Struggling Amtrak fires TTC alumnus David Gunn
WASHINGTON— Amtrak’s board of directors has fired president David Gunn, saying the debt- laden United States rail passenger carrier needs “ a leader with vision and experience.” Gunn came out of a brief retirement in Cape Breton three years ago to take on the Amtrak job after a successful career turning around ailing transit systems in New York City, Washington and — for four years until 1999 — Toronto.
Since 2002, he has struggled to maintain Amtrak service amid a sinking financial picture and a push by the White House and some in Congress to recraft the carrier as a group of regional intercity companies.
“ Amtrak’s future now requires a different type of leader who will aggressively tackle the company’s financial, management and operational challenges,” Amtrak chairman David Laney said in a statement yesterday.
“ The board approved a strategic plan in April that provides a blueprint for a stronger and more sustainable Amtrak. Now we need a leader with vision and experience to get the job done.” John Micah, a Republican congressman from Florida, said Gunn was fired because of a clash over the board’s vote in September to authorize splitting off the Northeast Corridor, an idea backed by the administration of U. S. President George W. Bush. The corridor accounts for the largest share of the railway’s ridership.
“ David Gunn bucked that idea, so that was the straw that broke the camel’s back,” said Micah. “ He’s a very capable operational manager, but he wasn’t willing to go along with the dramatic changes that need to be made.’’ Gunn, who returned to Toronto on a six-month contract in 2001 to help make the city’s bureaucracy more efficient, could not be reached for comment yesterday.
U. S. Senator Charles Schumer, a Democrat from New York who has fought against a Bush administration effort to end subsidies for the struggling passenger rail service, praised Gunn as “ a brilliant manager.’’ Schummer called Gunn’s removal “ a crushing blow to Amtrak’s hopes for success and reform.’’
Other politicians said Gunn had become a roadblock to overhauling national rail service.
“ I am hopeful that new leadership can open the door for Amtrak to work closely with Congress to achieve meaningful reforms,” said congressman John Sweeney, a New York Republican. Amtrak has never made money in 34 years of operation. An operating loss of more than $550 million ( U. S.) was expected for the fiscal year that ended Sept. 30. The railroad has debt topping $3.5 billion. The White House has called for an end to subsidies for Amtrak, but the House of Representatives has approved an appropriation of nearly $ 1.2 billion for this budget year.