(Reuters circulated the following article on July 26.)
WASHINGTON — Amtrak should explore eliminating its first-class sleeper and dining-car services on some or all of its long-distance trains to save money, a Transportation Department watchdog recommended on Tuesday.
The railroad’s long-distance trains — those that operate on routes of more than 500 miles (800 km) — are in the cross-hairs of Bush administration budget cutters who are trying to force a reduction in government subsidies to Amtrak.
Congress is considering more than $1.4 billion in aid to passenger rail service for the fiscal year beginning Oct. 1. Amtrak received just over $1.2 billion this year. The administration has recommended no money for Amtrak unless it reduces costs substantially by changing the way it does business.
Some Amtrak critics have called for the railroad to eliminate its long-distance trains, a move the railroad has resisted for years.
But Kenneth Mead, the Transportation Department’s inspector general, proposes that Amtrak first analyze its long-distance routes more closely and consider eliminating some services while preserving routes.
More than a dozen long-distance trains operate in 41 states but mainly ply the South, West and Midwest. They are generally favored by individual congressional lawmakers, who decide Amtrak’s funding each year, because of the service and jobs brought to small communities in their states. One of the more popular trains is the Auto Train from Virginia to Florida.
In 2004, long-distance trains carried 3.9 million passengers but incurred operating losses of more than $600 million despite a federal subsidy of more than $480 million.
Mead targeted first-class sleeper and dining cars on these trains for cost cuts, saying Amtrak could save between $75 million and $158 million annually by getting rid of them and their related amenities, including checked bag and high-end food and beverage service.
First-class sleepers have private rooms with shower, and entertainment options, including movies.
Transportation Secretary Norman Mineta, who has been pressuring Amtrak to reform its business practices, said Mead’s report identified several “clear, practical and effective steps” Amtrak could take to save money while maintaining routes.
An Amtrak official could not be reached for comment.
Key Senate lawmakers plan to introduce an Amtrak reform plan on Wednesday that would force business reforms in return for continued federal investment over six years.