The Way Amtrak Loses Money, We Should Employ The Managers To Run ObamaCrapCare

Amtrak Loses More Than $800 Million on Food Services

The taxpayer-supported passenger railroad Amtrak has once again come under fire for losing millions of dollars on its food and beverage service.

At a House Oversight and Government Reform Committee hearing in November, Amtrak Inspector General Ted Alves testified that the railroad last year lost $72 million providing meals on its 374 daily trains traveling over more than 31,400 miles of track.

The losses on food and beverage services "contribute directly to the need for federal subsidies to support operations," Alves said.

But critics of Amtrak, including Government Operations Subcommittee Chairman John Mica, a Florida Republican, have long been critical of what they claim are wasteful practices at Amtrak.

In one example cited by Alves, Amtrak's Auto Train from Virginia to Florida offers riders complimentary wine and cheese, and three long-distance routes provide free wine and champagne to sleeper-car passengers.

Amtrak employees traveling on free passes also receive free meals on the Auto Train.

"Somehow some of this has to be revised," Mica declared.

Rep. Gerald Connolly, D-Va., countered that most of the losses are on long-distance trains that Congress requires Amtrak to provide, while the cafe cars on the Northeast corridor trains between Boston and Washington break even or make a profit, Bloomberg reported.

Thomas Hall, Amtrak's customer service chief, told the committee that losses have been reduced by 30 percent since 2006.

But Mica said the reported improvements result from transferring some of increased ticket revenue to food service accounts.

"The Amtrak Inspector General has confirmed that Amtrak cooked the books to cover up food service losses," he added.

Alves noted that trains in Maine and Alaska use private contractors for their dining car services. The states pay from $7.75 an hour to $13 an hour with no benefits, while on-board Amtrak employees earn $41.19 including benefits.

The hearing echoed another committee hearing last year disclosing that Amtrak loses about $80 million a year selling food and beverages, and had lost $834 million since 2002 alone.

Alves testified before the House Transportation and Infrastructure Committee in August 2012 that the previous year, Amtrak spent $206 million providing food services but collected only about $121 million, The New York Times reported.

Republican committee staff members showed charts during the hearing revealing that Amtrak charges about $2 for a soft drink while the cost to taxpayers is about $3.40 when labor is included. A $9.50 hamburger costs taxpayers $16.

Mica said the food and beverage service is "an outrageous cost to taxpayers."