As Amtrak's Congress-imposed deadline for self-sufficiency loomed in 2001, and the flow of operating capital became tight for the company, Amtrak's top level managers began in July 2001 an open dialogue with the rank-and-file employees, discussing Amtrak's future, the factors that effect the company's bottom line, and how each employee can work to improve it. As Amtrak faced the possibility of a systemwide shutdown and complete insolvency in June 2002, Amtrak President David L. Gunn, who had replaced George Warrington one month previous, began a long series of letters and memos. The series is still a work in progress, as Amtrak's financial situation continues to change rapidly in 2002, sometimes on a daily basis. As more letters are composed and sent to Amtrak's employees, we will post them to this page.

The following letters were written by Amtrak President David L. Gunn, former Amtrak President George Warrington, Amtrak's former Chief Operating Officer (previously Executive Vice President of Operations), E. Stan Bagley, Jr., Amtrak's Vice President of Operations, Ed Walker, and Amtrak's former Senior Vice President of the Northeast Corridor, Jim Weinstein.

Please select a letter from the following list:
• David L. Gunn, 09/16/2002
• David L. Gunn, 09/12/2002
• David L. Gunn, 08/20/2002
• David L. Gunn, 08/14/2002
• David L. Gunn, 07/19/2002
• David L. Gunn, 06/28/2002
• David L. Gunn, 06/26/2002
• David L. Gunn, 06/25/2002
• David L. Gunn, 06/24/2002
• David L. Gunn, 06/21/2002
• David L. Gunn, 06/05/2002
• E. Stan Bagley, Jr., 07/30/2002
• E. Stan Bagley, Jr., 07/19/2002
• E. Stan Bagley, Jr., 07/19/2002
• E. Stan Bagley, Jr., 07/15/2002
• E. Stan Bagley, Jr., 02/13/2002
• E. Stan Bagley, Jr., 08/14/2001
• Ed Walker, 08/05/2002
• Jim Weinstein, 06/04/2002
• George Warrington, 07/19/2001
• George Warrington, 07/13/2001

September 12, 2002

Dear Amtrak Co-Workers,

Let me take a moment to tell you the latest on Acela Express.

We have gradually increased the number of trainsets in operation to the point that we have 12 in daily revenue service, where we used to have 15. This means we are covering 40 of the 50 usual Acela departures from Boston, New York and Washington on the weekdays, and most of the other 10 departures are being filled in with Metroliner equipment.

I hope that we'll continue to maintain this level of service, but we'll see how it goes day by day. We are also continuing to work with Bombardier on a permanent fix, and I will let you know of any developments as they happen on that front.

As you could bet, having a lot of these trains out of service in August hurt our revenue. The net impact was that we earned about $9 million less than we would have, had nothing ever happened. Our ridership loss from Acela, as a result of the problems, was about 76,000 for the month. (Our year-to-date ridership is off one-half percent from last year at 21.7 million, and our ticket revenue is up 9 percent at $1.2 billion).

We still have a lot of work to do, but I'm proud of the way everyone, including Bombardier, is working together to get the job done. Thank you.

Respectfully,
David L. Gunn

August 20, 2002

Dear Amtrak Co-workers,

Let me bring you up to date on where we stand with the Acela Express trainsets. Yesterday we ran nine trainsets and 30 departures out of Washington, New York and Boston. Today we planned to run 30 departures with eight trainsets. This morning, we took four of these out of service, because our inspections, using a dye penetrant, showed that the side sills to which the bracket is attached had some minute, hairline cracks. Like those on the bracket, these cracks appear to be stress-related, but these are mostly invisible to the naked eye; thus the dye-penetrant inspections. The repairs are done by welding and grinding. Inspections and repairs are continuing, and I will keep you informed.

Sincerely,
David L. Gunn

August 14, 2002

Dear Amtrak Co-workers:

As you may already know, late Monday night we made the decision to temporarily remove all of our Acela Express trains from service. This began when, during a 92-day check of a trainset Monday afternoon in Boston, our maintenance engineers discovered a fracture to one of the yaw damper brackets on one of the two locomotives. For those of you not in mechanical, this bracket attaches a kind of shock absorber to the frame and its purpose is to reduce truck hunting.

At this point, about half the fleet has been inspected, and two trainsets have been found not to have the defect. They will be returned to service today under a strict inspection regime. The other trainsets await a fix from Bombardier.

