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Deterioration of Amtrak Service

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Posted by NKP guy on Wednesday, January 9, 2019 9:13 PM

   If we take $34.7 billion in accumulated losses and divide it by 48 years, that comes to a loss of $723 million a year; right?  (My desk calculator doesn't do billions)

   Forgive me for saying so, but as a taxpayer I can certainly live with that.

   So what's the problem?

 

 

   

 

 

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Posted by JPS1 on Wednesday, January 9, 2019 10:12 PM

NKP guy

If we take $34.7 billion in accumulated losses and divide it by 48 years, that comes to a loss of $723 million a year; right?  (My desk calculator doesn't do billions)

Forgive me for saying so, but as a taxpayer I can certainly live with that.

So what's the problem? 

Priorities!  The money could have been better spent on infrastructure, education, medical care for the poor, etc. 

The amount posted – $34.7 million - is the accumulated deficit shown in the Amtrak's FY17 Consolidated Balance Sheet.  It does not include the prior period(s) accumulated cash transfers from the federal and state governments that were capitalized and are yet to flow through the Consolidate Statement of Comprehensive Losses.

According to the Federal Railroad Administration, total federal funding in nominal dollars at the end of FY17 for Amtrak since its inception was $47.3 billion.  Restated in 2017 dollars, which have been adjusted for inflation, the amount is a tad over $81 billion.

Most of the difference between the $47.3 billion and the $34.7 billion probably lies in the funds that were capitalized for property, plant, and equipment in prior period(s) and are flowing through the income statement as depreciation, interest and miscellaneous expenses. 

In FY17 Amtrak received $2.3 billion from federal and state governments.  Where did it go?  Some of it - $355 million – went to cover the company’s cash shortfalls from operations.  Some of it - $1.6 billion – was used to purchase and/or refurbish property, plant, and equipment, and some of it was used to service the company’s long-term debt. 

The amounts that were capitalized as property, plant, and equipment, depending on the nature of the assets, could take decades to flow through the Consolidated Statement of Operations and, therefore, be embed in the accumulated deficit as shown in the company’s Consolidated Balance Sheet.

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Posted by NKP guy on Thursday, January 10, 2019 7:08 AM

JPS1
Priorities!  The money could have been better spent on infrastructure, education, medical care for the poor, etc. 

   But it wouldn't have been, and you know that.

   

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Posted by JPS1 on Thursday, January 10, 2019 7:49 AM

NKP guy
 JPS1 Priorities!  The money could have been better spent on infrastructure, education, medical care for the poor, etc. 

But it wouldn't have been, and you know that. 

No, I don't know that!   No one knows what would have been done if the money had not been spent on Amtrak.   
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Posted by Backshop on Thursday, January 10, 2019 7:58 AM

Everybody wants the govt to be frugal, except for when it comes to their pet projects.  How many times have you heard "my congresscritter is great, it's all the rest that suck"?

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Posted by NKP guy on Thursday, January 10, 2019 8:26 AM

   Well, I can say with certitude that it most definitely would not have been spent on education or medical care for the poor.  

   Money spent/invested on Amtrak is, in part, spent/invested on infrastructure.

   

   

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Posted by Shock Control on Thursday, January 10, 2019 9:56 AM

155 replies and not a single mention of cocktails.  Does Amtrak serve cocktails on its long-distance trips, and if so, do they use fresh, corn-syrup-free mixers? 

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Posted by Deggesty on Thursday, January 10, 2019 11:29 AM

Shock Control

155 replies and not a single mention of cocktails.  Does Amtrak serve cocktails on its long-distance trips, and if so, do they use fresh, corn-syrup-free mixers? 

 

As to corn-syrup free mixers, nothing is said.

As to spirits: (from the Coast Starlight menu found on Amtrak's website; this is the standard offering)

Premium Spirits ...........................................................7.50

Spirits  – Jack Daniel’s Black Label, Dewar’s Scotch, Finlandia Vodka,    Tanqueray Gin, Bacardi Rum   

Mixers – Club Soda, Tonic Water, Ginger Ale, Bloody Mary Mix, Orange Juice

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Posted by BaltACD on Thursday, January 10, 2019 11:32 AM

Backshop
Everybody wants the govt to be frugal, except for when it comes to their pet projects.  How many times have you heard "my congresscritter is great, it's all the rest that suck"?

