Richard Anderson On Borrowed Time?
It’s hard to know how thin the ice is under Amtrak’s president and CEO, Richard Anderson.
Maybe I missed it, but no one on the Amtrak board of directors appears to have uttered any words of praise for Anderson’s job performance, even off the record. That’s interesting. If the board is happy with Anderson, but he’s being battered by a lot of criticism, we could expect to see the board chair, Anthony Coscia, on the 6:00 News saying nice things about Anderson. If, on the other hand, they’re not happy with Anderson—especially if they could be thinking about replacing him—it would be best to say nothing.
Since coming aboard as Amtrak’s CEO, Anderson hasn’t made many friends. He initiated a series of cost-cutting moves which have provoked a steady drumbeat of criticism. Speaking personally, I can never forgive his decision to pull the Pacific Parlour Cars out of service permanently, turning the Coast Starlight into just another train.
And, most recently, by removing the traditional full-service dining cars from the Lake Shore and the Capitol Limited, Anderson has taken away the one unique and enjoyable experience that only an Amtrak long-distance train offers.
On most days, we can fly from Boston to Chicago for $100. Does Richard Anderson ever wonder why we’ll pay $500 for a roomette on the Lake Shore Limited instead?
We take the Zephyr or the Lake Shore or the Meteor instead of Delta or JetBlue because we find much pleasure in the experience. Just a few years ago, that included small chilled bottles of cheap champagne when we boarded and a newspaper slipped under the door of our roomette early the next morning. And, by God, it sure as hell includes a full-service dining car.
Anderson thinks it’s the steak that keeps us coming back. It’s not … it’s the sizzle!
Pardon my second “appearance” on this thread but this AM while mulling this over again, a second possibility came to me. Is it possible that Chairman Coscia secretly agrees with Anderson, but beholding so much of a tide against him is just being quiet to try to save his own “hide”?
Anything is possible; nothing would surprise me.
This may present Amtrak with the opportunity to invest in its future for the rail passengers of America. Time to restore the Dining Cars on the eastern trains, the Parlour Cars on the Starlight and expand service and the experience. On a personal level, I would love to see a resumption of service between Los Angeles and Las Vegas.
Lucky you! Brightline has apparently just acquired the rights to provide the LA-to-Vegas service.
Isn’t this a subject that stirs some excitement! If there’s anyone who should feel unwelcome, unwanted and unneeded in this particular capacity it’s him. His niche must be elsewhere, not as CEO of Amtrak. Out of common sense seems like he’d rather be someplace where he’s appreciated. I think he must have thought that he was going to be the big hero at Amtrak, solving all it’s problems.
Richard Anderson and other business leaders like him seem to think success comes with simply improving the bottom line. At least this is the impression I get from following his actions thus far in his tenure as CEO.
I also believe the real problem does not lie with the Richard Anderson’s of the world but with those charged with hiring them. AMTRAK, being a government sponsored entity has taxpayers as its golden goose. Consequently, I question the motivations of the board members who hire people like Anderson.
Anderson comes from an industry that tries to squeeze customers for every last penny they can get, while providing less and less in return. The airline industry is based on turning quick profits at the lowest cost.
AMTRAK, is just the opposite. AMTRAK riders are willing to shell out more money to get from point A to point B even though it takes longer, there are typically delays, and the food can be iffy and expensive. Rail passengers do this for the experience that only comes from train travel.
AMTRAK needs to shift their focus from reducing costs to increasing revenue. Cost savings are ultimately limited, there is only so much that can be cut after all, however on the flip side the ability to increase revenue is uncapped.
Bullseye!
I agree with you insofar you talk about Sleeping car passengers, which is a premium product. At the same time, I do believe there is a market for budget travellers in coach, and as a public entity Amtrak should try to cater for them to.
You’re quite right. The truth is, I do focus on sleeping car passengers because, for one thing, I AM one … but also because it’s those of us who travel in the sleepers who have been most affected by Mr. Anderson’s cost-cutting.
Anderson runs Amtrak like an airline in a competitive market and is oblivious to Amtrak’s importance to so many communities. He’s a disaster. He seems deternined to cut to profitability—that elusive dream of so many failed executives.