After meeting yesterday with their people, I got a reasonable assurance that they will propose a temporary fix today. If this satisfies us, and the safety people at the FRA, the trains may only be out for a few more days. But I don't want to raise expectations here. The problem is serious and will require a permanent solution. We are not out of the woods by any measure.

I owe a debt of thanks, first to the crew-our employees-who found this problem; and second, to those employees who've worked around the clock on inspections and making adjustments to the schedule. Because of their work, we did a very good job of accommodating about 40,000 of our daily riders between Boston and New York yesterday.

We're going to have to keep up the good work today and through the week. I know it's difficult, but I am counting on you. I will keep you informed of any developments as they occur over the next several days.

Sincerely,
David L. Gunn

July 19, 2002

Dear Amtrak Co-Workers:

It appears we are meeting with some success regarding securing funding for the remainder of FY02.

A supplemental funding of $205 million, which should be approved next week, would allow us to operate until October. Yet our struggle for survival has just begun. This funding merely allows us to live to fight another day.

In order to secure adequate funding over the long term, we must develop a reputation for sound management and precise operations.

The company's FY03 operating and capital budgets must clearly show that we are dealing with predictable issues of efficiency and productivity. We have a reputation on Capitol Hill that we must overcome. Our current reputation is that we are inefficient and not worthy of support. This reputation is what drives and strengthens those seeking to destroy us totally or gives credence to the myth of privatization. First, we must come to work every day we are scheduled, then, we must work hard each and every day.

I have made a commitment to you to fight to keep Amtrak whole. In order to do this, we will be seeking reductions in staffing levels and more efficient work practices for management and hourly employees alike.

The process of change will be painful and difficult at times, but absolutely necessary if we are to succeed in securing adequate funding for the next fiscal year and beyond.

In many respects, the $205 million supplemental appropriation is being given to us because the members of Congress are willing to give us one last chance. I have met with many of you in the stations and on the trains I ride. I know all of us want Amtrak to succeed and with hard work and focus, we will be successful.

David L. Gunn

PS: You probably heard that several employees were recently caught sleeping on the job. I will not tolerate this conduct and you should not either. This kind of behavior jeopardizes our jobs and everything we are fighting for.

June 28, 2002

Dear Amtrak Co-workers:

After much work, we reached a final agreement with the Department of Transportation tonight that resolves our short-term financial problem. As I told you Wednesday when the tentative agreement was reached, we will get an immediate loan of about $100 million and then we will together ask for Congressional action on the balance of what we need.

The conditions I mentioned on Wednesday have all been worked out, and I can assure you that none are onerous. You know I've already committed myself to improved efficiency, better financial accountability and transparency, and monthly financial reporting to Congress and the DOT. I believe that with hard work and your help we will succeed. I'll share the rest of the conditions with you on Monday, when I'll go back to doing what I like best - running the railroad.

As I said the other day, thank you for staying focused on your work and keeping safety as your top priority.

Sincerely,
David L. Gunn

June 26, 2002

An Update from Amtrak president David Gunn:
Amtrak Reaches Tentative Agreement with DOT

Dear Amtrak Co-Workers:

We reached a tentative agreement last night with the Department of Transportation to resolve our short-term financial problem. The details need to be worked out, but if we're successful, and I hope we are, there will be no shutdown of service this summer.

The DOT will give us an immediate loan of about $100 million. For the balance of what we need, the Bush Administration and Amtrak will seek Congressional action.

A number of conditions to this plan need to be worked out, but many are things you know I've already stated, like better financial accountability and transparency, and monthly fiscal reporting to Congress and the DOT. While you may have heard there will be a wage freeze, it will only apply to senior management.

We hope to finish the agreement in the next day or two so I can go back to doing what I enjoy best - running the railroad - and you don't have to keep reading these letters form me every day. You have continued to stay focused on your jobs, make safe operations your top priority, and I thank you for that.

Sincerely,
David L. Gunn

P.S.: I will send you the agreement when it is done.

June 25, 2002

Dear Co-Workers

We still don't have a loan, a loan guarantee, or an appropriation to solve our problem.

Let me tell you where we stand. Yesterday, the Board of Directors and I met with Secretary Mineta and he expressed confidence that a shutdown can be averted. That is a welcome sign of support.

All the members of the Board are continuing to work hard on resolving the problem. I am especially thankful that Chairman John Robert Smith is remaining in Washington to help us as we work with Congress and the Administration to solve the problem.

Sincerely,
David L. Gunn

P.S.: Did you see in the news yesterday that United Airlines has asked the federal government for a nearly $2 billion loan guarantee?

