Amtrak: Deteriorated Financial and Operating Conditions Threaten
Long-Term Viability (Testimony, 02/07/95, GAO/T-RCED-95-98).

Amtrak's financial condition, always precarious, has declined steadily
to the point that its ability to offer service over its existing 25,000
mile system is seriously threatened.  It is unlikely that Amtrak can
overcome its problems in financing, capital investments, and service
quality without significant increases in passenger revenues or subsidies
from federal, state, and local governments.  In recent years, Amtrak has
responded to deteriorating conditions by taking on debt, deferring
maintenance, and cutting staff.  Some of these measures have diminished
the quality and reliability of Amtrak service.  In December 1994, Amtrak
announced an aggressive plan to reduce expenses by $430 million annually
by eliminating routes, retiring its oldest cars, cutting staff, and
improving productivity.  Although this plan is an aggressive first step,
it will not solve the railroad's long-term problems.  Amtrak and the
federal government face hard choices.  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 of the
railroad to limiting service to routes that carry the largest number of
passengers in the most cost-effective manner.

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

 REPORTNUM:  T-RCED-95-98
     TITLE:  Amtrak: Deteriorated Financial and Operating Conditions 
             Threaten Long-Term Viability
      DATE:  02/07/95
   SUBJECT:  Railroad transportation operations
             Differential subsidies
             Losses
             Equipment maintenance
             Maintenance costs
             Federal aid to railroads
             Repair costs
             Railroad industry
             Financial management
IDENTIFIER:  Amtrak Northeast Corridor
             
------------------------------------------------------------------------

We regret that electronic text of GAO Testimony is not available at 
this time. 

See the GAO FAQ - Section 2.0 for printed copy ordering information.
The FAQ is automatically retrieved with all WAIS search results or 
can be obtained by sending e-mail to: [email protected]