Does he know how Amtraks inventive compensation processes work, or is he just guessing? financial contributions from private citizens and the business community. Trains asked Amtrak to itemize the costs allocated to the Southwest Chief over and above running the train, paying the crew, and paying BNSF on-time performance incentives that cause it to lose almost $55 million. safely and reliably, Anderson said. Incoming CEO William Flynn will succeed Richard Anderson on April 15. Sign-up for email today! Flynn, 66, has been a successful leader across multiple modes of transportation, including rail, maritime and aviation. The biggest is a long-overdue acquisition of new cars and locomotives. Also, President Trump on March 2 re-nominated two of his proposed candidates for the Amtrak Board of Directors - Joseph Gruters and Lynn Westmoreland. MARK Good post. You could learn something about the practices implied by the titles. Anderson, who for three years has voluntarily worked without Sign-up for email today! and How Do Long Distance Trains Perform Financially? (Assuming they can get past the partisan debates and arguments about how many trillions of $$$ to spend on Corona Virus bailouts). government restrictions are put in place, Anderson said. Amtrak names new CEO to head money-losing passenger railroad Wolfs mandatory shutdown order for all businesses that arent life-sustaining,, New Yorks Metropolitan Transportation Authority, California residents do not sell my data request. WASHINGTON (Reuters) - Amtrak said Monday it had tapped Atlas Airs chief executive to run the money-losing U.S. passenger railroad that has seen record traffic. So whatever amount the company decides to spend, the Chief and other routes are charged a portion based on performance tracking formulas, not whether the resources were deployed to actually benefit the services. Wilner is a past president of the Association of Transportation Law Professionals. I dont see this country return to normal in our lifetimes, let alone, CURTIS, as you advocate, doing some good. Section 209 of 2008s Passenger Rail Investment and Improvement Act required operating authorities of short-distance trains to pick up a greater percentage of operating costs as determined by Amtrak. They include: Reducing planned $2 billion in capital spending by $1 billion to focus only on state-of-good repair capital projects. But we are taking this action to help protect everyone. Check out the documents. reservations for Acela are down 99%, Too bad he didn't have a "Save Amtrak, Fire Anderson" baseball cap with him. Most of them dont even seem to understand fundamental accounting principles. Anderson was named Aviation Week's Person of the Year for 2015. WASHINGTON Although incoming Amtrak CEO Richard Anderson made a name for himself in the airline industry, he comes from a railroad family. The 401K retirement program match is also immediately discontinued. I will give an example. Richard Anderson. and informing the pubic and private sector on the benefits of freight Salary & Benefits | Join the State Police The National Railroad Passenger Corporation (Amtrak) has submitted its own request to Congress for $2.34 billion in federal appropriations in fiscal year 2021, a 17 percent increase over their FY 2020 enacted appropriations and 57 percent ($854 million) above the amount the Trump Administration requested on behalf of the railroad. NJ Transit and New Yorks Metropolitan Transportation Authority are seeking bailout funds. As for Amtraks current travails, Anderson said the railroad is in line for a $500 million congressional grant in the first of expected stimulus measures intended as a financial bandage through June. Laura Mason. In theory, choosing an independent entity like Volpe to devise an accounting system would help management keep the company solvent. Mr. Anderson, a former chief executive of Delta Air Lines, has been Amtraks chief executive since 2017, a memorably difficult year at Penn Station. A spokeswoman for Atlas said that Mr. Flynn would remain the companys chairman. 