Dear Co-workers,

June 24, 2002

Since I wrote to you on Friday morning, there have been some developments on our current situation.

I spoke to Transportation Secretary Mineta over the weekend. He asked our Board of Directors and me to come over to the Department of Transportation this afternoon to work with him so that we could all avoid a shutdown. I welcome his active involvement and hope you will too.

His comment this weekend that he does not want a shutdown was an encouraging sign that the Administration really wants to avert this from happening. We are looking forward to the meeting, which will be at 3:00 p.m. today.

Finally, I want to dispel any notion that I caused in public comments last week that I can just shut down our operations and happily return to Cape Breton. You can depend on me to do everything possible to keep our operations going - that's my commitment to you. I did not take this job to shut down our railroad. I will provide you with an update tomorrow.

Sincerely,
David L. Gunn

June 21, 2002

A Message from Amtrak President David Gunn about Amtrak's Loan Status

Dear Co-Workers,

This is a report on our financial problems. We have not obtained a loan as of this date. We are working very hard on three options:

1: Dept. of Transportation (DOT) loan guarantee.
2: Congressional action authorizing DOT to issue a loan guarantee.
3: A bridge appropriation of $200 million.

Time is running out. When Congress adjourns next week, options two and three will disappear.

You will hear mention of bankruptcy and cessation of service. These are real possibilities. I still believe wisdom will prevail and we will be allowed to operate and put together a FY03 budget. But as I said, time is running out.

It is imperative that Amtrak be perceived as an efficient, cost-conscious company. As I said previously, we are not viewed in that light today, but given a chance we will be.

From the time a Red Cap greets a passenger to the on-board personnel, you all have a role to play. How you treat the passenger is critical. Behind the scenes, giving your best is also important, whether you are doing track inspections, selling tickets in the call center or stations, or working the night shift at Wilmington or at the Bear shops.

We obviously have a lot of friends, but we also have those who think we are a waste of money. How each of us behaves is important. Individuals who do their best are doing their part to preserve Amtrak and our jobs. Non-performers are risking not only their own jobs, but all of our jobs.

I have made a commitment to run an efficient, effective service. I have made a commitment to fight to maintain the existing system. I will not deviate from those principles.

I need and appreciate your help.

June 5, 2002

Dear Amtrak Co-workers:

The purpose of this letter is to bring you up to date on a serious financial problem that we face. In order to operate through the remainder of the fiscal year ending September 30, 2002, Amtrak must borrow over $200 million, the cash shortfall between our revenue (including subsidies) and expenses.

Whatever we borrow this fiscal year will be repaid out of next year's subsidy, assuming we get the $1.2 billion we requested for next year--$200 million will go to repay our loan for 2002. You should know that as of today that $1.2 billion has the support of 150 House and 35 Senate members--so progress is being made.

The supplemental appropriation of $55 million, of which you may have heard, is not directly related to this problem. This money is primarily for the repair of wrecked and damaged cars.

Securing a bank loan before month's end for the remainder of fiscal year 2002 is a necessity. We are working on the problem. As of today, we have not arranged financing.

I also spoke to you recently of an effective management structure. This week, we will begin the move back to a traditional railroad structure, which should be in place early in the next fiscal year. We will have an operating department, a mechanical department, an engineering department, etc.

One last thought. Guests may be called passengers.

I will keep you posted.

July 30, 2002

Dear Co-worker:

I would like to personally thank all of you for everything that you did in the aftermath of yesterday's derailment of the "Capitol Limited". Offers to assist came from near and far throughout the company.

I am proud to be associated with dedicated and professional railroaders. The personal dedication and quick response of the crew and employees on board, the employees dispatched to the site, the CNOC team and everyone else that supported the efforts really made a difference. The temperature was extremely hot yesterday and this made the on site rescue work much more difficult. Nonetheless, Amtrak employees and emergency responders did an outstanding job in the rescue efforts while local vendors and neighbors alike pitched in and offered assistance. You can be sure everyone did their best for our passengers. Once again, this was a great example of teamwork at its best.

The result of this latest incident leaves us with a critical equipment shortage to operate our long-distance hi-level overnight trains. There is no easy or quick solution, but we are working hard to manage fleet resources to provide our full compliment of service. The Chief Mechanical Officer has been directed to begin an immediate wreck repair program, and over the next few days we will review the deployment of our fleet and see what adjustments need to be made.

Thank you for your continued hard work and loyalty to our railroad.

