Posts Tagged ‘Richard Anderson’

Amtrak Head Acknowledges Need for New Equipment

November 15, 2017

Amtrak needs to replace or overhaul the rail car fleet that serves its long-distance trains, its co-CEO told the National Association of Railroad Passengers earlier this month.

Richard Anderson

Co-CEO Richard Anderson said rebuilding or replacing aging Superliners and Amfleet cars will receive a “first priority.”

He also said the diesel locomotive fleet used to pull that equipment also needs replacement and/or rebuilding

Anderson said that the first up will be renovations of  Amfleet I and Amfleet II cars followed by new Acela Express trainsets.

New diesel locomotives are being placed into service on corridor routes in the Midwest and West.

Amtrak also expects CAF USA to complete soon an order for 25 new Viewliner II diners to be completed. Last on the list that Anderson ticked off was overhauling the current Acela fleet.

Despite saying it is a priority, Anderson did not describe a plan to replace or rebuild the Superliner fleet.

Amfleet II coaches are used on single-level long-distance trains such as the Lake Shore Limited, Cardinal, Crescent and Silver Service.

Anderson did, though, describe the importance of long-distance trains by emphasizing their role in “connecting small and large communities and bringing the most utility to the most Americans across the country.”

He said Amtrak’s 15 long-distance trains serve a series of markets with just 6 percent of riders traveling from endpoint to endpoint.

Many of those markets have lost or seen their level of intercity bus and airline service greatly diminished.

Anderson said Amtrak faces “risk points” with host railroads delaying Amtrak trains, the Trump administration’s efforts to end funding of long-distance trains and a dire need for capital.

The latter is most acute in the Northeast Corridor although some might say capital is desperately needed to buy new rolling stock and locomotives.

The former airline executive also said Amtrak needs to become more customer-focused.

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Amtrak’s Anderson Sees 3 Challenges

November 6, 2017

Amtrak faces three challenges and two of them are financial, its co-CEO said in an appearance before the National Association of Railroad Passengers last week.

Richard Anderson

Richard Anderson identified two of those as losing its federal funding and getting by with under funding. The third challenge is delays to trains caused by host railroads.

He said Amtrak has been able to get by by generating operating efficiencies that have helped to reduce its “capital deficit.”

Anderson said that has enabled Amtrak to deflect criticism from political forces that seek to dismantle its national network.

As for delays, Anderson said 75 percent of delays to long-distance and state-supported trains are caused by the freight railroads that host Amtrak trains. He said one Class I railroad executive has described Amtrak trains as “an annoyance.”

Anderson noted that he experienced this first-hand when he arrived in Chicago to speak to the NARP convention one hour and 25 minutes late aboard the Capitol Limited. Most of that delay occurred on Norfolk Southern tracks west of Cleveland.

“In 1971 they cut a deal. And I have a rule in life: always keep your deals,” Anderson said. “That’s the policy decision our Congress and President made long ago and have kept in place.”

He was referring to the 1970 law that created Amtrak and how it enabled railroads to discontinue or turn over to the national passenger carrier their intercity passenger trains.

Anderson said Amtrak, “plays a critical role in the national urban infrastructure, and I hope our long-term policy makers figure that out, as they’re doing now in the states.”

Amtrak to Rename Philly 30th Street Station

October 11, 2017

After a delay of three years, Amtrak has told a Pennsylvania senator that it will move ahead on renaming 30th Street Station in Philadelphia as William H. Gray 30th Street Station.

Senator Bob Casey made the announcement after meeting with Amtrak co-CEO Richard H. Anderson.

“I was encouraged by my recent meeting with Amtrak leadership about Philadelphia’s 30th Street Station,” Casey said in a statement. “For the first time, Amtrak has committed to implementing the 2014 federal law renaming the station in honor of the late Congressman William H. Gray, III.”

The name change was mandated in legislation approved in August 2014.

Amtrak has never explained why it delayed renaming the station and it is still not saying when the renaming will occur.

Casey and a group of state and city officials held a news conference last week to pressure Amtrak into acting.

Gray died in 2013 and during his time in office helped to raise millions of dollars for SEPTA, a commuter rail agency that uses the station.

Gray also regularly commuted on Amtrak between Philadelphia and Washington.

He was the first African American to chair the House Budget Committee and the first to serve as minority whip, the third highest-ranking position in the U.S. House. Gray represented the 2nd Congressional District from 1979 to 1991.

Anderson Talks Amtrak on NPR

September 7, 2017

Amtrak co-CEO Richard Anderson has been making the rounds of national broadcast outlets this week to talk about the rail passenger carrier that he joined earlier this year.

