Passenger Trains > Hit by Coronavirus, Amtrak banks on billion dollar bailout

How quickly Amtrak’s finances have been decimated.

https://www.wsj.com/articles/hit-by-coronavirus-amtrak-banks-on-billion-dollar-bailout-to-stay-afloat-11584979346



Edited 2 time(s). Last edit at 03/23/20 17:16 by GN1969.

Hahaha! You guys obviously have worked at Amtrak during some point in your lives, spot on!

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cabsignaldrop Wrote:
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> Hahaha! You guys obviously have worked at Amtrak
> during some point in your lives, spot on!
>

BNSF - same thing.

TAW

This whole thing plays right into Anderson’s hands— will be interesting to see how it’s spun and worked into all sorts of narratives by defensive managers who think they have some control in all of this.
Right now, it’s looking like the Titanic— which took less than 3 hours to sink. This one will take a little longer, but sadly seems headed to the bottom just as well unless it gets a billion bucks for the next “safe to safer”, “glidepath to self sufficiency” or “boxed lunch/ contemporary dining plan” yada yada



Edited 1 time(s). Last edit at 03/23/20 22:30 by IC_2024.

I don't know if it plays in Andserson's hands. Look at the service that has been cancelled and what is running. He'll be gone with his tail between his legs in a few weeks anyway. 

Since this is STIMULUS money, and they want to get people back to work, or continue their employment, how about this:

-Send all P40s to Erie-Wabtec for rebuilding
-Order 120 Viewliner 2s from CAF, so their production line can keep on running (coaches and lounge cars will complete the rebuild of Eastern long hauls)
-Order more Siemens short distance cars
-Rebuild and reconfigure the Acelas, as their replacements arrive (10 or 12 car trainsets)
-Order 75 F125s from Progressive Rail
-Have Beech Grove rebuild all Superliners sitting around their backlot; yes, even those wrecked and needing significant repairs
-Build the CREATE connection track at Grand Crossing in Chicago, enabling improved service for 50-51, 58-59, 390-393
-Replace/rebuild the connecting track at the west end of the PGH station, which was unwisely torn out

Many of these projects are "shovel ready" and will stimulate good economic activity.  

Very well thought out.

Looking for a CEO job?

MEKoch Wrote:
-------------------------------------------------------
> Since this is STIMULUS money, and they want to get
> people back to work, or continue their employment,
> how about this:
>
> -Send all P40s to Erie-Wabtec for rebuilding
> -Order 120 Viewliner 2s from CAF, so their
> production line can keep on running (coaches and
> lounge cars will complete the rebuild of Eastern
> long hauls)
> -Order more Siemens short distance cars
> -Rebuild and reconfigure the Acelas, as their
> replacements arrive (10 or 12 car trainsets)
> -Order 75 F125s from Progressive Rail
> -Have Beech Grove rebuild all Superliners sitting
> around their backlot; yes, even those wrecked and
> needing significant repairs
> -Build the CREATE connection track at Grand
> Crossing in Chicago, enabling improved service for
> 50-51, 58-59, 390-393
> -Replace/rebuild the connecting track at the west
> end of the PGH station, which was unwisely torn
> out
>
> Many of these projects are "shovel ready" and will
> stimulate good economic activity.  

But, it's fundamentally different and not a "stimulus." The federal money is to ward off insolvency--and a crash landing. Amtrak simply can't shed expenses fast enough, even with draconian service reductions.

Amtrak's annual passenger revenues in FY 2019 were in the neighborhood of $2.7 billion. At 40% drop-off for the fiscal year 2020 is more than $1 billion. Amtrak may take a bigger hit than 40%.

At a minimum, and under the rosiest of scenarios, Amtrak is looking at two very, very bad quarters.

Additionally, I would say expecting the public's confidence to return, and for some semblance of normalcy to return to the travel industry by July 1 is extremely optimistic. So make that three bad quarters.

MEKoch Wrote:
-------------------------------------------------------
> Since this is STIMULUS money, and they want to get
> people back to work, or continue their employment,
> how about this:
>
> -Send all P40s ..

Paul Wilson
Arlington, VA