With respect and regards all,
E. S. Bagley, Jr.
Chief Operating Officer

July 19, 2002

Mr. Gunn recently received a letter signed "local union officials" in Boston questioning the need to maintain staffing levels to business plan and through attrition, as well as the need for conservative fiscal management of non-safety critical overtime.

I want to convey to you that our efforts in Boston to manage headcount through attrition and to responsibly manage overtime are no different than applied anywhere else in the United States of America. I appreciate your continued work with Amtrak management to manage costs and increase revenues through these constrained financial times.

Stan Bagley

July 19, 2002

I want to share with you the new structure for the operating department that Mr. Gunn approved this week. Organization charts that illustrate the top line direct reports for the operating department will follow. As you will see, this structure delivers consistency, accountability, and streamlined decision making for train operations throughout our national system.

The operating organization consists of six corporate departments, including Operations, Mechanical, Engineering, System Safety and Security, as well as the Environmental and Business Improvement units. I am pleased to announce the appointments of the following department heads:

-Vice President of Operations, Ed Walker
-Chief Mechanical Officer, Jonathan Klein
-Chief of Security/Safety, Ron Frazier
-Chief Engineer, TBD

Also note that my senior staff team has been reorganized to support key program areas. Included on the staff team are AVP Environmental, Roy Deitchman; Chief of Operations Planning, John Tucker; Director of Operating Budget, TBD; Chief of Business Management, TBD; and Director of Business Improvements, Ed Courtemanch. Ramona Schmitt will continue to serve as my Senior Executive Assistant.

Additionally, the national system has been structured into seven divisions within two regions, East and West. Bill Duggan will serve as General Manger, Western Region. Lynn Bowersox will serve as General Manager, Eastern Region.

The following people have been appointed as General Superintendents in the Eastern Region: Mike Decataldo, New England Division; Walter Ernst, Metropolitan Division; Daryl Pesce, Mid-Atlantic Division; and Joe Wall, Southern Division. In the Western Region, we have appointed two General Superintendents: Richard Phelps, Southwest Division, and Don Saunders, Central Division. We will soon begin recruiting for the position of General Superintendent, Pacific Division.

Stan Bagley
Chief Operating Officer, Amtrak

July 15, 2002

Dear Amtrak Co-worker:

Amid the concern for our survival over the last few weeks, I want to share some good news with you. The United States Postal Service has awarded Amtrak a new two-year contract to carry more mail. It involves 43 trains and 42 stations and includes strategies to tighten security in the post-9/11 environment. The base contract is for $80 million per year, which does not include overflow volumes. And, as in the past, we can and will exceed the base amount if Amtrak remains a responsive and reliable contractor.

In addition, a new supplemental service matrix was added to outline Amtrak service options on non-contracted routes. The matrix outlines service times and costs and provides the ten Postal Services Distribution Networks the authority to request additional services without waiting for USPS Headquarters approval. I know that we all want that extra revenue and will work hard to demonstrate to the Postal Service that we can provide extraordinarily good and reliable service.

A note of caution! The new contract specifies higher penalties whenever Amtrak fails to live up to tight contract requirements. We must be alert to ensure that equipment is in good condition, switch moves are made promptly, all mail is scanned, and routing is accurate. With your help, on-time delivery is assured except in cases, such as very severe weather (force majeure), where Amtrak is not at fault.

With respect and regards all,
E. S. Bagley, Jr.
Chief Operating Officer

Post Script:

Our locomotives are leaders. I want to be sure our engineers and on-board crewmembers can be proud of their train as it enters cities and towns across this great country. Was the power consist washed before departure - if not - why not? First impressions are lasting impressions!

February 13, 2002

Dear Amtrak Co-worker:

On Feb 14, Amtrak will conduct a nationwide "Safety is Where the Heart Is" safety blitz. The "Safety is Where the Heart Is" campaign emphasizes the importance of maintaining our focus on both employee and guest safety. Therefore, I am asking all departments throughout the NEC, Amtrak Intercity, Amtrak West, Mail & Express, Corporate Operations and the corporate service centers to take part in this important event.

As part of the "Safety Is Where the Heart Is" blitz, walkabouts are planned so that we can meet with both guests and employees. In stations and on trains guests will be handed leaflets with travel tips emphasizing safety when arriving at the station, boarding and detraining, and moving throughout the train. Employee walkabouts in offices and field and shop locations will discuss various safety topics including office safety, Switching Operations Fatality Analysis program (SOFA), and information on how to prevent slips, trips, and falls.

