Posts Tagged ‘Charles “Wick” Moorman’

Amtrak Set Revenue Record in November

December 15, 2017

Amtrak said this week that it garnered record revenue in November of $204.7 million in system-wide adjusted ticket revenue, the best month in the company’s history.

In a news release, Amtrak said that Thanksgiving continued to be its busiest week of the year with a record 777,897 passengers riding its trains and generating $61 million in gross ticket revenue.

“More customers are choosing Amtrak as it is simply the smarter way to travel. We look forward to providing the Amtrak experience to more customers over the December holidays,” said Amtrak Co-CEO Charles “Wick” Moorman in a statement.

Amtrak said it is encouraging passengers to make their reservations now for Christmas season travel because it expects trains to handle heavy crowds this month.

Passengers can save up to 25 percent on tickets, as 7-day and 14-day advance purchase saver fares are still available, the carrier said.

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Moorman to Step Down at Amtrak on Dec. 31

December 15, 2017

Amtrak co-CEO Charles “Wick” Moorman is about at the end of the line as the head of the rail passenger carrier.

Moorman

Moorman, who came on board as CEO in September 2016 after a long career at Norfolk Southern that included serving as the company’s CEO, will leave Amtrak on Dec. 31. He plans to continue to serve the carrier as a senior adviser.

When he agreed to take the Amtrak job, Moorman made it clear he would only serve as a transitional CEO and assist the process of finding his replacement.

That led the Amtrak board of directors last June to hire Richard Anderson, a former Delta Air Lines CEO. Anderson and Moorman have held the co-CEO titles since then.

“I have greatly enjoyed my time at Amtrak, and firmly believe that the company is well-positioned for the future,” Moorman said in a statement. “I look forward to continuing my work with Richard and the entire Amtrak team to further advance passenger rail in this country.”

When Moorman was hired, he was assigned the responsibility of focusing on improving operations, streamlining Amtrak’s organizational structure, and finding his successor.

Moorman has had his share of challenges, including an emergency program to rebuild track at New York Penn Station and improving the company’s safety culture.

The latter was described as “broken” by a National Transportation Safety Board report on an accident that left two Amtrak maintenance workers dead when they were struck by a train at Chester, Pennsylvania.

Amtrak has also shown concepts for high-speed equipment slated to replace Acela train sets in the Northeast Corridor and put into service new locomotives built by Siemens.

“The board is grateful for Wick’s significant contributions since he joined the company, and we are pleased that he is continuing to serve as a senior adviser,” said Tony Coscia, chairman of the Amtrak board.

Moorman Looks Back on his Amtrak Tenure

December 5, 2017

You could say that Amtrak co-CEO Charles “Wick” Moorman is a big fan of his fellow CEO Richard Anderson.

Moorman

“We really hit a home run in that Richard Anderson agreed to come on board,” Moorman said during a speech last week at the RailTrends 2017 conference.

Moorman cited Anderson’s leadership skills, saying Amtrak needs his aggressive nature.

During his presentation, Moorman also said Amtrak has made progress in such areas as safety, maintenance and customer service.

The former CEO of Norfolk Southern also singled out the passenger carrier’s new chief financial officer, William Feidt, who Moorman said has brought discipline to Amtrak that was lacking.

Moorman said Chief Marketing Officer Tim Griffin understands marketing a passenger service as well as revenue and yield management. “We have a first-rate management team now,” Moorman said.

Griffin and Anderson have both worked in the airline industry with Anderson having been a former CEO at Delta Air Lines.

Moorman, who will leave Amtrak soon, said that although the passenger carrier is developing a better safety culture, it continues to trail Class I railroads in those efforts.

He also said that Amtrak has a spotty record in delivering on capital projects

Amtrak needs to be a better steward of its assets, including its rolling stock and facilities.

“Shabby chic can be fashionable, but not on a passenger train or in a train station,” Moorman said.

Pointing out that much of Amtrak’s equipment had a worn-out feel to it, Moorman directed the interiors of Amfleet I cars to be refurbished after he learned that it would be relatively inexpensive.