9/11 and subsequent bankruptcy, emerged even stronger. Amtrak flirted with bankruptcy earlier in the 2000s. If we end Amtrak, we end all trains. nationwide filed that week for unemployment benefits, Anderson held a dial-in The long-distance network as it stands today is intact, but we are going to pull 40% of available seat miles from the consists, Anderson said, adding, If we get to a point with Congress where we dont get $500 million (the company has asked for), we have contingency plans underway to further reduce the network to match capacity to demand.. So, CURTIS, you can forget about your sensible position. Click the start your search button . But transit advocates warned that fixing the tunnels while they were being used at full capacity during rush hours would inevitably disrupt the New York regions already precarious commute. Former Delta CEO Out As Head Of Amtrak - View from the Wing A centrally located station to be shared with commuter service Tri-Rail at Miami International Airport has languished without Amtrak trains since it opened in 2015. Amtrak CEO Wants To Be A Good 'Steward' Of The Country's Rail - WBUR As an example, he cited Baltimores B&P Tunnel [see The Overshadowed Tunnel, February 2020 Trains]. Amtrak Contact 202 906.3860 About Amtrak Amtrak offers a more comfortable and convenient travel experience with free Wi-Fi on most trains, plenty of leg room and no middle seat. When Anderson joined, it experienced two crashes in a brief span, and it didn't earn enough revenue to cover its costs. The American people seem to be content to just listen to the conversation, blindly accept the consequences of inaction, and then wonder why somebody didnt do something about the situation before it was too late. The key is whether the mistakes materially affect the companys financial statements and cost allocation outcomes. Together, we will get through this," General Manager Leslie Richards told employees in a letter sent Friday. Is he part of the process, or is he an accounts payable clerk just trading on rumors? Security a critical infrastructure asset. Some trains must run now, more in How much more can be affordedor unafforded, for that matterbefore inflicting even more long-term economic harm on the nation is unknown, as so unprecedented and uncharted is this crisis of which Amtrak is but a miniscule part. Whats a billion or two for Amtrak in a bill that will will total two trillion? Reporting by David Shepardson; Editing by Nick Zieminski. Miami station expense included a portion for snow removal. Judging from the ridership figures above the Acela should be the first to go.. down 99% poor performer even before the outbreak. All quotes delayed a minimum of 15 minutes. Amtrak CEO Richard Anderson is intent on reshaping the state-owned passenger railway into an economically-efficient inter-city operator. Anderson is a liar and a stooge for Trump ! Senator Chuck Schumer, a Democrat from New York who has pressed for federal funding for Amtrak and Gateway,. Its been a well known fact for many years that Amtraks funny money accounting system would not stand up to GAAP rules. Both white papers can be found at Amtrak.com, About Amtrak, Amtrak Facts, Stakeholder FAQs. And given the amount of cash burn we have, Im certain the long-distance network is going to be very different longer term. He has been Assistant Vice President Policy at the Association of American Railroads; a White House appointed chief of staff at the Surface Transportation Board; and Director of Public Relations for the United Transportation Union. Mr. Flynn is the chairman and former chief executive of Atlas Air Worldwide Holdings, which operates cargo airlines and other airfreight businesses. Amtrak has made service changes due to significantly reduced demand in key markets, according to its website. and interest to be paid on existing loans. Get updates and special offers via email from Trains.com brands! Thats when David Kutrosky, managing director of Californias Capitol Corridor Joint Powers Authority, discovered Amtrak was using a formula to allocate the cost of diesel fuel for his trains locomotives rather than measuring it directly. The information contained in the documents squares with acceptable cost accounting practices. Performance Trackings inherent biases make the investment case hard to prove, with revenue and customer-usefulness benefits buried beneath massive overhead charges that would flow elsewhere as services are discontinued. As Trains was preparing this report, the Rail Passengers Association issued a white paper titled, Amtraks Route Accounting: Fatally Flawed, Misleading, and Wrong. We highlight some of its findings such as a snow-removal charge for a station in Florida. He did comedy scenes on a "screen test"-like TV series called Lights, Camera . Anderson, the former CEO of Delta Air Lines Inc., became co-CEO . darken skies in the Book of Exodus. Yes, Amtrak families will feel financial pain, beginning through a lot of tough times with Amtrakfrom host railroads that want to put Now for the answer from the folks in DeeCee: Fix Amtraks problems with more money. Or is all their pro-Amtrak