Richard Anderson

He appeared on a CBS news program and also on National Public Radio where he was interviewed by Robert Siegel, a co-host of the afternoon program All Things Considered.

As he did at CBS, Anderson told Siegel that updating aging infrastructure is a top priority at Amtrak.

At the same time, he contended that Amtrak is not broken. “It provides very reliable service to over 30 million people a year,”

Anderson said the United States has made a choice not to pursue high-speed rail except in a few areas. “But that doesn’t mean we can’t take the infrastructure that we have and improve our track speeds, where we offer a product that’s competitive with cars and buses because that’s really, in some sense, what we compete against.”

In response to a question by Siegel as to whether the “real, long-range intercity train travel is finished,” Anderson said that to Amtrak long-distance means more than 750 miles.

“And where we see the most growth over the last couple of decades has been in routes under 750 miles, like Milwaukee to Chicago, Detroit to Chicago, San Francisco to Los Angeles down the coast,” he said. “When you think about infrastructure in the U.S., we have become a very urbanized society – less reliance on automobiles, more reliance on public transportation. There’s an important role for Amtrak to play. And that’s actually been one of the fastest-growing parts of this business and represents over half of Amtrak’s passenger traffic annually.”

Anderson Discusses Amtrak’s Priorities

September 6, 2017

Amtrak has dropped the idea of reducing the distance between its seats.

Appearing on the CBS program This Morning, Amtrak’s co-CEO Richard Anderson said that the spacing between seats, known in the industry as pitch, will remain unchanged.

“One of our great advantages is that there are no middle seats,” Anderson said. “Our coach on Amtrak is much, much better than first class on airlines.”

Anderson is a former president of Delta Air Lines. The airline industry is notorious for its efforts over the years to reduce seat pitch in order to cram more passengers aboard its planes.

During the interview, Anderson said that infrastructure repair is the passengers carriers “first imperative.”

The next priority is better service. “We’ve got to clean up our trains, run our trains on time, fix the interiors of our trains, and grow our services in the regions that provide the highest level of service to the communities around the country,” Anderson said.

Anderson said the new equipment that Amtrak has ordered for its Acela Express service will increase capacity in the Northeast Corridor by 40 percent.

He did not, though, say anything about buying new equipment to replace cars used on long-distance trains. Some of that equipment dates to the 1970s. Instead, Amtrak plans to refurbish that equipment.

Increasing service frequency on some routes is an Amtrak goal, but that appears to be limited to densely populated regions.

“If we could get our train speeds up and operate more densely-populated urban corridors, it would be a great service to the traveling public in America,” Anderson said.

Amtrak Eyes Reducing Seat Pitch in Coaches

July 13, 2017

Amtrak may take a page out of the airlines playbook and try to squeeze more passengers into its coaches.

Co-CEO Charles “Wick” Moorman said this week that Amtrak is studying the creation of a new economy class that would have less room between seats, known as seat pitch.

“We are looking at doing some creative things in terms of creating an economy class,” Moorman told the National Press Club in Washington.

For years the airlines have been reducing seat pitch in an effort to increase seating and therefore increase the amount of revenue earned per flight.

Moorman said the carrier has not decided whether to implement the idea, but acknowledged “there will be some other things that just don’t make it quite as comfortable.”

For years, Amtrak has touted how it offers more leg room than the airlines and that its trains do not have a center seat as do many jetliners.

“We compete very well with the airlines,” Moorman said, adding that travelers in the New York-Washington who take Amtrak avoid New York’s LaGuardia Airport and lengthy airport security lines.

The tighter seat proposal was revealed on the same day that Moorman began sharing the CEO post with Richard Anderson, a former Delta Air Lines head.

Observers Give Their Take on Amtrak’s new CEO

June 29, 2017

So who is this former airline executive that Amtrak has chosen to take over as its CEO later this year when Charles “Wick” Moorman retires?

Richard Anderson

Richard Anderson was the head of Delta Air Lines, but he also at one time served as a prosecutor and the vice president of an insurance company, United Health.

His father, Hale, worked for the Atchison, Topeka & Santa Fe in Texas and the family moved multiple times as the elder Anderson held office jobs at posts from Galveston to Dallas and Amarillo.

When he was in college, the younger Anderson’s parents died of cancer and he subsequently had to raise his two younger sisters as he worked to earn college tuition money.

After earning his law degree, Anderson worked in Texas for nearly a decade as a prosecutor.

His entry into the airline industry began in the legal department of Houston-based Continental Airlines.

He would later join Northwest Airlines and became its CEO three years later. As Delta Air Lines was emerging from bankruptcy in 2007, its board of directors asked Anderson to become its CEO, which meant that he succeeded Gerald Grinstein, a former CEO of the Burlington Northern Railroad.

