That situation is not that dissimilar in Europe. Since the privatisation of the railways, they have to be subsidized with tax money. When they were still nationalized, they weren't seen as profit centres at all, they were just part of the infrastructure, and that's exactly what they should be. Now they have to keep shareholders happy, thus they get subsidized with taxpayers' money. And believe me, distances in Europe are long enough to make trains only feasible for vacationers too, and the long distance trains don't carry many passengers. Where the railway really does make sense is suburban and inter city commuting, in essence travels up to 300km long. Anything further away, you are better off taking the plane.