NEW YORK — Amtrak President and CEO Richard Anderson made a rare public appearance Thursday at the Skift Global 2019 Travel Industry Conference, voicing many of the themes that have defined the passenger carrier since he took charge: an emphasis on short-haul service, the “experiential” nature of long-distance trains, and the contention that Amtrak will break even in the next 12 months.
He said the company is “going to simplify to a single food car,” and that train food service has been simplified to achieve cost cuts mandated by Congress. That process has seen the elimination of onboard meal preparation on some routes in the eastern U.S., with others set to follow. [See “Analysis: ‘Evolving’ menu on tap for all Amtrak eastern overnighters,” Trains News Wire, Sept. 17, 2019.]
With short-haul markets such as Milwaukee-Chicago unprofitable for airlines, Anderson — who spent 25 years in the airline industry as Northwest and Delta airlines — said Amtrak needs to build passenger revenue in those markets. As millennials expand urban population, Amtrak will take over a greater share of air/rail volume in these markets. He noted that rail travel accounts for 75 percent of total air/rail travel between Washington D.C. and New York City; with 95% of ridership going 300 miles or less, he felt that was the best area to concentrate in.
Anderson cited the Chicago-Seattle Empire Builder in discussing long-haul operations, saying that connecting the smaller communities along its route is a political concern and that the subsidy of $150 per passenger contravenes the current business model. He believes Amtrak’s future includes five to 10 “experiential” long-haul trains along the lines of VIA Rail Canada’s cross-country Canadian.
Other points from Anderson’s presentation:
— Compliance with the Americans with Disabilities Act is essential for growth, he said, a concern reflected in the design of the next-generation Acela Express trains, which will have no traditional doors between cars, helping mobility-challenged travelers. The company is also pursuing the possibility of having high-level platforms at all stations to achieve full compliance.
— He said Amtrak should receive a greater, fair share of subsidies to maintain its system, given that the highways receive $50 billion and airlines receive $3 billion. Improvements of the tunnels to New York and Baltimore, and New Jersey’s aging Portal Bridge, need to be part of the passenger railroad’s future.
— Amtrak’s Thruway bus connections bring in $100 million in revenue, he said, and play an important role in bringing underserved parts of the country with no train service into the Amtrak network.
— The yield management systems now in place are ensuring more diverse fares and promotions to increase revenues on existing trains.
In closing, Anderson was asked by one attendee about his top three priorities.
“Our first priority,” he said, “is safe, reliable operations.
“Second, we need a prioritization around that core infrastructure.
“Third, the importance of making sure that funding is well over a long period of time. Our responsibility is to be good stewards of the asset and to make sure that we are delivering projects on time, on budget.”
— Updated at 9:15 a.m. on Sept. 20 to restore lost text at beginning of article.
