"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. Rather than cut capital spending, increase it. But he also has experience in the railroad industry, having been a senior executive at CSX Corporation, a rail-freight company that owns some of the tracks Amtrak runs on. , for 13 years, has also held senior roles with CSX Transportation, Sea-Land Services, Inc, and GeoLogistics Corp. repair. The problem is, and the reason Gardner has gotten away with this for so long, Amtrak is so small, after 50 years no less!! Anderson remained co-CEO with Moorman until the end of 2017, at which time he assumed the role of sole CEO. It is calculated by type of asset, such as a Viewliner or locomotive, and the amount shows up as an expense charged against the route to which it is assigned. Put a sock in it! Few railroad passenger vehicles have had as long a lifespan as the Budd Rail Diesel Car. But I guess thats the government way. The Long Island Rail Road and New Jersey Transit carry the bulk of daily users of Penn Station, which New Yorks governor, Andrew M. Cuomo, wants to expand by annexing a block of Midtown Manhattan. ", due to significantly reduced demand in key markets, Gov. Amtrak, which has lost vast sums of money for decades, is expected to report its first operating profit this year. $59,612 - Starting salary (during Academy training and first year) $84,331 - After one year. Last month, the White House proposed cutting U.S. funding for Amtrak by more than 50% over 2020 levels. The pay cuts take effect for the first pay period in April, reflected in the employees April 17th paychecks. Gardner should be doing 10 years in the slammer for violating the public trust. Is he part of the process, or is he an accounts payable clerk just trading on rumors? Charges ranged from $400,000 to $900,000 for moving different long-distance trains from New Yorks Penn Station to Sunnyside Yard in Queens. Richard Anderson CEO / President - - The average Amtrak executive compensation is $230,927 a year.The median estimated compensation for executives at Amtrak including base salary and bonus is $232,242, or $111 per hour. Amtrak Vision Statement Top Salaries. Both white papers can be found at Amtrak.com, About Amtrak, Amtrak Facts, Stakeholder FAQs. Flynn succeeds Richard Anderson, who joined Amtrak as CEO in July 2017. 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. Richard E. Anderson, 72, was charged with two counts of first-degree sexual assault. 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. If Mayor Pete ignores this report, fails to take action, then any pro-passenger rail statements he makes from here on out are hollow. Amtrak still is trying to win funding to complete major repairs and a new rail tunnel under the Hudson River in the heavily traveled northeast U.S. corridor. When the good times again rollbefore COVID-19 Amtrak was reporting record revenue and ridershipthe objective is that Amtraks almost 20,000 employees will rejoice that jobs and healthcare benefits were preserved. 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. 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. 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? through a lot of tough times with Amtrakfrom host railroads that want to put 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. . So, its a standoff between Congress and Amtrak and the railroad continues to limp along without any vision of what it could be if anybody really cared. stood here and didnt do anything, and one day in July or August we told A total of $3 million in electric-traction maintenance costs were assigned to non-Northeast Corridor routes. [12] In 2013, he was the recipient of the Tony Jannus Award for distinguished achievement in commercial air transportation. It took him two months in office to start blabbering what President Kamala Harris told him to blabber. Related CEO Stephen Ross is a major Trump donor, and along with Trump son-in-law Jared Kushner, according to Vanity Fair magazine, is a significant user of a controversial federal program (EB-5) granting foreign nationals permanent visas in exchange for substantial equity investments at low interest rates. He was succeeded by former Chairman and CEO of The Home Depot, Francis Blake. Few railroad passenger vehicles have had as long a lifespan as the Budd Rail Diesel Car. makes me hopeful for the companys future.. Its Northeast Corridor service is running about 40% of normal weekday schedules, including Northeast Regional and Acela services. 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. The 401K retirement program match is also immediately discontinued. 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.. Bob has written about all this before, many times. Mr. Anderson has increased ridership and revenue while doing some airline-style cost-cutting, such as reducing food service on trains and implementing penalties for ticket changes. Don't miss this look at the history of America's most influential builder of locomotives. The measures have been taken to protect the companys future and to avoid involuntary furloughs, Gardner wrote. This, of course, aids the claim that those trains are profitable above the rail.. designing a new tunnel a decade away. Amtrak CEO tells employees of ridership drops, pay cuts, other plans NEWSWIRE, Amtrak CEO tells employees of ridership drops, pay cuts, other plans anyone riding those trains. View Library Salaries List. I dont see this country return to normal in our lifetimes, let alone, CURTIS, as you advocate, doing some good. MARK Good post. level of paycheck reduction. Accountability is a something that no longer exists. !, that it flies below the radar. irresponsible., We cant force our customers to get on our trains, Anderson said. discussed, but ridership numbers are telling. 