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Could a Proposed Texas Bullet Train Threaten Airlines?

May 29, 2017
4 min read
Shinkansen
Could a Proposed Texas Bullet Train Threaten Airlines?
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Everyone knows that the US lags far behind most other countries in terms of rail travel offerings, and for many decades, the answer to increased travel demand has been to widen highways or increase flight frequencies. However, a privately funded rail company now aims to grab a piece of the pie when it comes to intra-Texas travel, which could affect the three US airlines that have a huge presence in the state.

Texas Central is planning to build a bullet train route that will cut between Dallas and Houston, trimming about 2 hours off the average driving time, and saving over an hour compared to air travel. The approximately 240-mile high-speed rail line will offer a total travel time of less than 90 minutes, with departures every 30 minutes during peak periods each day and every hour during off-peak periods — with 6 hours reserved each night for system maintenance and inspection. Texas Central plans to deploy Central Japan Railway Company’s (JRC) “N700-I Bullet” high-speed rail system based on the “Shinkansen” system.

An N700 Shinkansen train.

Looking at flights between Dallas (both DAL and DFW) and Houston (both HOU and IAH), American flies nine daily round-trips from DFW to IAH and six to HOU, while United flies nine round-trips each weekday between DFW and IAH. Southwest flies twenty round-trips each weekday between DAL and HOU. The DAL-HOU route has been a bread and butter route for Southwest since the day it started service in 1971.

I reached out to American, Southwest and United to get their opinions on whether the train could hurt business by absorbing some of their commuting customers. American replied, saying it has no position on it.

Southwest's response was typically colorful. Spokesperson Chris Mainz told me Southwest didn't really have any feelings on the matter but that, “Texas already enjoys a very robust ‘high speed’ transportation system and it departs Dallas Love Field 20 times a day for Houston [Hobby Airport (HOU)].” It's also important to note that Southwest is an entirely different airline than when it objected to the first proposal decades ago. Its size has nearly doubled, and it's added dozens of destinations, so if a tiny fraction of its passengers on one route defect to the train, it won't badly hurt the airline. United did not respond to our request for comment.

One can easily see the appeal for business travelers seeking to avoid the hassle of airports and cramped airplane seats with tiny tray tables. Texas Central estimates the need for each train to hold about 400 passengers, which would amount to eight train cars. In comparison, between Tokyo and Osaka, Japan Railway Company operates 16-car trains.

As a native Texan who has lived in both Dallas and Houston for 10-plus years, I've driven and flown between Dallas and Houston dozens of times, and there's really not much for scenery, except during the spring when the wildflowers are blooming. The trip takes almost four hours by car on a good day, but a bad wreck on Interstate 45 can easily add two hours to that.

The company says ticket prices will be competitive with the costs of air and car travel. Plus, the train is guaranteed to give you a smooth, stress-free ride, with the opportunity to get an hour and a half of work done, without having to worry about storing your laptop and tray table at certain times. The train is also much less susceptible to weather issues than when traveling by air or car. It will have Wi-Fi, so you'll be able to work or entertain yourself during the ride.

Proposed Routes of the Texas Central bullet train.

The whole project is being funded by investors, rather than state taxes and subsidies. That alone makes it so much more appealing to Texans. The construction start date will depend on permitting. Federal Railroad Administration is currently wrapping up the Environmental Impact Study. Construction could begin in late 2018 depending on the federal regulations. The overall project cost is estimated to be $12 billion, but is expected to bring a $36 billion economic benefit in its first 25 years of service.

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A ridership study performed by Texas Central found that 71% of those surveyed who had traveled between Dallas and Houston within the past twelve months would "definitely" take the train, and that 90% currently choose to drive because flying saves little to no time. The study also predicted travel within the Dallas-Houston corridor to increase 2% annually between now and 2050.

Would you choose train travel over flying? Let us know in the comments below!

All images courtesy of Texas Central.

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4XEarn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
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  • Intro Offer

    As High As 100,000 points. Find Out Your Offer.
  • Annual Fee

    $325
  • Recommended Credit

    Excellent to Good

Why We Chose It

There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits. (Partner offer)

Pros

  • 4 points per dollar spent on dining at restaurants worldwide and U.S. supermarkets (on the first $50,000 in purchases per calendar year; then 1 point per dollar spent thereafter and $25,000 in purchases per calendar year; then 1 point per dollar spent thereafter, respectively)
  • 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
  • Packed with credits foodies will enjoy
  • Solid welcome bonus

Cons

  • Not as useful for those living outside the U.S.
  • Some may have trouble using Uber and other dining credits
  • You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
  • Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
  • Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
  • Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
  • Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
  • Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
  • $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
  • $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
  • $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
  • $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
  • Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
  • No Foreign Transaction Fees.
  • Annual Fee is $325.
  • Terms Apply.