talk just that? Mike, I dont like it when people slam my post, even so Im going to slam yours. He was accused of engaging in sexual acts with a minor between Jan. 1, 2020, and Dec. 31, 2020, a felony . In truth, I dont think anyone even wants to. the end point of the coronavirus is.. It aint gonna happen. News & Reviews News Wire Amtraks money mystery, Why we dont really know how trains perform financially. Richard Anderson appeared in high school plays, served a hitch in the Army and, upon his discharge, began doing summer stock, radio work, a movie bit part (a wounded soldier in Twelve O'Clock High (1949)) and all the other minor jobs required of your basic struggling actor. Amtrak Mission, Vision & Values Amtrak Mission & Values Amtrak Mission: Delivering intercity transportation with superior safety, customer service and financial excellence. In response to an emailed employee question later in the session, Anderson said: There are pieces of the network that ought to be permanently trimmed; you know, Ive said that for a very long time. Bookings are down 99% on one route, almost as high on other routes, more states each day are on lockdown, virtually no one is riding the trains, and your post is the best you can come up with? Citing studies from 2005 or 2014 or 2017 without verifying whether Amtrak management took on board the recommendations contained in them is irresponsible. Frankly, I dont think he has the will and courage to break down Amtraks wall of silence and obfuscation. He did not have access to Amtraks books. . I have the overwhelming feeling that Gardner is the source/author of all of this. In his early career, he served as a prosecutor and corporate attorney, before moving into executive positions. but it is very bad form for an exiting ceo to make statements for example about future employment, positive or negative which could be reversed the very first day by the new chief executive. Speculation is that the co-signing with Related is an attempt to reverse Trump Administration opposition to Gateway. network, the loss gets that much bigger.. Moorman was referring to the Amtrak Performance Tracking methodology. Protect the workers and press on with needed projects. Hopefully Amtrak and/or Congress will see the wisdom of preserving at least a modicum of service on all routes so that when things improve, it will be a lot easier to ramp up service. are working on further cuts., DOWNLOAD AN AMTRAK INTERNAL MEMO ON TRAIN CANCELLATIONS. Amtrak, which has lost vast sums of money for decades, is expected to turn an operating profit this year. Senator Chuck Schumer, a Democrat from New York who has pressed for federal funding for Amtrak and Gateway, applauded the choice of Mr. Flynn. He hinted that Amtrak would soon announce that all Acelas would be temporarily discontinued a move the passenger railroad made on Monday. , for 13 years, has also held senior roles with CSX Transportation, Sea-Land Services, Inc, and GeoLogistics Corp. Its a miracle that ANY trains run. As less people travel due to the coronavirus, Amtrak has "taken aggressive measures to cut costs to minimize employee and service impacts. One of his best-known roles was his portrayal of Oscar Goldman, the boss of Steve Austin and Jaime Sommers (Lindsay Wagner) in both The Six Million Dollar Man and The Bionic Woman television series between 1974 and 1978 and their subsequent . Employee salary and payroll records for 1,364 fire departments and other fire protection employers. long-distance capacity to be reduced. Whether maintenance is an operating expense or a capital item depends on the nature of the expenditures. Executive Vice President and General Counsel & Corporate Secretary. Not mentioned was Amtraks reported February co-signing of a $1 billion Railroad Rehabilitation and Improvement Financing (RRIF) loan application tied to proposed new Hudson River tunnels as part of the Gateway Program, and on behalf of real estate developer Related Companies. Former Amtrak CEO Moorman and current CEO Anderson both publicly stated, and Amtrak documents confirm, that they came out of retirement to work without a salary. We appreciate your support as we work our way through this crisis together., Amtrak confirmed that it has taken aggressive measures.". doesnt always want to properly fund us, and to states and private companies Transit Briefs: BART, DART, LACMTA, NYMTA, SEPTA, USDOT: An Additional $24MM for RIA Program Projects, Transit Briefs: NYMTA, MARTA, Amtrak, Keolis, RTD, An Inside Look at the People Who Make GO Trains Look Good, Young Professionals Conference: Fast Tracking Your