A preliminary investigation has been made of the potentialities of a high-speed low-loss transportation which could be competitive with the air-transport system. This system, called the MEL (magnetic-suspension, evacuated-tube, linear-motor-propulsion) system, employs passenger-carrying vehicles vertically supported by permanent magnets and laterally stabilized by an electro-magnetic servosystem, with no physical contact between vehicle and surroundings. Aerodynamic drag is reduced by two orders of magnitude (compared to operation in open atmosphere) by evacuation of the subterranean tube in which the vehicle travels. Expected magnetic drag at 270 m/s (600 mi/h) is small compared to aerodynamic drag. Stable contactless suspension was achieved with a model, but track length limited testing to low speeds. A linear motor is used for propulsion in the proposed system; since the low drag permits extensive coasting, only a small fraction of the track-mounted primary requires energization. Assuming magnetic drag negligible compared to aerodynamic drag at 270 m/s, a 1-percent reduction in coasting velocity would occur in approximately 85 km. The ultimate speed of this system will probably be determined by ground stability, track linearization economics, and suspension stabilization design. The combination of constant temperature, absence of frost heaving and other weather effects, and the existence of a uniform low pressure when the vehicle passes should permit far greater track stability than that obtained with a wheeled high-speed surface train. The MEL-system vehicle is assumed to attain a cruise speed of 270 m/s for calculating the economic potentiality of the system. The required track straightness for this speed is discussed This system should exhibit superiority over the air-transport system in air and sound pollution, conservation of energy resources fare economy, safety and reliability, potential passenger capability probable ultimate speed without sonic boom problems, and several other factors. The air-transport system is superior in capability of serving low-traffic-density areas and overseas routes, flexibility in circumventing equipment failures, and susceptibility to earthquakes. The major expense item for the operator of the MEL system is amortization of construction cost, but anticipated annual revenues for a New York, N. Y.-Los Angeles, Calif. route in the 1980's far exceed this cost.