And thus the House always has 434 idiots and 'my guy or girl'.

Would it be beneficial to have a Amendment to the Constitution where in 'the nation' votes for 'your district's Representative' and you vote for or against the Representatives in all the districts EXCEPT yours?

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Posted by JPS1 on Thursday, January 10, 2019 1:55 PM

NKP guy
 Money spent/invested on Amtrak is, in part, spent/invested on infrastructure. 

Since its inception U.S. taxpayers have invested approximately $25.9 billion (nominal dollars) in Amtrak’s infrastructure, which for these purposes is defined as the property, plant and equipment required for its activity.
 
The approximate investments before depreciation have been: locomotives ($2.76 billion), passenger cars and other rolling stock ($4.56 billion), and right-of-way and other properties ($25.9 billion).  The information is taken from the company’s Consolidated Balance Sheet for the Year Ended September 30, 2017.
 
The difference between the monies received from the federal government and the total taxpayer outlays to fund Amtrak’s operations is $21.4 billion, which presumably has been used to cover operating expenses. 
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Posted by CMStPnP on Thursday, January 10, 2019 2:00 PM

Shock Control
155 replies and not a single mention of cocktails.  Does Amtrak serve cocktails on its long-distance trips, and if so, do they use fresh, corn-syrup-free mixers? 

Back when the Superliners were new they had an upper level attendant in the Lounge Car that staffed the upper mini-bar.    I can't remember if he mixed the drinks himself or distributed the mini-bottles.     It was more passenger convienent than having to descend and reclimb the steps to the eating lounge everytime you wanted a soda.

They also used to have an electric piano down stairs against the opposite wall where the food is sold now.

Also remember on the Empire Builder of the 1970's if you were in the Vista Dome the car attendent would take drink orders at your seat and bring the drink to you.

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Posted by Deggesty on Thursday, January 10, 2019 2:27 PM

On my last trip (1980) before Amtrak tried its McDonald experiment, I enjoyed some Benedictine on the Sunset Limited. I do not remember what else was available. After that trip, I paid little attention to what strong waters were available.

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Posted by Shock Control on Thursday, January 10, 2019 4:54 PM

Deggesty
As to corn-syrup free mixers, nothing is said

As to spirits: (from the Coast Starlight menu found on Amtrak's website; this is the standard offering)

Premium Spirits ...........................................................7.50

Spirits  – Jack Daniel’s Black Label, Dewar’s Scotch, Finlandia Vodka,    Tanqueray Gin, Bacardi Rum   

Mixers – Club Soda, Tonic Water, Ginger Ale, Bloody Mary Mix, Orange Juice

So there you have it.

In this era of craft cocktails, pop-up bars, neo-speakeasies, pre-Prohibition cocktails, and emphasis on fresh, high-end indgredients, this is what you get on a long-distance Amtrak trip.

It's one thing to settle for a Bacardi and coke on a two-hour plane trip, but if I'm stuck on a train for two days and these are my options, I would consider flying.

On second thought, the Jack Daniels with club soda isn't too bad.

I write this drinking an Old-Fashioned using a California mandarin, Bada Bing cherries, bitters, Demerara sugar syrup, spring water ice, and Jim Beam Pre-Prohibition Rye.

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Posted by NKP guy on Thursday, January 10, 2019 7:19 PM

Shock Control
In this era of craft cocktails, pop-up bars, neo-speakeasies, pre-Prohibition cocktails, and emphasis on fresh, high-end indgredients, this is what you get on a long-distance Amtrak trip. It's one thing to settle for a Bacardi and coke on a two-hour plane trip, but if I'm stuck on a train for two days and these are my options, I would consider flying.

 

   Remember that if one travels in a roomette or bedroom one can do as many people have for years:  mix one's own own drinks.  One can easily mix one's own cocktails in the Amtrak-provided clear plastic cup, add some AmIce, and then take one's drink into the observation or lounge car.  Just be discreet.  Or simply stay in your room and enjoy the ride from that fine location.

