Japan's largest railway company, JR East, is facing a staggering JPY 79 billion deficit across 36 regional railway routes. Despite efforts to streamline services and cut costs, the company has been unable to counteract the significant financial losses. The reasons behind the deficit are varied, including depreciation of assets, reduced passenger numbers due to an aging and decreasing population, and competition from other modes of transportation.

Railway services are an integral part of Japan's transportation network, especially in regions outside metropolitan areas. This deficit not only represents financial losses for JR East but could potentially impact the transportation access for those in rural regions. Thus, the deficit has broader implications for Japan's regional development and economy.

Train systems in the US and EU face similar challenges. However, government subsidies often help offset losses and continue providing essential public transportation, particularly to rural areas. Whether or not the Japanese government will intervene in this case is a point of ongoing discussion.