WASHINGTON — According to a wire service, Amtrak, which needed a federal bailout to avert a threatened shutdown this month, is headed for its second straight annual loss of at least $1 billion, the railroad’s president told Congress on Wednesday.
David Gunn said at a Senate hearing that Amtrak’s red ink this fiscal year would be similar to 2001 when overall losses hit a record $1.1 billion. Cash losses, which account for depreciation, would total about $500 million, he added.
The fiscal year ends Sept. 30, and Gunn has said Amtrak must have at least $1.2 billion in federal subsidies by then to operate for another year.
The Bush administration has said it would not support that level of assistance unless Amtrak enacted substantial reforms in how it does business, including possible route changes.
Amtrak received a $100 million loan from the government last Friday as part of a bailout to avert a threatened shutdown this month and keep the trains running into August.
Allan Rutter, director of the Federal Railroad Administration, said at the same hearing that the Bush administration would propose a financing plan of up to $170 million to Congress within days to keep Amtrak trains running until October.
Proposal options include a federal loan guarantee so Amtrak can access its now frozen line of credit or a direct grant from Congress.
Gunn told lawmakers he would prefer a proposal already included in emergency homeland security funding legislation that would give Amtrak $205 million to operate through the fiscal year. House and Senate negotiators are still working on a final version of that bill.
Amtrak has never made money as a for-profit company created by the government 31 years ago.