Bloomberg Businessweek - USA (2019-11-25)

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Bloomberg Businessweek November 25, 2019

checkedshirt,bluepants,andgraysneakers.He’sirritated
byhisdetractors,butonlymildlyso.“Mostofthecriticsare
thepeoplewhoyearnforthehalcyondaysoflong-distance
transportation,”hesays,referringtoanerawhenfedora-
wearingtravelerscrossedthecountryinplushtrains,sipping
martinis,perusingthefunnypages,andvisitingtheonboard
barberif theyneededa trim.
Andersonhasnosuchnostalgia,whichis oddconsider-
inghisfamilybackground.HegrewupinTexas,thesonof
anofficeworkerattheAtchison,Topeka& SantaFeRailway.
HisdadtookRichardandthefamilyonrailtripstoChicago
andLosAngeles.“Ididn’tcomeawaywithsomehugelovefor
trains,justlikeI don’thavesomehugeloveforairplanes,”he
says.“They’remachinesthatyoubuilda businessaround.”
Hegota lawdegreeandin 1978 becameanassistantpros-
ecutorinHouston.“Hewasoneofourbesttriallawyers,”
recallsBertGraham,Anderson’sbossatthetime.“Hehada
wayofseeingthroughbullshit.”Afternineyears,Anderson
tooka jobasanattorneyatContinentalAirlines.In 2001
healightedtoNorthwestAirlines,wherehebecameCEO.
Followinga stintinthehealth-carebusiness,hereturnedto
theairlineworldtobeCEOofDeltain2007.Andersontold
reportershehadn’tbeenrecruitedtomergetheairlinewith
Northwestandthenproceededtodoexactlythat.Heshaved
$2billionincosts.
Healso threwanoccasionalelbow. Andersoncam-
paignedunsuccessfullytogettheObamaadministration
torestricttheaccessofDelta’sPersianGulfrivalstothe
Americanmarketbecausehethoughttheywereunfairly
subsidizedbytheirgovernments.Whilerecitinghisgriev-
ancesina 2015CNNinterview,Andersontoldviewersto
rememberwhathappenedinSeptember2001.Manyinthe
aviationindustrywerestunned.QatarAirwaysCEOAkbar
AlBakersaidAndersonhad“nodignity.”Andersonsayshe
wasbeinga fierceadvocateforDeltajustashe’stryingto
beoneforAmtraknow.
Bythetimehedepartedintriumphin2016,Deltawas

HealsowantstoreconfigureAmtrak’slong-distanceroutes
sothey’renolongermoneysops.Hesaysseveral,includ-
ingtheEmpireBuilderandtheCaliforniaZephyr,which
transportpassengersfromChicagotothePacificNorthwest
andNorthernCalifornia,respectively,couldbeturnedinto
luxeexcursionsforrailenthusiastswhowanttocrossthe
ContinentalDivideinstyle.Others,heargues,shouldbebro-
kenupintoshorter,fasterroutesbetweencities,enabling
travelerstobypasscongestedhighwaysandairportswith
theirtime-suckingsecurityrequirements.Amtrakalready
operates 28 suchroutesinstateslikeVirginiaandCalifornia.
Thesestate-supportedlineslost$91millionin2018,but
theyaccountedfor 15 millionpassengertrips—almosthalfof
Amtrak’stotalridership.
Andersonhasupsetanimpressivenumberofpeople.
Amtrak’semployeeunionshavecondemnedhistrimmingof
call-centerandonboardservicepositionsanddemandedhis
ouster.U.S.senatorsfromruralstatesworrythatif hegetshis
way,theirconstituentswillloseservice,paltryasit maybe.
Meanwhile,railenthusiasts,ofwhichtherearemorethana
few,denouncehimasa philistinewhowantstokillAmtrak’s
long-distanceroutes,manyofwhichhaverichhistories,
becausehedoesn’tunderstandorlovetrainsastheydo.
JimMathews,presidentoftheRailPassengersAssociation,
a nationaladvocacyorganizationfortraintravelers,seesan
irony.“HewasbroughtintomakeAmtrakoperateasif it were
a profit-makingcompany,”Mathewssays.“Helookedevery-
bodyintheeyeandsaid,‘OK,areyouguysreadyforthis?
We’regoingtobreaksomestuff.’Andeveryonesaid,‘Yes,
thisis whatwewant.’Andthenhestartedbreakingstuff.And
peoplewerelike,‘Wait,holdup.Stop!What?’”

all,bespectacled,andbalding,Andersonhas
a seniorfaculty member’s cerebral air. On an
August afternoon, he sits at an oval table in
Amtrak’s headquarters near Washington’s

T Union Station, dressed casually in a light blue


OfAmtrak’s 15 long-distance
routes,only the one between
Virginiaand Florida was on
schedulemore than 59% of
thetime

The Northeast Corridor
route between Boston and
Washington, where Amtrak
controls dispatching, had
an operating profit of more
than $500 million last year

Amtraknetworktrackownership
Amtrak-ownedor-leasedtrack(3%oftotal)
BNSF
CSX
NorfolkSouthern
UnionPacific
Other railroad

New
Orleans
Miami

Los Angeles

NewYork

Boston

Cleveland
Washington

Chicago

Kansas
City

Denver

Seattle

Oklahoma
City

Sacramento

Atlanta

Philadelphia
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