   The real trick in Amtrak travel is adding some whiskey to the aforesaid cup with AmIce, while traveling via Acela; one hates to be obvious, n'est ce pas?

   Still, having to carry one's own cocktail mixes, shakers and stirrers seems a minor inconvenience compared to customers/passengers on the Lake Shore Limited and Capitol Limited now having to bring along their own food.

 

 

   

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Posted by Shock Control on Thursday, January 10, 2019 7:43 PM

NKP guy
...Still, having to carry one's own cocktail mixes, shakers and stirrers seems a minor inconvenience compared to customers/passengers on the Lake Shore Limited and Capitol Limited now having to bring along their own food.

True dat.

It makes me simultaneously happy and sad that Amtrak still clings to old route names like the Capitol Limited, suggesting a glamorous, bygone era of rail travel, when you're riding on something a notch or two above a commuter rail. I can only assume that they are not using a B&O E unit for the locomotive.  ;)

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Posted by BaltACD on Thursday, January 10, 2019 9:04 PM

Shock Control
True dat.

It makes me simultaneously happy and sad that Amtrak still clings to old route names like the Capitol Limited, suggesting a glamorous, bygone era of rail travel, when you're riding on something a notch or two above a commuter rail. I can only assume that they are not using a B&O E unit for the locomotive.  ;)

Nor do they have the Napanee or Wawasee 5BR Observation/lounge cars bringing up the markers and EOT.

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Posted by Electroliner 1935 on Thursday, January 10, 2019 9:18 PM

TThe UP bars had bar tenders with normal size liquer bottles. They had a bonded commissary at the Milwaukee Road coach yards after their West Coast trains were transferred from the C&NW. All the other RR's I rode on used the mini single serve bottles. Was the UP the only one to use full size bottles.  

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Posted by CSSHEGEWISCH on Friday, January 11, 2019 7:10 AM

I doubt it.  State liquor laws vary widely and govern how liquor may be served.  Some states were dry on Sundays which led to buying your drinks before the bar stopped serving.

The daily commute is part of everyday life but I get two rides a day out of it. Paul
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Posted by CMStPnP on Friday, January 11, 2019 7:28 AM

Shock Control
In this era of craft cocktails, pop-up bars, neo-speakeasies, pre-Prohibition cocktails, and emphasis on fresh, high-end indgredients, this is what you get on a long-distance Amtrak trip.

You have to be realistic, craft cocktails and a changing restaurant type menu for food and beverage is beyond the skill level of any Amtrak employee I have observed or I should say beyond what Amtrak wants to train.   Wasn't always this way.   To me early Amtrak of the 1970's the employees were a lot smarter because I think the percentage of former railroad employees was a lot higher and trained them all.

My last trip I asked the Sleeping Car attendent what the lights were on the side of the trainsition sleeper and the response was:  "Don't ask me about the lights on any of these cars, I don't know how they operate, I just make beds and keep things clean".    I could not believe my ears.    Apparently only the train conductor or operations crew can answer those questions.     So much for cross training to enhance safety.

I was asking about what appeared to be vesibule lights they have now on crew sleepers on either side of the door that light up the platform, which look really nice at night and the other Superliner cars should have them, IMHO.   They must be relatively new or I am just noticing them.

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Posted by Shock Control on Friday, January 11, 2019 7:58 AM

CMStPnP
 

You have to be realistic, craft cocktails and a changing restaurant type menu for food and beverage is beyond the skill level of any Amtrak employee I have observed or I should say beyond what Amtrak wants to train.

Understood, but skills aside, they lack the ingredients even if they have the skills.  My point is that if Amtrak wants to be relevant in the 21st century, they need to provide 21st-century amenities.  Amtrak is fine between New York and DC or between New York and Boston, but that's about it.

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Posted by blue streak 1 on Tuesday, January 15, 2019 12:09 PM

Railway age article that is a big swipe at Anderson calling for his firing.  Even though Railway age is freight orientated it is refreshing to know that it is supporting Amtrak!

https://www.railwayage.com/passenger/amtrak-riders-revolution-no-confidence-for-richard-anderson/ 

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Posted by BaltACD on Tuesday, January 15, 2019 12:32 PM

Anderson's Amtrak is in the business of actively drivng away customers - Right out of the SP & PC passenger playbooks.

