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livincinco

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livincinco last won the day on February 14 2014

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  1. Intesting point, but I'm not sure it would make financial sense for the airline. Operating a railroad and operating an airline would appear to require completely separate resources and skill sets. That would give Texas Central a distinct advantage because they're able to utilize the engineering, construction, and operational capabilities of their partner. It's also a pretty large capital investment to make into an area where they don't have expertise, when they could potentially utilize that capital towards upgrading their fleet instead. It could also potentially trigger some antitrust interest from the government as well as I would expect that they would find entry of a new player onto that route more attractive than expansion by United.
  2. I don't want to belabor this, my point was simply to not assume that Southwest will not work against this just because they have not yet done so. I certainly hope that they won't oppose this, but business is about timing and there is no question that Southwest is very well aware of this and is assessing the impact to their business. It's not always the right strategic move to announce your intentions immediately. Sometimes it's better to wait for the right opportunity.
  3. That's from the attached New York Times article. http://www.nytimes.com/2014/03/07/us/bullet-train-failed-once-but-its-back.html Quote from the article- Texas T.G.V.’s proposal was especially ambitious. The company envisioned using technology used in France to build a 600-mile network connecting Dallas, Houston, Austin and San Antonio in less than a decade. Company executives predicted they could draw more than nine million riders a year by 2014. Some 70 percent of the project’s $6 billion price tag was to be financed through tax-exempt private bonds, more than federal law allowed a company to borrow using that type of financing. The venture hinged on the company’s changing federal law to ease the restrictions.
  4. You are correct. Southwest is the 160th largest with an annual revenue of about $17 billion. JT Central, the backers of Texas Central, have an annual revenue of approx. $14 billion. I agree that Southwest has a lobby, but they don't have the power to get this killed on their own. They can certainly make it more difficult for Texas Central to get into business, but it would be a potentially risky move on their part to do so. Remember that when Southwest opposed Texas TGV, they had to be very open and public with their opposition to the point that they even had to publicly hint that they would relocate their corporate office out of state if the project moved forward. The most important thing to remember though is that Texas TGV actually required a change in Federal Law to allow them to utilize their financing model. What ultimately killed them was the passive act of not changing that law and potentially Southwest's lobby was part of that lack of action. To the best of my knowledge, Texas Central doesn't need any action like that to allow them to proceed.
  5. Can you please expand on how a company that doesn't even make the Fortune 100 would have stopped a completely private venture "in its tracks"?
  6. Agreed, but I have heard that its a very profitable route for them. I'm with you, I'd like to think that they won't contest it, but it is certainly a possibility that they will.
  7. From what I've been reading, it sounds like one of the biggest concerns is potential opposition from Southwest Airlines, who's been successful in getting this killed in the past. Southwest has been neutral on the project in public comments so far, but there is certainly a possibility that they will pull a move at some point in the process. Texas Central seems to have their act together so they might be able to handle that if it happens. As I think I mentioned before, I think that the biggest thing that this project has going for it is that nothing would make state leadership happier than to be able to stick it to California by getting a privately launched high speed line launched before the government funded California line. I think that they will try to smooth the way anyway they can to achieve that. The state has been putting a big effort behind recruiting CA companies for years. Getting this done would give them a huge selling point.
  8. Hopefully, it's securing land purchases before announcing the route. I would expect that they would want to keep the route under wraps and work to purchase the necessary land through shell companies to keep acquisition costs down.
  9. Agreed. However, I think that you'll also agree that METRO's track record in doing so has not been particularly good.
  10. METRO has a horrible track record executing projects. Not sure why people are surprised that this one is poorly executed too.
  11. Fear is always a powerful selling tool. The language has become more polished over the years, but the message is pretty much the same.
  12. The question of whether a quantity of oil reserves exist that can be extracted and whether they should be extracted are two completely separate topics. And aren't both completely separate topics to the status of construction of the Exxon campus?
  13. Comparing luxury hotels from city to city though really isn't an important criteria. High end luxury hotels exist because of market demand in a particular city. If demand doesn't exist in that city, you aren't going to create it by building a luxury hotel.There are arguable exceptions to that, such as Dubai and Las Vegas, but those are entire cities that were built to appeal to certain demographic, not individual projects.
  14. Current "guilty" pleasure is London Grammar https://m.youtube.com/watch?v=6drfp_3823I
  15. Good to know that we can add the zoo to the long list of things that you hate about Houston.
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