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. In theory, choosing an independent entity like Volpe to devise an accounting system would help management keep the company solvent. The quest to stem the sources of red ink has been blessed by Amtraks board of directors and orchestrated by CEO Richard Anderson and Executive Vice President and Chief Commercial Officer Stephen Gardner. It sounds like Amtrak management might be using the coronavirus as a tactic to get rid of some routes when that decision should be made on a more rational basis. future paychecks, no healthcare benefits and no jobs. In his early career, he served as a prosecutor and corporate attorney, before moving into executive positions. dont have a job anymore, and thats what we are working to avoid. Fare-paying passengers have vanishedalmost entirely on Northeast Corridor Acela trains; significantly on all others. The Rail Passenger Association Report was performed by an MBA in marketing. Anyone can read what you share. 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. Furthermore, Amtraks new boses have adopted an active growth strategy, and congress is cristal clear that they want the LD trains to continue, and the message has gotten through. 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. Amtrak generates revenues from private cars by charging operators to haul the cars either behind regularly scheduled trains or on their own special moves. Until the past few weeks, there was a consensus that the federals would refrain from bailing out under-funded state and local pension funds. NEWSWIRE. When he took on the role of CEO, Anderson signed a three-year contract. [1], Anderson entered the aviation industry after accepting a legal position at Continental Airlines and served as the airline's representative during the investigation of Continental Airlines Flight 1713 in 1987. So are these new corridors Amtrak is touting the new food source for the NEC beast? Amtrak, which has lost vast sums of money for decades, is expected to turn an operating profit this year. As published in the Atlanta Business Chronicle on Sept. 15, 2017 Make no mistake about it. Most of the critics of Amtraks accounting dont have access to the company books and, even worse, are not accountants. Those familiar with Amtraks past reluctance and dithering to run special trips would know that many Amtrak employees dont want to be bothered with extra work. Amtrak has to balance meeting passenger needs with a $40 billion backlog on necessary repair investments, Anderson says. Anderson will remain a senior adviser through the end of the year. Libraries. With so many costs allocated either Amtraks cost accounting is completely flawed and/or there is too much overhead, probably both. WASHINGTON Although incoming Amtrak CEO Richard Anderson made a name for himself in the airline industry, he comes from a railroad family. While Anderson said the long-distance network is intact, The report would be rejected by independent, objective auditors from one of the big accounting firms. There is no point in operating empty trains. 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. Richard Anderson is now a railroad guy. Mr. Flynn is the chairman and former chief executive of Atlas Air Worldwide Holdings, which operates cargo airlines and other airfreight businesses. 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 . We But there will be no pink slips for Built in the early years of the 20th century, the tunnels had already exceeded their expected life span when Hurricane Sandy flooded them with salt water in 2012. Airlines are turning toward the federal government seeking a steep bailout, while plummeting ridership and service reductions for public transportation are likely to be a lasting pain point for agencies across the country. Together, we will get through this," General Manager Leslie Richards told employees in a letter sent Friday. Now with the outbreak, Anderson said, full year revenues are projected to be down $1 billion and the company projects a $840 million loss even with expense reductions of $110-$150 million. mirror the 64% reduction in ridership that is expected to decline further. safely and reliably, Anderson said. Thats reality, and we best face reality and make the very best we can, be calm about it, do what we have to do, and position Amtrak to come back strong when we are on the other side of the pandemic.. Also, President Trump on March 2 re-nominated two of his proposed candidates for the Amtrak Board of Directors - Joseph Gruters and Lynn Westmoreland. Richard Anderson. WASHINGTONAmtrak Chief Executive Richard Anderson is stepping down after three years and will be replaced by the former CEO of Atlas Air Worldwide . We have reduced And given the amount of cash burn we have, Im certain the long-distance network is going to be very different longer term. A comparison of the relative ridership drops (NEC vs. LD Amtrak trains) doesnt make strong case for the NEC business focus of Amtrak. Such bonuses may reach to the top of management. Connection revenue is not tracked, so if one train is discontinued, the company cant determine the resulting negative monetary impact on other services. 