I think that's a good point - - I've heard people claim
The Canadian is effectively the government subsidising wealthy tourists, but in reality it would cost Transport Canada a lot more to subsidise a mandated essential service if there wasn't a bunch of tourists paying top dollar to ride in prestige class. In a way those tourists are helping to subsidise an essential service instead of having taxpayers doing it. Privatising the service would obviously still require a subsidy if essential service was to be offered in areas that aren't profitable for a private operator (e.g. in Northern Ontario in the winter). If Australia is any indication (the
Indian Pacific as Urban Sky mentioned), the subsidy to a private company would eventually prove unpopular and
be dropped, leaving only a trans-continental Rocky Mountaineer type train. Once, about 10 years ago on the Canadian a staff member told me they'd heard of a possibility of VIA somehow partnering with RMR in some way, but this was back in the Steven Harper days and I haven't heard a thing about it since (if it was even true in the first place).