While noting the challenges in the under-invested railways, Amtrak’s chairman Anthony Coscia was enthused to have Anderson at the top given his record at Delta Air Lines.
On Monday, Amtrak named Richard Anderson, Delta Air Lines’ former chief to lead it rail carrier as it embarks on a major renovation of its busiest U.S. hub.
Anderson was instrumental in Delta’s growth as the world’s largest airline by market value. He retired from the company in May 2016. He will now join Amtrak as its president and co-CEO from July 12, just 2 days after Amtrak launches its rebuilding program at New York City’s Pennsylvania Station.
He will share the top post with Wick Moorman upto December 31 after which Moorman will become an advisor to the company, said Amtrak in a statement.
Earlier in May, the Trump administration had proposed ending a $630 million subsidy program for Amtrak to operate its long distance train service.
For the year ending September 30, Amtrak posted its highest ever revenue of $3.2 billion and hauled a record 31.3 million passengers, with more than one-third of them in the Northeast Corridor. It reported its smallest ever unaudited operating loss of $227 million since 1973.
Amtrak competes with airlines for passengers, especially on busy routes between Boston and Washington.
During Anderson’s tenure in Delta, he not only oversaw the company’s merger with Northwest Airlines in 2008 he also ensured that Delta outpaced its peers in on-time performance, which saw it rise to in ranks in top business markets including New York.
Anthony Coscia, Amtrak’s Chairman was all praise for Anderson who in his opinion transformed Delta from a bankrupt airline, from 2005 to 2007, “to one that was considered the industry standard for customer service.”
Coscia also noted the challenge of serving passengers in the railway industry since it is one of those categories which have been underinvested for decades.
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