Amtrak CEO resigns

In case you missed the news, Amtrak's chief executive stepped down on Friday. The railroad did give a reason for the resignation. Alex Kummant was with Amtrak for less than three years, but he leaves with two huge accomplishments: the rail carrier set record annual ridership in the past year and President Bush signed a bill this fall that provides nearly $13 billion in funding for Amtrak.

Here's the story from the Associated Press:

WASHINGTON (AP) — Amtrak Chief Executive Alex Kummant resigned Friday after two years marked by significant growth in ridership and revenue, the national passenger railroad said.

Kummant's resignation is effective immediately, Amtrak spokesman Cliff Black said.

William Crosbie, the railroad's chief operating officer, will serve as acting president and CEO. Amtrak said Kummant will help with a transition to new leadership.

Donna McLean, chairwoman of Amtrak's board, thanked Kummant for his service in a statement released Friday.

"During the past two years, the company experienced exciting economic times, strong ridership and revenue growth, solid profit and loss performance, and the advancement of the Amtrak brand overall," McLean said.

Kummant, hired as president and CEO in 2006, also is credited with overseeing the completion of labor agreements with all Amtrak's union employees. He took over for David Gunn, who was fired in 2005, a year in which Amtrak had to suspend all high-speed Acela service after discovering cracks in some brakes.

Kummant previously served as an executive with Omaha, Neb.-based railroad operator Union Pacific Corp.

Amtrak's board said it will continue to try to increase ridership as fuel costs and other economic concerns send more commuters to trains and buses.

"Current economic conditions highlight the need for us to continue finding ways to drive quality and customer service across the system," said board vice chairman Hunter Biden, the son of Vice President-elect Joe Biden.

Comments

[Ken Ruben]

Thanks to Dana Gabbard for mentioning me in his post above.

Here is the latest on the new appointment of Joseph Boardman (for one year) as Amtrak Presiident and CEO, effective November 26, 2008.

Here is the link with the above information:

http://www.amtrak.com/servlet/ContentServer?pagename=Amtrak/am2Copy/News_Release_Page&c=am2Copy&cid=1178294246438

As already mentioned, this comes soon after the resignation of Mr. Kummant.

---"Ken" Ruben---

[Dana Gabbard]

Ken Ruben, a longtime activist for better transit especially rail (he's a Director of SO.CA.TA and an Associate Director of RailPAC), rought to my attention this commentary by Paul Weyrich on Alex Kummant's abrupt departure the link to which I have posted below. Weyrich is a very conservative activist but pro-rail and very well connected politically, so I am fairly sure he has the real inside scoop on what happened and why. And it bears the ring of truth, because Kummant has a history of changing jobs which would fit with quarreling with your Board and deciding to move on.

http://www.thebulletin.us/site/news.cfm?newsid=20205357&BRD=2737&PAG=461&dept_id=623508&rfi=6

[Pac Man]

Kummant never had much passion for trains. Let's hope the Amtrak Board is smart enough to go after recently retired Metro North President and former Amtrak VP Peter Cannito to take over for Kummant. As they say on the campaign trail, "He will be ready on day one".

[BloggerPal]

Kummant's resignation would certainly be a blow to Amtrak. Rising ridership and increasing revenue were two of his accomplishments which greatly made an impact. Had he continued, he could still contribute more to the industry.