service reliability
A Brightline employee told me....People are buying a ticket from Miami to Aventura ( cheapest fare) and staying on to Orlando because no one checks tickets once on board. If someone comes to your assigned seat they just move to another seat.
It was never supposed to survive. It was an scheme to get the fec tracks upgraded to handle the additional freight coming into port miami and port everglades after their expansion to handle freight coming through the Panama canal.
One should be going westbound. Straight up I-75 people will ride it to work and home as well. Don't make the tickets di expensive also give county employees discounts boom your company still around.
Brightline is very expensive. Driving costs less and no need to rent a car when you arrive at your destination. It's fine for regular business and tourist riders but for locals it's just a novelty they try on special occasions.
It isn't going anywhere, they just paid too much to lay tracks but tracks are laid now just needs new ownership
A standard Smart class ticket from West Palm Beach to Miami typically costs between $15 and $30 one-way, depending on how far in advance you book and peak travel hours. Premium class tickets generally range from $40 to $70....or I can catch the trial for 5 bucks or drive my self 😂
I’d believe it they took huge losses especially during Covid all the trains had to stay running to prevent all the electronics from failing without any kind of revenue, then they are constantly in accidents even if it’s not their fault it still cost a lot of money plus all the regular maintenance I used to do the ac for them and from what I saw they keep everything tip top shape
When Brightline first opened to the public, prices were reasonable and the service was fantastic in first class for just 50 percent more fees. Now, the fees have tripled and the service is less. Typical big corporation action, which is what is leading them into bankruptcy. Wanna succeed? Keep the rates and service you started with, and increased daily ridership will cover the costs. Do I really need to explain this to a corporation leadership with more experience than mine?
How?..If they charge so much for the fare..I paid 50 dollars from Boca Ratón to Miami in a regular class...that trip on the Trail Rail is 12 dollars.
Love taking the Brightline, super smooth, quiet and clean and always on time !!! Much better than driving 4:30 hours from miami to orlando
I have taken it before to Orlando… I liked it very much. Very Clean and not smelly like the rest of the trains. Hope it is saved
The problem is the tickets are not affordable and there are buses like flixbus that are much cheaper
I pray that you don't fold man just restructure focus on what you need and keep your business going cuz right now you the only train company that can get you from Miami to Orlando and soon to be Tampa that quick
People are still using Tri-rail. I am a South Florida resident for over 20 years. I am finding that many south Floridans are still jumping in the car for convenience, especially if you have a family. Remember, you still have to rent a car on the other side wherever you’re going or take an expensive car service.
Maybe all those settlements from people getting hit by train
If Brightline had any insight they would work with Uber and Lyft to offer discounted rides to and from their station "maybe with the assistance of some sort of government subsidy". This would allow people a quicker and easier way to get to/from their stations. If people could travel the train a lot easier then they would use the train A LOT more for longer routes to and from work and other appointments especially with gas being at $4+ a gallon now. What a blown opportunity for massively increased ridership.
Brightline is not going away they will restructure
Oh no! I love bright line. I took it to Miami a few years ago to watch the Heat in the playoffs. I'm hoping they don't go bankrupt before I can take my Filipino wife to Miami on it. I love brightline!🙏❤️😪
It’s great for business traveling. I take it all the time by myself. But if I were to take my family for fun to Orlando I would drive, as it is much more affordable.
Brightline will restructure its debt incurring to expand and improve its bottom line. The issue is not ridership which has been steadily improving now you see trains full with 10-11 train carts. So ridership is never been the issue.
Does this mean no connecting routes to Tampa, Jacksonville, Tallahassee??
No I’ll donate to it keep it going. It’s Darwin’s gift to Florida
Nothing to do with poor performance or numbers. They’re actually making money. What happened was that the investors who lent them money to build up the brand weren’t happy with the performance numbers and despite Brightline being current on their loan payments, the investors placed margin calls on their loans which Brightline cannot pay in full.
May I ask why there are people laughing at this? Who laughs at a business that employs hundreds of Floridians that pays them and helps them live a decent life? What’s funny about this?
It’s Not failing because if lack of riders It’s because it’s struggling servicing the enormous debt incurred to build the tracks Tgey will restructure and be fine Brightline is not going away It’s been a game changer connecting south Florida cities and now Orlando Enormous economic engine!