Posts Tagged ‘Anthony Coscia’

Amtrak Lost $801M in FY2020

November 24, 2020

Amtrak warned yet again on Monday that further service cuts are possible unless Congress increases its federal funding for the passenger carrier in fiscal year 2021.

Funding for Amtrak and other federally-funded programs is currently being provided under a continuing resolution approved by Congress in late September that expires on Dec. 11.

That resolution calls for interim funding in FY2021 to be at the same levels as FY2020, which ended on Sept. 30.

“If the current level of funding is extended in a continuing resolution beyond Dec. 11 . . . and supplemental funding isn’t provided we’re going to be unable to avoid taking fairly difficult actions that could have long-lasting effects on our Northeast Corridor infrastructure and the national rail system,” said Amtrak CEO William Flynn.

Flynn said the carrier needs additional emergency funding for the remainder of the fiscal year.

If Amtrak funding continues at its current levels, Flynn said as many as 1,600 workers operating state-supported trains could be furloughed.

Amtrak Senior Executive Vice President Stephen Gardner said decisions on job and service cuts will be made based on how long the uncertainty remains.

In a news release, Amtrak said during FY2020 its operating revenue, including payments from state-supported routes, decreased 31.9 percent to $2.3 billion when compared with FY 2019.

Ticket revenue was down $1.24 billion or 47.3 percent.

During FY2020 Amtrak posted an unaudited operating loss of $801.1 million, which it attributed largely to lost ridership during the pandemic.

The carrier also reported advancing $1.9 billion in infrastructure and fleet work.

Amtrak Board Chairman Anthony Coscia said the passenger carrier projects that under current trends and future projections, ridership and revenue are expected to be down 63 percent by the end of fiscal 2021.

That would be worse than the 50 percent decline Amtrak management had predicted earlier when it announced its plans to reduce the operating frequency of most long-distance trains to tri-weekly.

Coscia said Amtrak intends to move forward on $2 billion in critical infrastructure work “that includes safety and reliability measures that we believe will permit the company to come through the pandemic with a railroad that was playing and will play in the nation’s economic recovery.”

He said Amtrak has more than $5 billion of additional investments that could contribute to recovery following the pandemic.

Amtrak said it provided 16.8 million customer trips in FY 2020, down 47.4 percent with a year-over-year decline of 15.2 million riders.

In recent months, ridership has dipped by 20 to 25 percent of pre-COVID levels.

Amtrak Looking Toward Post Pandemic World

April 25, 2020

Amtrak management is studying a number of scenarios for ramping service back up once the COVID-19 pandemic has passed.

In the meantime, though, the passenger carrier expects to lose $700 million in adjusted operating earnings as a result of the pandemic.

Amtrak Chairman Anthony Coscia along with new CEO William Flynn and Executive Vice President Stephen Gardner gave those assessments during a conference call with news reporters.

Amtrak ridership across its system has fallen by 95 percent and it has suspended 57 percent of its services.

Amtrak is receiving $1 billion in emergency federal aid and Coscia said that assistance will enable Amtrak to avoid having to tap its capital reserves and avoid employee layoffs.

He said that before the pandemic began Amtrak was “on track” to break even in operating earnings by Fiscal Year 2021 for the first time in the railroad’s history.

That figure counts as revenue funding that Amtrak receives from various state governments to operate corridor service.

Flynn said the carrier has been taking advantage of the lower ridership period to perform track work and other “critical” projects.

In looking to the future, Flynn said Amtrak officials are studying touchless technology at fare gates and changing some food service.

One idea being explored is enabling passengers to pre-order food and beverages from café cars.

Flynn said Amtrak expects it will take three months or more for ridership to return to pre-pandemic levels.

It is not clear when that clock would start. Some governors have been talking in recent days about easing social distancing restrictions on or after May 1, although some forms of social distancing are expected to remain in place either by mandate or recommendation.

Flynn said Amtrak has been researching various ideas of what the pandemic recovery will look like and have created several service plans based on “surveys of customer sentiment.”

In some instances, Flynn indicated, Amtrak will “introduce product ahead of demand.”

“We have to demonstrate to our customers that we have an attractive product that they will value when they come back,” Flynn said.

Gardner said Amtrak is looking at implementing new ticketing kiosks and text messaging to inform passengers where to head once they arrive at their station.

The downloadable schedules that have been removed from the Amtrak website will be reintroduced once services are restored.

Flynn said none of Amtrak’s unions have thus far shown an interest in delaying or giving up negotiated wage increases.

“But we continue to work with union leadership so they understand where we are in this crisis and how we are going to move forward,” he said.

Trains magazine reported that Amtrak spokesman Marc Magliari said 58 percent of onboard service employees are on an extra board that guarantees them 150 hours per month of work.

Regularly assigned employees are guaranteed a 180-hour month, so their pay cut works out to about 16 percent.

“Engineers and conductors have a 40-hour-a-week guarantee, but many of them previously worked assignments that included overtime, which has been reduced,” Magliari said.

Anderson May Be Leaving Amtrak in 2020

January 3, 2020

Buried in a recent Wall Street Journal article about the challenges that Amtrak faces in 2020 was for some a potential bit of good news.

The president and CEO that many rail passenger advocates love to hate, Richard Anderson, may be leaving the company this year.

The article said Anderson’s potential departure is among the challenges Amtrak is facing this year.

Although no details were provided in the Journal article, Anderson is reported to have a three-year contract that expires this year.

Anderson, 64, a former Delta Air Lines CEO, came to Amtrak in June 2017 and for several months served as co-CEO along with the now retired Charles “Wick” Moorman.