In time, the refurbishment program will be extended to cars used on long-distance trains.

One lesson that Moorman said he learned from Anderson from the airline industry is to consistently upgrade the interiors that passengers see.

“You don’t want to know how many 40-year-old airplanes you’ve flown,” Moorman said.

In fiscal year 2017, which ended on Sept. 30, Amtrak reduced its operating loss to just under $200 million, which covers 95 percent of its expenses. Moorman said the goal is to reduce the operating loss to zero.

It will seek to do that by bumping up ridership and revenue. However, he said that will be a challenge to achieve if the current less than desirable on-time performance means that Amtrak service is unreliable.

Moorman said a two- or three-hour delay for a freight train doesn’t mean much, but is unacceptable for a passenger train.

He said Amtrak and its host freight railroads need to work more closely to reduce delays while the freight railroads need to realize that to a certain extent the public’s perception of American railroading is shaped by Amtrak and the level of service it provides.

Some Doubt Private Investment Will Help Rails

October 7, 2017

Private sector investment in railroad projects is unlikely, a congressional committee was told this week.

The comments were made at hearing held by the U.S. House Transportation and Infrastructure subcommittee hearing on rail infrastructure on a proposed Trump administration infrastructure renewal plan.

The Trump plan would rely on private investment as well as public funding.

The witnesses at the hearing said that the federal and state governments can be expected to play a role in sustaining and expanding the nation’s rail network, but the private sector is unlikely to be much of a player when it comes to railroad investment.

“What you’re talking about clearly goes beyond what the private sector at this point is prepared to do,” said Ed Hamberger, president of the Association of American Railroads.

In particular, Hamberger referenced the capital needs of Amtrak. The carrier’s co-CEO, Charles “Wick” Moorman had told the committee that the critical, huge infrastructure projects that Amtrak faces will require federal investment.

Without that, Moorman said, the system runs out. “We can do a lot of work on state of good repair, we can improve the way we spend money, but it’s going to take a lot of federal investment,” he said.

“I think Mr. Moorman’s needs go far beyond what the private sector can do,” Hamberger said.

One news report said that Democrats on the subcommittee pushed for public funding of intrastructure projects while Republicans members remained silent about that.

Even President Trump has reportedly expressed doubt about the scope of the private sector’s role in infrastructure rebuilding.

Trump reported said during a closed meeting of the House Ways and Means Committee that public-private partnerships were not the solution for repairing the nation’s roads, bridges, and ports.

The Trump administration has been talking investing $200 billion in federal fund to leverage $800 billion of private investment. However, details about that plan have yet to be announced.

“I understand that the private sector has a role, the states have a role, but I think the federal government has to have a bigger role,” said U.S. Rep. Albio Sires, D-N.J. “Without the support of the federal government, I don’t think these projects can be done. Does anyone here believe that the private sector is the sole answer to this? If you do, please tell me, because I don’t believe this.”

Amtrak to Give Interior of Cars a Facelift

September 8, 2017

An Amtrak rendering of what the interiors of its Amfleet coaches will look like after being refurbished.

Amtrak said this week that it plans to overhaul the interiors of the cars used in corridor service in the Midwest and Northeast.

In a news release, Amtrak said the cars will receive new seat cushions, carpeting, LED lighting, flooring and upgraded wainscoting and bulkheads.

Business class cars will receive new curtains while café cars will get redesigned galleys. Amtrak said it plans to spend more than $16 million on the renovations.

Much of the work will affect Amtrak’s Amfleet I cars. That fleet includes more than 450 coaches.

It will done in stages and take nine months to complete. This fall Amtrak plans to install business class carpets and cushions, coach class carpets and cushions, LED lighting and upgrade the restrooms.

During the winter, work will continue on installation of carpets, cushions, and LED lighting, plus the installation of business class curtains, refreshed wainscoting and bulkheads, and renovating the café cars.

The project is expected to wrap up during next spring and summer.