“Richard has a hands-on, roll-up-your-sleeves, let-me-see-how-this-thing-really-works kind of approach,” John Dasburg, Northwest’s former president, told USA Today in 2008.

During his time at Delta, Anderson sometimes sought unconventional solutions to solve problems.

For example, in an effort to cut fuel costs, Delta purchased an oil refinery near Philadelphia in 2012.

Industry reaction to Anderson being named co-CEO of Amtrak – Moorman won’t be retiring until late December – has been mostly positive.

He received unqualified endorsements from Linda Bauer Darr, president of the American Short Line and Regional Rail Road Association, and from Ed Hamberger, the president of the Association of American Railroads.

Jim Mathews, head of the National Association of Railroad Passengers lauded Anderson’s transportation experience.

“NARP is very pleased Amtrak is making the sensible move of bringing in an executive with strong management experience in a customer-service oriented transportation company,” Mathews said.

Former NARP executive director Ross Capon said the fact that Moorman will be Amtrak’s co-CEO through December shows the two men will likely have a good working relationship and that Anderson will be able to learn from Moorman.

Not all advocacy groups were enthusiastic about Anderson’s appointment.

Charles Leocha, chairman of Travelers United and an airline consumer advocate, said in an interview with Trains magazine that Anderson is “a real charger” who “has not been a friend of consumers, but ran an efficient airline as consolidation was completed . . .”

Richard Rudolph, the president of the Rail Users Network, said Amtrak needs someone who knows railroads, knows how to run a company and can stand up against Congress and President Donald Trump.

Also expressing skepticism was former Amtrak President and CEO David Gunn.

“If he can’t coax people at Amtrak who know how to run a railroad out of their fox holes, he’s doomed,” Gunn said in an interview with Trains. “And you have to convince them you have a plan that makes sense operationally and is not driven by politics.”

Gunn said the best hope is that Anderson has some knowledge of railroad operations.”

Jackson McQuigg, a railroad historian and passenger advocate based in Atlanta, told Trains that he sees in Anderson a man with a demeanor similar to that of W. Graham Claytor Jr. between 1982 and 1993.

“He had a stellar reputation in Atlanta and cared about the city and its history,” McQuigg told Trains.

While at Delta and Northwest, McQuigg noted, Anderson had a reputation for being a tough guy who wasn’t afraid to mix it up with the airline unions.

“Maybe that bunch in the White House will listen to him,” McQuigg said of Anderson. “It will be interesting to see if that happens or if Anderson presides over dismemberment instead. All I know is that the long-distance trains had better be preserved or the whole thing will go up in political flames.”

Richard Anderson to Become co-CEO of Amtrak July 12, Wick Moorman to Retire Dec. 31

June 26, 2017

Amtrak will be getting a co-president and CEO next month. Charles “Wick” Moorman will be joined by Richard Anderson, who has 25 years of experience in the airline industry.

This arrangement will continue until Dec. 31, when Moorman plans to step down from his position at Amtrak but continue as an adviser to the company.

The announcement was made in an internal memorandum sent to Amtrak employees and confirmed by a statement issued by Amtrak.

In the memo to employees, Moorman noted that he promised his wife that he time at Amtrak would be short.

Moorman said he said he would stay at Amtrak only as long it took to achieve three goals: Making the company more efficient, developing a stronger safety culture and working with the board of directors to find an executive to lead the railroad long term.

Anderson is a former chief executive at Delta Air Lines and Northwest Airlines, the latter having been acquired by the former.

“Richard has a proven track record of driving growth while enhancing the customer experience,” Moorman said. “What I really admire about Richard is he faces difficult challenges head-on. He has helped companies navigate bankruptcy, a recession, mergers and acquisitions, and 9/11. In total, Richard is a leader with the strategic vision and tactical experience necessary to run a railroad that benefits our partners, our customers and our employees.”

The statement noted that Anderson’s father worked for the Santa Fe.

Anderson, 62, most recently was executive chairman of the Delta Air Lines board of directors after serving as the airline’s CEO from 2007 to 2016. He was executive vice president at United Healthcare from  2004 to 2007 and CEO of Northwest Airlines from 2001 to 2004.

He also served in the legal division at Continental Airlines and was a former county prosecutor.

“It is an honor to join Amtrak at a time when passenger rail service is growing in importance in America. I look forward to working  alongside Amtrak’s dedicated employees to continue the improvements  begun by Wick,” Anderson said in a statement.

Anderson earned a Bachelor of Arts degree at the University of Houston at Clear Lake City and a Juris Doctorate at South Texas College of Law. He is a native of Galveston, Texas.