The Amtrak Reform Council, the Congressionally-mandated committee that voted to request a dissolution plan from Amtrak last week, said this week that the railroad's finances are deteriorating and took further shots at its institutional structure. 

The Council's vote does not trigger any short-term changes or cancellation of Amtrak service. Congress is not bound by any finding or recommendation by the Council, by Amtrak or by other parties. 

Still, it's possible that the action will force the issue of how to proceed with U.S. passenger rail development. Amtrak most vociferous critics seem to want rail operations to be privatized, but have not all clearly indicated that subsidized routes in the middle of the country should be abandoned. Amtrak backers point to the much greater federal subsidies given to highways and air travel. The issue may come to a head during 2003's reauthorization of TEA-21, the massive multi-year federal surface transportation spending measure.

Also last week, Amtrak was sued by train manufacturer Bombardier, headed by former MTA chair Peter Stangl. The suit claims Amtrak disrupted the company's ability to deliver high-speed Acela train-sets to the railroad in a timely manner, according to the National Corridors Initiative. Amtrak has been seeking damages from the company for delayed delivery of the trains, and also alleges that Bombardier is shirking maintenance work on the trains specified in its contract.

The boost in ridership Amtrak saw after the Sept. 11 attacks have leveled off at 1-2% above year-ago levels, while the railroad has seen its security spending rise. Overall U.S. leisure travel is down since September. 

National Corridors Initiative

Amtrak Shows Signs of Trouble (June, 2001)

Reform Council Offers New Amtrak Structure (March, 2001)

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