This virus is just too convenient for them to carry out the slash and burn of the national network that some have been trying for 40+ years. We have reduced (Antonio Perez / Chicago Tribune) The New York Times first reported that former Delta Air Lines CEO Richard Anderson will step down as Amtrak CEO in favor of William Flynn, the former CEO of cargo and charter airline Atlas Air. 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? MIKE Really? Mr. Flynn is the chairman and former chief executive of Atlas Air Worldwide Holdings, which operates cargo airlines and other airfreight businesses. How it accounts for revenue and expense is just a big game played on a giant game board. Said Anderson during the town hall call-in, We have been Working without a salary or an annual bonushe probably doesn't need the money, having left Delta with $72 million in company stockAnderson is determined to move Amtrak toward. That needs to change NOW. 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 800,000 passengers. Get great snapshots of railroading history in Art Petersons newest book. Anderson, the former CEO of Delta Air Lines Inc., became co-CEO . through a lot of tough times with Amtrakfrom host railroads that want to put The two men, each of whom took no salary, shared the chief executive title during a transition that lasted several months as Mr. Anderson learned the railroad business. Rather than cut capital spending, increase it. It is quite obvious that you are blinder than a bat when it comes to US passenger rail. everybody that the company was near liquidation and that we were going to lay and passenger rail come from conference registrations, sponsorships and stood here and didnt do anything, and one day in July or August we told . during his three-year tenure at Amtrak, such as reducing food service and But that will be only a worst-case scenario because we dont want to furlough employees.. Few railroad passenger vehicles have had as long a lifespan as the Budd Rail Diesel Car. With our state and commuter partners, we move people, the economy and the nation forward, carrying more than 30 million Amtrak customers for each of the past eight years. There are plenty of others motivated by what Mr. Shigley above describes. Instead of investing in rail infrastructure we will be borrowing at the federal level to pay current and future retirees in the states and localities. future paychecks, no healthcare benefits and no jobs. that would like to take over our services. Nothing has challenged Amtrak as Under current directives, which provide no incentive for revenue gains (because the companys regional marketing positions have been eliminated), what Amtrak manager would advocate for the venue change? Connection revenue is not tracked, so if one train is discontinued, the company cant determine the resulting negative monetary impact on other services. our country needs long distance amtrak trains without them people will never be able to sleep, eat, and see the country by rail. ANDREW Another possible outcome is that the stimulous (money that the government will print if it doesnt first run out of ink) would include a rider to maintain all current routes. Between February and July 2016, he sold $15.9 million worth of Delta stock. Were not getting credit for efficiencies, she told Trains in a September 2014 interview, adding, Weve committed to paying the costs of operating our services. CURTIS You speak good and necessary sense (below) at a time of total national insanity. Amtrak now projects losing $1 billion in revenue through Until the end of last year, Mr. Flynn ran Atlas Air, which is based in Purchase, N.Y., and claims to have the worlds largest fleet of large cargo planes in the world. Protect the workers and press on with needed projects. some 40% of the seat capacity will be pulled from consists, he said, which will Salary. Anderson remained co-CEO with Moorman until the end of 2017, at which time he assumed the role of sole CEO. You ought to be ashamed of yourself. On 9/11, we knew Amtrak also would be on the hook for almost $400 million in construction costs for Relateds Hudson Yard skyscraper project. Northeast Corridor service by 40%, and are contemplating stopping Acela service because we dont have He did not have access to Amtraks books. The relationship between the government and Amtrak is almost a pure definition of Fascism. Whats a billion or two for Amtrak in a bill that will will total two trillion? Since its inception 53 years ago, Amtrak has grown to 20000 employees. All of it! Most of the critics of Amtraks accounting dont have access to the company books and, even worse, are not accountants. [1] Anderson, who had never considered a career in the aviation industry, accepted the position at the urging of Ben Hirst, a neighbor who worked at Continental as a legal counsel.[2]. We irresponsible., We cant force our customers to get on our trains, Anderson said. I have read the documents several times. With so many costs allocated either Amtraks cost accounting is completely flawed and/or there is too much overhead, probably both. Anderson leaves with a much-improved safety record for the railway and a. So, CURTIS, you can forget about your sensible position. Richard Anderson is now a railroad guy. The Rail Passenger Association Report was performed by an MBA in marketing. 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. and state [supported corridor] trains bearing their share of the national Sign-up for email today! Individual salaries will vary depending on the job, department, and location, as well as the employee's level of education, certifications, and additional skills. But there will be no pink slips for $59,612 - Starting salary (during Academy training and first year) $84,331 - After one year. Bruno Maestri. Tuesday afternoon rail news: With William Flynn set to take over Wednesday as Amtrak president and CEO, outgoing CEO Richard Anderson sent a message to employees today thanking employees for their efforts during his tenure and in the face of the ongoing COVID-19 outbreak. Amtraks accounting system and management priorities mitigate against that. I actually respect Mayor Pete. The expense burden has become Amtraks justification for systemwide cost cutting. But I guess thats the government way. Bob has written about all this before, many times. seeking to curtail long-distance routes. Much is dependent on enlightened labor leaders facing harsh reality with learned wisdom, rather than union hall polemics. They include: Reducing planned $2 billion in capital spending by $1 billion to focus only on state-of-good repair capital projects. need to be aggressive in preserving our cash, he said. The Volpe Center, an arm of the U.S. Department of Transportation, was chosen to construct clear assignments of revenues and costs to replace Amtraks previous system. [10] Anderson assumed the title of President on July 12, 2017. Really? This fails to take into account potential revenue lost from such cuts, and reduces passenger options. 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. 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.. Amtrak, Struggling to Keep Trains Running, Chooses a New Leader, https://www.nytimes.com/2020/03/02/nyregion/amtrak-ceo-william-flynn.html. Citing anonymous sources is disingenuous. 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. Calling these actions at preserving cash demoralizing, Amtrak treats these as a capital expenditure rather than showing them as part of operating expenses. Though he is set to shift to an advisory role when his successor, William Flynn, officially takes over as CEO on April 15, Anderson made it clear that policies recently formulated by the existing management team and Amtrak Board Chairman Anthony Coscia would prevail for the foreseeable feature. It would also make a concerted effort to assign costs to the revenue-producing entities that incurred them. Among the challenges Amtraks chief executive has to navigate is that other railroads are the biggest users of Amtraks infrastructure in and around New York. 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. The proposed $11 billion project, known as Gateway, has failed for years to gain the approval of the Trump administration. Don't miss this look at the history of America's most influential builder of locomotives. A comparison of the relative ridership drops (NEC vs. LD Amtrak trains) doesnt make strong case for the NEC business focus of Amtrak. But there will be no more spending on Setting up a real accounting system would require a lot of work that many would rather not do. Too bad he didn't have a "Save Amtrak, Fire Anderson" baseball cap with him. A resounding Amen to Mr. Faheys post. also, would work without pay so long as other Amtrak employees endure some It would hurt the individuals that bought them, but the big losers would be all the foreign governments that bought that debt, theyd fight tooth and nail to get us to keep payingwhich is when you through the ultimatum at them. I am a retired CPA. . 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. The information contained in the documents squares with acceptable cost accounting practices. The average Amtrak salary ranges from approximately $36,152 per year for a Clerk to $393,392 per year for a Senior Director. Boarding or deboarding for individual stations and by trip length, Estimated diesel power and electric traction usage factors. States had already begun to protest some decisions. But several years ago, the company began paying bonuses to managers who meet financial goals, largely based on trimming expenses. 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. 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..
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