“Amtrak is committed to offering a premium customer experience and these modernized interior features are a marked improvement in the overall ambience on board,” said co-Amtrak CEO Wick Moorman. “The upgrades offer customers what they told us they want more of during their travels – a more comfortable, refreshed look and feel.”

Moorman Upbeat on Passenger Rail Future

July 18, 2017

Amtrak President Charles “Wick” Moorman gave an upbeat assessment of the future of passenger rail even as he acknowledged that the passenger carrier faces challenges fixing decaying infrastructure in the Northeast Corridor.

Speaking to the National Press Club in Washington, Moorman said Amtrak’s need for federal funding was no excuse for not operating “like a great company.”

Moorman

Nonetheless, Moorman said that getting pressure from government officials and tight budgetary resources have taken their toll.

He said that in the 1990s and 2000s Amtrak lost sight of its customers as a result. As an example he cited carpet cleaning.

Amtrak saved $1 million by not shampooing the carpets in its passenger cars as often, but passengers noticed the dirty carpets.

“That’s not the experience we want to create for our customers,” he said.
Providing a better customer experience has been one of four focuses that Moorman has brought to Amtrak after becoming its president last year.

“The customer experience is ticketing, the station, our employee interactions, and our equipment,” he said.

The equipment used by Amtrak is, in Moorman’s words, starting to look “stale,” but the carrier has taken steps to improve it. “It’s old, but that doesn’t mean it can’t be good,” he said.

Moorman said rail passenger transportation in general is not a particularly good business model.

The creators of Amtrak chartered it as a for-profit corporation even though they knew it was not a good business model.

However, Moorman said, they sold it to President Richard Nixon and the Congress at the time as a concept of “create this and [it] will become profitable.”

In essence, Moorman said Amtrak is a government contractor that unlike other contractors can’t always present to government officials a bill that factors in the costs of doing business plus a profit to benefit shareholders.

“We rely on what are in effect user fees – passenger fares,” he said. “And because the marketplace doesn’t sustain the passenger fares we need to make that profit, we ask the government to make up the difference.”

Among Amtrak’s many challenges Moorman said the one that worries him the most is the aging Northeast Corridor infrastructure.

He said the NEC has eight major bridges and only one is younger than 100 years old. The B&P Tunnel in Baltimore is 127 years old and well past its “sell-by date.”

Moorman expressed confidence that the idea of having a national rail passenger network is taking hold and predicted the development of more corridors offering rail passenger service between urban areas.

He also circled back to the need to provide good customer service.

“For 46 years, a lot of people [at Amtrak] were there trying to keep the flame alive, understanding that someday the world would come to the point where people started to say, ‘We really need to have passenger rail as an option.’ I think that day has come,” Moorman said.

“The better we run Amtrak, the better we deliver on projects, the more people understand how good our company is, the easier every funding conversation is,” he said.

In a related note, Moorman said disruptions at New York’s Penn Station may extend into the fall.

He told the New York Post that Amtrak has the ability to finish the remaining work at Penn Station with subsequent weekend outages extending beyond the planned July to early September work curfew.

“We’ve done an exceptional and extraordinary amount of planning on the material side and we know it all fits, and we have a lot of skilled people,” he said.

After those repairs are concluded, Moorman said Amtrak will need to to schedule signal and power system repairs at a later date.

Amtrak Eyes Reducing Seat Pitch

July 14, 2017

Amtrak may take a page out of the airlines playbook and try to squeeze more passengers into its coaches.

Co-CEO Charles “Wick” Moorman said this week that Amtrak is studying the creation of a new economy class that would have less room between seats, known as seat pitch.

“We are looking at doing some creative things in terms of creating an economy class,” Moorman told the National Press Club in Washington.

For years the airlines have been reducing seat pitch in an effort to increase seating and therefore increase the amount of revenue earned per flight.

Moorman said the rail carrier has not decided whether to implement the idea, but acknowledged “there will be some other things that just don’t make it quite as comfortable.”

