Amtrak seeks another billion-dollar bailout
Rail operator Amtrak is seeking an additional bailout of nearly $1.5 billion as it announced plans to cut its workforce by up to 20%.
It bagged more than $1 billion in emergency funding from Congress but needs even more to see it through the Covid-19 crisis.
It says ridership levels have plunged by 95% since travel restrictions were brought in.
It plans to cut about one in five jobs during the coming budget year.
"It is clear we have no choice but to reduce our overhead structure to better align our costs with our revenues," CEO Bill Flynn told employees in a memo, Reuters reported.
"This reduction is necessary to ensure we have a sustainable Amtrak that can continue to make critical investments in our core and long-term growth strategies, while also keeping safety as our top priority."
It now expects full-year revenue to be down by 50%.
It estimates revenue will fall by about $1.6 billion for the year.
Without extra funding it may have to suspend some long distance routes.
Amtrak also plans to reduce operating costs by about $500 million.
The extra funding request is in addition to the $2 billion it gets annually from Congress.
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Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
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