Amtrak: Deteriorated Financial and Operating Conditions Threaten
Long-Term Viability (Testimony, 03/23/95, GAO/T-RCED-95-142).

Amtrak's financial and operating conditions have deteriorated to the
point where its ability to offer nationwide service is seriously
threatened.  Debt, deferred maintenance, and reduced staffing have
helped Amtrak to survive but have also diminished the quality and the
reliability of service.  In December 1994, Amtrak announced an
aggressive plan to reduce expenses by eliminating routes, retiring its
oldest cars, cutting staff, and boosting productivity.  Yet even if the
plan is successful, it will not solve the railroad's long-term problems.
GAO believes that continuing the present course--maintaining the same
funding level and route system, even with proposed service cuts--is
neither feasible nor realistic because Amtrak will continue to
deteriorate.  GAO discusses the implications of several alternatives,
ranging from privatization to limiting service to routes that carry the
largest number of passengers in the most cost-effective manner.

--------------------------- Indexing Terms -----------------------------

 REPORTNUM:  T-RCED-95-142
     TITLE:  Amtrak: Deteriorated Financial and Operating Conditions 
             Threaten Long-Term Viability
      DATE:  03/23/95
   SUBJECT:  Railroad transportation operations
             Railroad industry
             Financial management
             Differential subsidies
             Future budget projections
             Appropriated funds
             Federal aid to railroads
             Mass transit operations
             Transportation industry
             Maintenance costs
IDENTIFIER:  Amtrak Northeast Corridor
             Railroad Retirement Trust Fund
             Amtrak Strategic and Business Plan
             Amtrak Northeast Corridor Improvement Project
             
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