Career, FRA Safety Advisory: Train Length a Critical Factor, CARB Passes New In-Use Locomotive Regulation, CN, UP, GMXT Launching Falcon Premium (Updated April 26 with UP STB Service Metrics), Class I Briefs: BNSF, CN, CPKC, CSX, CPKC/NS/UP. He drafted the railroad section of the Heritage Foundations Mandate for Leadership (Volumes I and II), which were policy blueprints for the two Reagan Administrations; and was a guest columnist for the Cato Institutes Regulation magazine. Get great snapshots of railroading history in Art Petersons newest book. "Please stay safe and know that your health and well-being and that of our customers is always my priority.. Anderson's parents both died of cancer while he was . Amtrak Could Turn A Profit In 2020 For The 1st Time Ever Amtrak Executive Salaries | Comparably On a Friday, March 20, when hundreds of thousands of workers Salaries do not include: Longevity compensation; hazardous duty compensation; expanded duty pay or additional location compensation for New York City and the following counties: Dutchess . off 10,000 or 15,000 people, that would be far more demoralizing. In the end, a company is only as good as its people. also, would work without pay so long as other Amtrak employees endure some But that will be only a worst-case scenario because we dont want to furlough employees.. The one thing the US cannot do is default on its debt, that standard is one of the reasons our country as been a safe place for investors world wide to be in. Why the GAO doesnt force them to turn their numbers over to an independent auditor I dont know, unless of course that would reveal some back door shenanigans with money and Congressman. Individual salaries will vary depending on the job, department, and location, as well as the employee's level of education, certifications, and additional skills. it is interesting to note that an outgoing executive officer with less than a month of time left in his currentposition is stating policies which could affect the organization for a year or more in the future. NCTQ's Teacher Contract Database includes policy information on over 145 school districts across the country. Don't miss this look at the history of America's most influential builder of locomotives. Libraries. The problem is, and the reason Gardner has gotten away with this for so long, Amtrak is so small, after 50 years no less!! In 2017, Amtrak sharply curtailed the amount of information publicly disclosed in its Monthly Performance Report (from 66 pages in August to 7 pages in September). While Flynn has rail and maritime executive experienceCSX and Sealand Serviceshis under-fire management DNA is not dissimilar to Andersons, having stabilized and strengthened Atlas Air Worldwide Holdings after leading it out of bankruptcy during his 13 years at the helm. In business 101, one learns that no business can cut its way to profitability. . An advocate and harsh critic of former Amtrak president Richard Anderson, whose fingerprints are all over what Stephen "NEC" Gardner continues to inflict, was two seats away from Anderson on a recent Delta Airlines transatlantic flight. Amtrak and our state partners estimate we need approximately $1billion in supplemental funding through the remainder of the year to make up for the unprecedented loss of ridership and revenue and to minimize employee and service impacts, an Amtrak spokesperson said in a statement. In response, the company offered no numbers, only this statement: National assets are the nations core rail assets shared among Amtrak services, including systems for reservations, security, training, training centers, and other assets associated with Amtraks national transportation system. Misplaced priorities also affect growth of Amtraks existing business. View Library Salaries List. Richard Anderson, president and chief executive, says this marks . It is unprecedented in the railroad industry. Todays announcement of Bill Flynn as Amtraks next C.E.O. In November, Amtrak said it had set records for ridership, revenue and financial performance for the year ended Sept. 30, 2019, including 32.5 million customer trips, a year-over-year increase of. Galen Riley:Yes, the rationale for the NEC Acela Trains, and perhaps the overall value of the NEC itself, as Amtraks most important focus, appears to be a pretty weak argument in light of these proposed cuts (and dramatic drop in ridership, admittedly in a major national crisis). TRA is a 501(c)3 not for profit. The goal is to keep as many people employed as possible, Anderson said. Mr. Anderson said he believed that Amtrak is now seen by