For years, Amtrak has touted how it offers more leg room than the airlines and that its trains do not have a center seat as do many jetliners.

“We compete very well with the airlines,” Moorman said, adding that travelers in the New York-Washington market who take Amtrak avoid New York’s LaGuardia Airport and lengthy airport security lines.

The tighter seat proposal was revealed on the same day that Moorman began sharing the CEO post with Richard Anderson, a former Delta Air Lines head.

Observers Give Their Take on New Amtrak CEO

June 29, 2017

So who is this former airline executive that Amtrak has chosen to take over as its CEO later this year when Charles “Wick” Moorman retires?

Richard Anderson

Richard Anderson was the head of Delta Air Lines, but he also at one time served as a prosecutor and the vice president of an insurance company, United Health.

His father, Hale, worked for the Atchison, Topeka & Santa Fe in Texas and the family moved multiple times as the elder Anderson held office jobs at posts from Galveston to Dallas and Amarillo.

When he was in college, the younger Anderson’s parents died of cancer and he subsequently had to raise his two younger sisters as he worked to earn college tuition money.

After earning his law degree, Anderson worked in Texas for nearly a decade as a prosecutor.

His entry into the airline industry began in the legal department of Houston-based Continental Airlines.

He would later join Northwest Airlines and became its CEO three years later. As Delta Air Lines was emerging from bankruptcy in 2007, its board of directors asked Anderson to become its CEO, which meant that he succeeded Gerald Grinstein, a former CEO of the Burlington Northern Railroad.

“Richard has a hands-on, roll-up-your-sleeves, let-me-see-how-this-thing-really-works kind of approach,” John Dasburg, Northwest’s former president, told USA Today in 2008.

During his time at Delta, Anderson sometimes sought unconventional solutions to solve problems.

For example, in an effort to cut fuel costs, Delta purchased an oil refinery near Philadelphia in 2012.

Industry reaction to Anderson being named co-CEO of Amtrak – Moorman won’t be retiring until late December – has been mostly positive.

He received unqualified endorsements from Linda Bauer Darr, president of the American Short Line and Regional Rail Road Association, and from Ed Hamberger, the president of the Association of American Railroads.

Jim Mathews, head of the National Association of Railroad Passengers lauded Anderson’s transportation experience.

“NARP is very pleased Amtrak is making the sensible move of bringing in an executive with strong management experience in a customer-service oriented transportation company,” Mathews said.

Former NARP executive director Ross Capon said the fact that Moorman will be Amtrak’s co-CEO through December shows the two men will likely have a good working relationship and that Anderson will be able to learn from Moorman.

Not all advocacy groups were enthusiastic about Anderson’s appointment.

Charles Leocha, chairman of Travelers United and an airline consumer advocate, said in an interview with Trains magazine that Anderson is “a real charger” who “has not been a friend of consumers, but ran an efficient airline as consolidation was completed . . .”

Richard Rudolph, the president of the Rail Users Network, said Amtrak needs someone who knows railroads, knows how to run a company and can stand up against Congress and President Donald Trump.

Also expressing skepticism was former Amtrak President and CEO David Gunn.

“If he can’t coax people at Amtrak who know how to run a railroad out of their fox holes, he’s doomed,” Gunn said in an interview with Trains. “And you have to convince them you have a plan that makes sense operationally and is not driven by politics.”

Gunn said the best hope is that Anderson has some knowledge of railroad operations.”

Jackson McQuigg, a railroad historian and passenger advocate based in Atlanta, told Trains that he sees in Anderson a man with a demeanor similar to that of W. Graham Claytor Jr. between 1982 and 1993.

“He had a stellar reputation in Atlanta and cared about the city and its history,” McQuigg told Trains.

While at Delta and Northwest, McQuigg noted, Anderson had a reputation for being a tough guy who wasn’t afraid to mix it up with the airline unions.

“Maybe that bunch in the White House will listen to him,” McQuigg said of Anderson. “It will be interesting to see if that happens or if Anderson presides over dismemberment instead. All I know is that the long-distance trains had better be preserved or the whole thing will go up in political flames.”

