Amtrak passenger railroad needs up to $4.9 billion in U.S. funding: CEO

Amtrak passenger railroad needs up to $4.9 billion in U.S. funding: CEO

imageStock MarketsSep 09, 2020 01:05PM ET

(C) Reuters. William J. Flynn, President and CEO of Atlas Air Worldwide speaks in a panel discussion at the 2015 International Air Transport Association (IATA) Annual General Meeting (AGM) and World Air Transport Summit in Miami Beach

By David Shepardson

WASHINGTON (Reuters) – Amtrak Chief Executive William Flynn told Congress on Wednesday the U.S. passenger railroad needs up to $4.9 billion in government funding to avoid service and job cuts, and address mounting losses.

Flynn said the government-owned corporation anticipates needing that amount “to operate and invest in our network, support our partners, and address various congressional concerns like avoiding employee furloughs and maintaining daily long distance service.”

Amtrak is burning $250 million a month and without additional government assistance would have to make “very dramatic reductions across the company in order to stave off bankruptcy,” Flynn told a U.S. House of Representatives subcommittee.

Amtrak in May had asked for a further $1.475 billion bailout after getting $1 billion from Congress in April. It typically receives $2 billion in annual government support.

Last week, Amtrak said it would furlough more than 2,000 workers, or about 10% of its staff, on Oct. 1 as a result of the steep decline in travel demand during the coronavirus pandemic – ridership and revenue levels are down 95% year-over-year.

Approximately 1,950 union members will be furloughed and 100 management jobs will be cut. Amtrak has said previously it employs about 20,000 workers.

Beginning in October, Amtrak is temporarily reducing service on most long distance routes from daily to three times per week after making earlier significant cuts to other service.

Transit agencies are urging Congress to approve up to %$36 billion on top of a $25 billion bailout it approved in March. Urban transit systems have been hurt by millions of workers staying home rather than commuting and a sharp decline in tourism.

Private U.S. bus companies are seeking $15 billion in government assistance.

U.S. airports want $10 billion in government assistance on top of an earlier $10 billion bailout, while passenger airlines want a further $25 billion in payroll assistance.

Amtrak passenger railroad needs up to $4.9 billion in U.S. funding: CEO

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

No Comments

Post A Comment