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. network operating, and if we dont have the subsidy from the Northeast Corridor Hirst and Anderson left Continental for Northwest Airlines in 1990, with the latter serving as a deputy general counsel for the airline. Call it his Sully moment, after US Airways pilot Chesley Sullenberger, whose 2009 Miracle on the Hudson saved 155 souls on board his crippled A320 aircraft. Get the newest photos, videos, stories, and more from Trains.com brands. Mr. Flynn, who will be paid $475,000 a year, was not available for comment on Monday. There are pieces of the network that ought to be permanently trimmed; . 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. Trains asked to see the bonus criteria as part of its request, but Amtrak had not responded by press time. This fails to take into account potential revenue lost from such cuts, and reduces passenger options. Employee salary and payroll records for 679 libraries. Without Amtraks survival, there are no Flynn, 66, has been a successful leader across multiple modes of transportation, including rail, maritime and aviation. . Individual salaries will vary depending on the job, department, and location, as well as the employee's level of education, certifications, and additional skills. [5][6] In 2010, during his tenure at Delta, Anderson led an anti-union campaign against the Association of Flight Attendants, calling the labor union "un-Christian" and "immoral. Anyone interested in learning how Amtrak calculates route performance, as well as the financial performance of long-distance trains, can find information in How Does Amtrak Calculate Route Financial Performance? With record ridership and revenues, but critical infrastructure in dire need of billions in investment, Amtrak is at a crossroads, Mr. Schumer said. Controlling costs is important to every organization, and Amtrak has periodically reshuffled personnel and organization charts to make the company more efficient since its inception in 1971. He also said, If we arent driving alignment to our strategy, improving efficiency, reducing waste, fostering innovation, and tapping into our employees discretionary effort, then there is no need for the [Human Capital] function., An employee who requests anonymity tells Trains, If you meet the goals that the board gives you, in management you get a bonus based on the percentage your department makes in achieving the goal. The result, the person says, is that managers are working for their bonuses, with marching orders to cut, cut, cut.. to lead an enterprise in severe peril, Andersons background is prototypical. If I had run my business that way, Id be in jail. So, the train lost more than $54 million? Really? Yet rather than follow the business school playbook of lopping jobs as if workers are disposable office supplies, Amtrak President Richard H. Anderson is ministering to his workforce, treating workers as family by making an extraordinary effort to protect their income stream and healthcare benefits. . Wilner earned undergraduate and graduate degrees in economics and labor relations from Virginia Tech. All redcap labor and baggage handling costs are allocated to long-distance trains, according to trip length, even though wheelchair service and baggage handling are provided to all trains, especially at New York and Chicago. darken skies in the Book of Exodus. Amtrak is a proud National Society of Black Engineers (NSBE) Conference sponsor! Keystone Service, running between Harrisburg and New York, as well as its Pennsylvanian trains between New York and Pittsburgh have been cancelled. He was accused of engaging in sexual acts with a minor between Jan. 1, 2020, and Dec. 31, 2020, a felony . Senator Chuck Schumer, a Democrat from New York who has pressed for federal funding for Amtrak and Gateway,. The family followed railroad work from Galveston to Dallas and Amarillo. We have a strong foundation to build upon because you built it. But there will be no more spending on The company estimates those expenses at more than $1 billion for all long-distance trains, and $793.6 million for Northeast Corridor Acela Express and Regional trains running over multitrack, electrified infrastructure maintained to 125-to-160-mph standards. How it accounts for revenue and expense is just a big game played on a giant game board. (Antonio Perez / Chicago Tribune) In the end, a company is only as good as its people. I actually respect Mayor Pete. of future federal or state bridge loans or grants, and no timeline on the end WASHINGTON, June 26, 2017 /PRNewswire-USNewswire/ -- Amtrak announced that it has named Richard Anderson, a 25-year veteran of the aviation industry, as its next president and chief executive officer. The companys management employees now face temporary salary reductions including a 100% reduction for its CEO effective until at least Sept. 30, or the end of its fiscal year, according to an internal memo from Stephen Gardner, senior executive vice president and chief operating and commercial officer. Moorman was referring to the Amtrak Performance Tracking methodology. There must be something he can be charged with. $100,281 - After five years. 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. For example, Amtrak claims that the percentage of costs allocations has decreased from 80 percent to less than 50 percent. and long-distance bookings are down 64%. Not covered by Amtrak Performance Tracking are Northeast Corridor track maintenance costs. [9], In June 2017, Amtrak announced Anderson as the organization's next President and CEO, replacing Charles "Wick" Moorman. Seize the window of opportunity caused by reduced traffic. 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. When the Southwest Chief rumbles across New Mexicos Raton Pass, with sleeping-car passengers paying as much as $1,058 to ride in a roomette, what is the trains revenue-versus-cost effect on Amtraks bottom line?