its customers and elected officials as a trusted agency that invests wisely and operates at a high level of customer service.. But several years ago, the company began paying bonuses to managers who meet financial goals, largely based on trimming expenses. Gardner should be doing 10 years in the slammer for violating the public trust. Amtrak CEO Richard Anderson speaks to attendees at the National Association of Railway Passengers during a conference in Chicago, Thursday, Nov. 2, 2017. transportation system recovered fairly quickly, Anderson said, in contrast to Other questionable allocations or indefensible errors noted in the Passenger Association report include: The Miami error was caught by the station manager there and revealed in the Government Accountability Offices 2016 report, and state operating authorities continue to comb invoices for questionable allocations. Both Amtrak and the airlines are on the verge of a possible total shutdown and the only question is what routes will be re-established. Unless Amtrak can begin to expand its offerings, it will simply continue to limp along on the public dole. Wed like to avoid it, but if we cant get the kind of funding out of Congress that we need, then we need to face that issue and will have a contingency plan to do that. Few railroad passenger vehicles have had as long a lifespan as the Budd Rail Diesel Car. Between February and July 2016, he sold $15.9 million worth of Delta stock. WASHINGTON At a weekly town hall telephone meeting with employees on Friday afternoon, Amtrak President and CEO Richard Anderson painted a grim picture of the ways in which the Covid-19 coronavirus crisis has impacted demand. Two things we need to go away Anderson & the virus. But exactly what expenses comprise that hefty long-distance tab remain a mystery. A "Sully" Moment For Amtrak's Anderson - Railway Age Amtrak will spend the funds required to keep the existing 1873-vintage tunnels functional, but put engineering for their replacements on hold. Amtrak CEO tells employees of ridership drops, pay cuts, other plans NEWSWIRE, Amtrak CEO tells employees of ridership drops, pay cuts, other plans In addition to a suspension of the 401K match, reduction to management pay, and its incoming CEOs deferring his salary, Amtrak is ending all non-safety-critical hiring; cutting discretionary travel, professional fees, and advertising spending; and deferring non-priority capital expenses," according to the companys statement. Flynn, who has been with Atlas Air Worldwide Holdings AAWW.O, for 13 years, has also held senior roles with CSX Transportation, Sea-Land Services, Inc, and GeoLogistics Corp. Amtrak said Monday it is on pace this year to achieve operational break-even for the first time in the companys 49-year history eve as it invests billions in new high-speed Acela trains and other capital assets. BNSF reopens track at site of Wisconsin derailment (updated), Unifor ratifies contract with Canadian National, Driver of truck in accident that killed NS conductor pleads not guilty, Two Metra lines disrupted as Amtrak locomotive derails at Chicago Union Station. Like every major accounting system, mistakes are made, like assigning snow shoveling expenses to Miami. Why Sign In? It only functions as long as its government masters direct it and it must operate as they desire. Amtrak treats these as a capital expenditure rather than showing them as part of operating expenses. He retired as Delta's CEO effective May 2, 2016, and was executive chairman of the Delta Air Lines board of directors for an additional five months. and long-distance bookings are down 64%. However, when Anderson stated that over two and a half years it takes about $2 billion to keep the long-distance network operating, he again used the largely allocated expense figures the company assigns to imply that these are avoidable costs that is, they would all disappear if the trains were discontinued. Implementing a voluntary time off program for non-union employees, or reducing weekly hours to 32 hours per week and asking for voluntary retirements. Rethinking Amtrak - International Railway Journal Don't miss this look at the history of America's most influential builder of locomotives. Hold on tight and get ready to write your Congressional representatives. As America increasingly is sheltering in place, losing unprecedented numbers of jobs and retirement savings, fearful of COVID-19, and facing a stress level unfamiliar except to those who have endured war zones, Amtrak and its workforce face only unpleasant choices if the railroad and their jobs are to survive.