Hotline #56 - October 16, 1998

The fiscal 1999 transportation appropriations bill, H.R.4328, was folded into the omnibus budget bill yesterday. This big bill covers all the appropriations bills that have not yet passed on their own. Congress expects to have a final vote on October 20.

The good news for Amtrak is that the omnibus bill contains its full request of $609 million for capital. The issue of the transit definition for capital has yet to be fully clarified.

The Shelby language requiring subsidy-per-passenger figures to be printed on Amtrak tickets was rejected -- as was similar Lautenberg-Kerry language for aviation and highways.

So far, this is a good result and we thank all of you who helped with your messages to Congress this year.

Amtrak announced changes in its travel agent commission on October 9, effective November 1. Travel agent commissions will be cut from 10% to 5%, but tour incentives will be increased up to 15%. Amtrak said that although revenue and ridership is increasing, the proportion of tickets sold through travel agents fell from 40% in 1995 to 29% in 1998. That happened even though Amtrak had kept its commission at 10%, even after airlines cut theirs to 8% early last year and Amtrak did not impose commission caps like the airlines did. Amtrak said it would take steps to improve service quality and augment alternative avenues of ticket sales such as the 800 number, ticket machines, and the internet.

Former Amtrak President Tom Downs on October 8 was appointed Executive Vice President and Chief Executive Officer of the National Association of Home Builders.

The Altamont Commuter Express commuter rail service begins operation October 19 from Stockton, Cal., to Livermore and San Jose. The service was delayed several months this year because weather problems caused difficulties for station platform construction.

The NARP board is now meeting in San Diego, Cal. Yesterday there was a presentation on Amtrak finances. This morning, there was a talk by Brian Rosenwald, product line manager for the successful Coast Starlight train. Among other things, he discussed plans for automobile service from Seattle to Los Angeles, designed to improve usage when passenger loads on the Coast Starlight are relatively light, such as the winter.

Amtrak West President Gil Mallery spoke at lunch about developments in his area, including Talgo demonstrations this coming January on four routes -- San Francisco-Monterey, Phoenix-Tucson, Bay Area-Reno, and Brigham City-Cedar City, Utah.

Tom Larwin, General Manager of the San Diego Metropolitan Transit Development Board, also spoke.

Still to come are Anne Hoey, Amtrak Vice President for Customer Relations and Revenue; and Warren Weber, Rail Program Manager for Caltrans.