Richard Anderson to become Co-CEO on July 12, Wick Moorman Plans to Retire December 31

June 26, 2017

Amtrak will be getting a co-president and CEO next month. Charles “Wick” Moorman will be joined by Richard Anderson, who has 25 years of experience in the airline industry.

This arrangement will continue until Dec. 31, when Moorman plans to step down from his position at Amtrak but continue as an adviser to the company.

The announcement was made in an internal memorandum sent to Amtrak employees and confirmed by a statement issued by Amtrak.

In the memo to employees, Moorman noted that he promised his wife that he time at Amtrak would be short.

Moorman said he said he would stay at Amtrak only as long it took to achieve three goals: Making the company more efficient, developing a stronger safety culture and working with the board of directors to find an executive to lead the railroad long term.

Anderson is a former chief executive at Delta Air Lines and Northwest Airlines, the latter having been acquired by the former.

“Richard has a proven track record of driving growth while enhancing the customer experience,” Moorman said. “What I really admire about Richard is he faces difficult challenges head-on. He has helped companies navigate bankruptcy, a recession, mergers and acquisitions, and 9/11. In total, Richard is a leader with the strategic vision and tactical experience necessary to run a railroad that benefits our partners, our customers and our employees.”

The statement noted that Anderson’s father worked for the Santa Fe.

Anderson, 62, most recently was executive chairman of the Delta Air Lines board of directors after serving as the airline’s CEO from 2007 to 2016. He was executive vice president at United Healthcare from  2004 to 2007 and CEO of Northwest Airlines from 2001 to 2004.

He also served in the legal division at Continental Airlines and was a former county prosecutor.

“It is an honor to join Amtrak at a time when passenger rail service is growing in importance in America. I look forward to working  alongside Amtrak’s dedicated employees to continue the improvements  begun by Wick,” Anderson said in a statement.

Anderson earned a Bachelor of Arts degree at the University of Houston at Clear Lake City and a Juris Doctorate at South Texas College of Law. He is a native of Galveston, Texas.

Moorman Stumps to Save Long-Distance Trains

June 14, 2017

Amtrak President Charles “Wick” Moorman recently told Congress that eliminating funding for Amtrak’s long-distance trains in the federal fiscal year 2018 budget would cost more money than it would save.

Moorman

In a letter that accompanied Amtrak’s budget, Moorman said ending the funding would cost $423 million more than keeping it.

“The Administration’s Fiscal Year 2018 budget request for the U.S. Department of Transportation proposes the elimination of Federal funding for Amtrak’s long distance services. Enactment of such a proposal would drastically shrink the scope of our network, could cause major disruptions in existing services, and increase costs for the remaining services across the Amtrak system,” Moorman wrote. “Amtrak’s initial projection is that eliminating long distance services would result in an additional cost of $423 million in FY 2018 alone, requiring more funding from Congress and our partners rather than less.”

The letter sought to highlight Amtrak’s successes last year.

“Amtrak reported strong audited financial results for the fiscal year which ended on Sep. 30, 2016, including an all-time ticket revenue record of $2.14 billion,” Moorman said. “The increased ticket revenue was fueled by a record 31.3 million passengers on America’s Railroad – nearly 400,000 more than the previous year. This is the sixth straight year Amtrak carried more than 30 million customers.

“The company covered 94 percent of its operating costs with ticket sales and other revenues, up from 92 percent the year before – a world-class performance for a passenger-carrying railroad. Thanks in part to our strong performance, Amtrak was also able to make a net reduction in long-term debt of $69.2 million.”

As for Amtrak’s ongoing needs, Moorman said Amtrak needs funding to replace movable bridges that are more than 100 years old and money to pay for a backlog of crucial state-of-good-repair work in the Northeast Corridor estimated to cost $38 billion to complete.

Moorman said the Superliner equipment used by Amtrak’s long-distance trains averages more than 200,000 miles per car, per year, and the age of the fleet is nearly 40 years.