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Posted by MidlandMike on Tuesday, January 15, 2019 9:14 PM

blue streak 1

Railway age article that is a big swipe at Anderson calling for his firing.  Even though Railway age is freight orientated it is refreshing to know that it is supporting Amtrak!

https://www.railwayage.com/passenger/amtrak-riders-revolution-no-confidence-for-richard-anderson/ 

 

In the article, I understand their objections to the ARC project, but what is their problem with GATEWAY?

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Posted by matthewsaggie on Tuesday, January 15, 2019 9:28 PM

I don't read this as an editorial opinion of Railway Age, but that of an advocate for passenger trains they have given space to.

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Posted by CMStPnP on Tuesday, January 15, 2019 11:07 PM

BaltACD
Anderson's Amtrak is in the business of actively drivng away customers - Right out of the SP & PC passenger playbooks.

I disagree, I think he is as genuinely stupid as is Amtrak's Gardener.   I think in some cases he is attempting to take incremental steps to cut costs but I don't see equal attempts to boost revenue and ridership.   You can't just cost cut your way to success.    Stupid people are easily hidden in the airline industry or made to be smart people in the airline industry.   

Look at AMR's Crandall, hailed as a balance sheet genius and the inventor of the frequent flyer loyalty program.....I thought he was one of the biggest idiots ever to run a major airline and he is probably the key reason American Airlines no longer exists.     The whole "we can cut costs by millions by cutting the olives in a salad to one" was another step in the degradation of airline food.   Which Crandall would repeatedly tell Congress.   "Americans do not want good food on airlines, they want cheap fares"......which in my view is an over simplification of the market.

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Posted by Backshop on Wednesday, January 16, 2019 6:53 AM

CMStPnP
 

Look at AMR's Crandall, hailed as a balance sheet genius and the inventor of the frequent flyer loyalty program.....I thought he was one of the biggest idiots ever to run a major airline and he is probably the key reason American Airlines no longer exists.     The whole "we can cut costs by millions by cutting the olives in a salad to one" was another step in the degradation of airline food.   Which Crandall would repeatedly tell Congress.   "Americans do not want good food on airlines, they want cheap fares"......which in my view is an over simplification of the market.

 

American Airlines no longer exists?  Could've fooled me.  It's the largest airline in the world by passenger revenue miles.  Anderson's Delta is the most profitable.  The rise of LCC's like Southwest, Spirit and Frontier in North America and RyanAir and EasyJet in Europe show that low fares is all most passengers want.
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Posted by CSSHEGEWISCH on Wednesday, January 16, 2019 6:58 AM

The success of Southwest Airlines and other discount carriers who stuck to their business plan shows that Crandall wasn't too far off the mark.

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Posted by CMStPnP on Wednesday, January 16, 2019 9:46 AM

American Airlines  was taken over by U.S. Airways in a merger which was in fact a U.S. Airways purchase and take over as after the merger it was U.S. Airways management running American Airlines from American HQ.   They decided to chuck the U.S. Airways brand and continue with American Airlines branding and paint as it was more recognized.

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Posted by CMStPnP on Wednesday, January 16, 2019 9:55 AM

CSSHEGEWISCH
The success of Southwest Airlines and other discount carriers who stuck to their business plan shows that Crandall wasn't too far off the mark.

Southwest and other discount carriers have a niche in short trips.   Even if they were willing to buy larger planes, I have my doubts Southwest could compete against a major transatlantic or trans pacific carrier.    Precisely because airline travelers expect more than Southwest is willing to provide long distance.     The long distance vs short distance business models appear to be different to me in the airline industry.......I could be mistaken on that of course.    Just seems to me there are not a lot of no frills airlines in the over 10 hour nonstop trip category.

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Posted by charlie hebdo on Wednesday, January 16, 2019 9:58 AM

 

By the merger agreement, stakeholders of AMR would own 72% of the company and US Airways shareholders would own the remaining 28%. The combined airline carries the American Airlines name and branding. The holding company was renamed American Airlines Group Inc. The US Airways' management team, including its CEO, retained most operational management positions.

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