Vol. 2, No. 34 - November 09, 2005
- Former Amtrak President and CEO David Gunn has left the building. Today, the Amtrak Board of Directors announced that Mr. Gunn has been released by the board and his services are no longer required.
It is important to note all of the good things Mr. Gunn accomplished during his stewardship as head of Amtrak. In May of 2002 he walked into an almost impossible situation, cleaning up the many problems left behind by George Warrington, his immediate predecessor. As said before, it is highly doubtful that anyone, including the board of directors at that time, knew just how big of a mess things were at Amtrak. Mr. Gunn arrived, rolled up his sleeves, and delved into the morass. Many of his accomplishments will never be known, because they were internal things that kept the company going.
As time progressed, the board realized that another leader would best serve Amtrak. This does not diminish Mr. Gunn’s accomplishments, but merely points out that different people are best suited for different goals.
We thank Mr. Gunn for his initial hard work and dedication, and wish him well in the future.
- November 9, 2005
A Letter From Amtrak Chairman David Laney to Amtrak Employees
Dear Amtrak Employees:
The Amtrak Board of Directors announced today the release of David Gunn, its President and Chief Executive Officer for the past three years. The Board has named Chief Engineer David Hughes as Acting President and CEO to run the railroad as we conduct a national search for Amtrak’s next leader.
Together with your hard work, David Gunn made important operational improvements during his tenure. Now, as we look to the future our priorities are changing and Amtrak requires a different type of leader who will more aggressively tackle the company’s significant financial, management and operational challenges.
Earlier this year, Amtrak’s Board and management prepared a blueprint for comprehensive reform as part of our fiscal 2006 grant request to the Congress. The good news in this strategic plan is that we can improve Amtrak, upgrade service in the vital Northeast Corridor, expand rail services in densely populated and increasingly congested corridors across the country, and bring more economic discipline to Amtrak’s long distance services.
These reforms and others envisioned will require fundamental change, hard work and consistent support. They also require a leader who has the organizational, financial and management skills needed to help transform Amtrak into a more sustainable and high performing company.
Both chambers of Congress have passed 2006 appropriations for Amtrak that recognize the importance of an effective intercity rail travel system, while demanding much needed reform. The Board is committed to pursuing these reforms, and to working closely with the Congress, the Administration, state governments and other essential partners to make sure we get this right, and get it done.
Putting Amtrak and intercity passenger rail service on a more stable and stronger course is our highest priority and in all of our interests. We look forward to working together in the critical months ahead.
Sincerely,
David M. Laney, Esq. Chairman
- Those who are students of history may note that when Tom Downs left as Amtrak president that George Warrington was appointed the Acting President, and later was given the job permanently. At the time, Mr. Warrington was running the Northeast Corridor, and the Wondertrain Acela project was deep into development.
David Hughes, today’s Acting President, is Amtrak’s Chief Engineer, mostly in charge of the NEC infrastructure.
Naturally, some will jump to the conclusion that Mr. Hughes will automatically become the next permanent president of Amtrak. That seems to be wrong.
Amtrak Chairman David Laney’s letter to Amtrak employees (see above) specifically states that the board is seeking someone with skills to aggressively tackle the company’s significant financial, management, and operational challenges. Someone who is a civil engineer probably does not fit this job description. Mr. Hughes, however, would seem to be the ideal candidate to run the NEC infrastructure subsidiary when that becomes reality, probably in 2006.
In the meantime, we all wish Mr. Hughes success in his new endeavor. It is never easy stepping into someone else’s shoes in a time of controversy and keeping things running while a permanent candidate is sought for the top job.
- The political speculation is that the 165 page GAO Amtrak report released last week is the proverbial straw the broke the proverbial camel’s back for Mr. Gunn. While many did not comprehend the strength of the report, and others tried to downplay it while wrongly protecting Amtrak, apparently those in power thought differently, rightly so.
Often the management and financial aspects of a company are considered dry and boring by many, especially when it comes to railroads. People would much rather talk about trains, terminals, and schedules. But, the reality of the world is that management and financial issues will always rule the day, dry and boring as they may be. Only when the management and financial issues are under control do the other issues such as trains, terminals, and schedules make a difference.
The present Amtrak Board of Directors is an astute group of gentlemen who understand what it takes to run a huge business like Amtrak. They understand that it takes team work, harmony with management staff, and confidence by the public and bankers (in this case, Congress and the US DOT) to make an organization like Amtrak succeed.
- Here’s hoping one very important change will immediately take place at Amtrak. It’s time to stop the constant carping and poor-mouthing about Amtrak and that it’s on the brink of either bankruptcy, shutting down, or oblivion. This does nothing to improve the company’s standing with present and future passengers, the powers-that-be in Washington, or the news media. This type of talk accomplishes nothing except to run off present and future passengers who fear that if they purchase a ticket in advance the company will disappear before they can use it.
The new, immediate mantra of Amtrak - and its supporters - needs to be that the company is undergoing fundamental change for the better, improvements are underway, and performance in every area is getting better. People are tired of hearing about this struggling dinosaur with just moments to live. It’s time for some positive thinking.