Amtrak Chairman Anthony Coscia would not comment to the Journal about Anderson’s potential departure other than to say the passengers carrier “takes succession planning very seriously, and its ability to attract world-class CEOs also brings with it the responsibility to assure there’s continued leadership at that level.”

Whether Anderson continues to lead Amtrak through and past 2020 may not matter if the carrier continues on its current path of emphasizing the pursuit of profitability or at least break-even operation.

Amtrak has touted its fiscal year 2019 operating loss of $29.8 million as the best financial performance in Amtrak’s nearly 50-year history.

Anderson has repeatedly spoke of breaking even in 2020, although it should be noted Amtrak counts its federal funding as revenue.

The Journal article noted that some members of Congress have been critical of Amtrak’s financial strategies, saying the carrier’s overall service has suffered.

Although Anderson doesn’t give many interviews, in those that he has, including with the Journal, he has spoken about shoring up Amtrak finances as a way to gain credibility in Congress so it can ask for and receive millions if not billions of new money for capital projects, including replacement of aging tunnels and other infrastructure in the Northeast Corridor.

Amtrak’s future will be a major topic of conversation in Washington this year because Congress may act on a new multiyear highway bill that is expected to include reauthorization of the federal grant programs that fund Amtrak.

The reauthorization, which would replace the current FAST Act, may contain policy directives that govern Amtrak’s operations.

The FAST Act expires in 2020. It is a five-year surface transportation law that funds road, rail and transit programs.

The Journal article noted that some Capitol Hill observes are skeptical that Congress will be able to agree on a new transportation bill during a presidential election year.

They base that on the reality that raising the gasoline tax will be part of that discussion and many lawmakers are loath to do that.

The federal gasoline tax funds most highway construction and has not increased since 1993.

Anderson and senior vice president Stephen Gardner, who may be Anderson’s replacement if he steps down, have articulated a vision in which Amtrak downgrades long-distance routes in favor of shorter corridor services between major population centers.

Although Anderson has spoken about retaining some long-distance routes as experiential services, he has also indicated that the passenger carrier may seek congressional approval this year to experiment with restructuring at least one long-distance route.

In an interview with the Journal, Amtrak Chairman Coscia sought to frame the changes Amtrak is eyeing as a way to provide better service to underserved regions.

“What we’re after here is the person who lives in Atlanta or Charlotte, who doesn’t have train service,” Mr. Coscia said. “The person who has to wake up at 3 in the morning in Cleveland to take a train.”

Amtrak management has yet to formally release a plan for doing that although Anderson has hinted that in advance of congressional action on a new Amtrak authorization the passenger carrier will release more specific details about its plans.

Amtrak Eyeing Major Revamp of Its Route Network

February 22, 2019

The big news concerning Amtrak this week was a report in the Wall Street Journal that Amtrak plans to revamp its route network to emphasize new corridors, primarily in the South and West.

The Journal quoted an unnamed Amtrak official as saying: “We are undertaking a major rethinking of the national network and how we offer service on the national network. That study and planning isn’t done yet, and we aren’t prepared to announce any plans or recommendations yet—those will come in our reauthorization proposal.”

The newspaper report said the route restructuring is being prompted in part by a need to replace or retire the aging Superliner fleet devoted to most long-distance trains.

Another factor is that Amtrak must be reauthorized by Congress later this year.

Amtrak officials have been hinting for at least a year at a change in the carrier’s business focus.

During a speech in California, Amtrak President Richard Anderson described the long-distance trains as experiential.

Anthony Coscia, the chairman of the Amtrak board of directors, told the Rail Passengers Association in a meeting last May that in the long term the overall shape of Amtrak’s national network is likely due to population shifts, demographic trends and economic growth.

Coscia expressed Amtrak’s desire to develop corridor routes with strong potential for growth in unserved or lightly served areas.

Writing on the Trains magazine website, columnist Fred Frailey said the implication of the report by the Wall Street Journal is that Amtrak wants to operate daylight service between large city pairs.

Frailey quoted at length the remarks of Amtrak’s Stephen Gardner, a senior executive vice president, at the Rail Trends meeting in New York City last November.

“We’re looking at a different America. They do not live half in the city and half in the country,” Gardner said. “Now the vast majority live in major metropolitan areas. And those metro areas are shifting. The Northeast will be a net loser.

“Where growth is happening is in the South, Mountain West and West. And guess who lives in those metro areas? It’s Millennials, by far.”

Gardner went on to say that this has resulted in a mismatch between population density, transportation demand and Amtrak’s current network.

Frailey speculated that what ultimately may occur is that some of Amtrak’s long-distance routes will be split into segments operating during the daytime.

He cited the example of the Chicago-New Orleans route, which might be broken into Chicago-Memphis and New Orleans-Memphis segments.

Amtrak Eyeing Superliner Replacement or Rebuilding

December 10, 2018

Amtrak has given a hint that it is considering a plan for replacement or rebuilding of its Superliner fleet.

In a letter to Rail Passengers Association Jim Mathews, Amtrak Chairman Anthony Coscia said the carrier is evaluating what he termed an “appropriate strategy” for the Superliner fleet, which is primarily assigned to long-distance trains.

Coscia noted that several of Amtrak’s equipment fleets are nearing the end of their useful lives.

“We are eager to grow and expand service to currently underserved cities, corridors and communities across the country,” Coscia wrote. “We are hopeful there will be opportunities for expansion onto new routes in places like Kansas, Minnesota, Wisconsin and Illinois.”

He also indicated that Amtrak’s PRIIA-required Route Improvement Plans are providing an opportunity to examine options for daily service for the Cardinal and Sunset Limited.

“Of course, to do so will require reasonable cooperation from our host railroads and available equipment,” Coscia wrote.

It is not yet what steps Amtrak might take to address the wearing out Superliner fleet.