The employee walkabout will also serve as an opportunity to discuss changes in the Safety structure that resulted from the recent reorganization, and the Safety resources that are available at the corporate, SBU and division or business group levels. Employees will receive information that identifies system-wide Safety management personnel and contact information. The new structure will provide Safety management an ideal opportunity to work closely with local management, supervision, labor, and local safety committees.

After all, "Safety Is Where the Heart Is".

Best regards, and stay the course.

E. S. Bagley, Jr.
Executive Vice President, Operations

August 14, 2001

Dear Amtrak Co-Worker:

I hope you are aware that we are falling short of our OTP goals this summer. As a reminder, OTP is the key driver of our guests satisfaction; as the train gets later, the steak gets tougher.

In my new role, I have quickly become aware of the multitude of equipment issues and carrier-related issues that create adversity for you each day in trying to provide excellent service to our guests. These issues will not be resolved overnight. I am working to develop plans that will address the problems. It is going to take time to develop these plans, and hard work to fix the situation.

In the meantime, let's fix what we control. I believe OTP starts in the terminals. If we can't get the trains out of the initial terminals, we will never get them over the line of road.

Do you know your initial terminal OTP goal? I do. If not, ask your supervisor and check every day. Watch the needle move as you make improvements; it's a great feeling.

Best regards, and stay the course.

E. S. Bagley, Jr.
Executive Vice President of Operations
Amtrak

August 5, 2002

As most of you know, a new Operations Department is being created effective October 1, 2002. The new organization will include two operating regions, supervising seven operating divisions, together with a mail and express group. While the start-up of the divisions will not occur until October 1, I want to begin an orderly transition to the new structure this month. Effective August 15, 2002, all existing operating responsibilities and reporting relationships in the Gulf Coast Business Group, headed by Deborah Wetter; the Auto Train Business Group, headed by Sharon Mahoney; and the Atlantic Coast Business Group, headed by Jay McArthur, will report to Joe Wall, the newly appointed General Superintendent of the Southern Division. At the same time, the Eastern Business Group, headed by Bill Lerch will report directly to Lynn Bowersox.

Also effective August 15, 2002, Bill Duggan will assume all operational responsibility for the Amtrak West organization from Gil Mallery, who as been appointed acting Vice-President of Planning. At the same time, the Southwest Business Group, headed by Joy Smith, will report to Richard Phelps, the newly appointed General Superintendent of the Southwest Division. Also, Brian Rosenwald will again head the Western Business Group in Chicago reporting to Don Saunders. Don will be asked to wear two hats as head of the Intercity Business Unit and leading the establishment of the Central Division, of which he is the newly appointed General Superintendent. Finally, Gary Erford, Assistant General Manager for the Empire Builder will report to Kurt Laird, General Manager, Pacific Northwest Corridor.

Again, let me reiterate that the above appointments are transitional and that the seven new division boundaries and responsibilities do not take effect until October 1. You should also be aware that job postings for many new positions in the Divisions will likely begin by August 9th. I also expect that letters to employees whose jobs are impacted by the restructuring will be sent on or about the week of August 12th. In the meantime, all other groups and reporting relationships remain unchanged until October 1.

I appreciate your patience and hard work as we begin the transition to the new operating organization. I know that multiple restructurings can be personally unsettling with the uncertainty that surrounds them. As President Gunn has stated though, we have one more chance to prove to the country our abilities as an organization and the value that Amtrak brings to our national transportation network. I know I can count on each of you to remain vigilant to your duties to ensure the safe and efficient operation of our trains and the comfort of our passengers.

Please feel free to circulate this memorandum throughout your organization. Thank you for your support.

Ed Walker

June 4, 2002

To My Colleagues at the NEC -

By now you may have heard that I am resigning as Senior Vice President of the Northeast Corridor effective June 15th. This was a difficult decision, as I consider the work we do important and I think it's a privilege to be part of this fine organization.

Although I haven't been with you long, I have met many of you in my travels along the Corridor and at our various offices. I am impressed with the quality and caliber of the NEC staff and believe you serve the public with professionalism and dedication.

Amtrak is a great organization - due in large part to the commitment of its people. And the Northeast Corridor is a key part of Amtrak's operation! I know these are challenging times for the Amtrak family, but I also know that you are capable of meeting these challenges and more as you do the work you do best.

For the remainder of my tenure, I will work with Stan Bagley and our new President, David Gunn, to ensure an orderly transition. I thank you for your support, your patience, your professionalism and your sense of pride as you educated me as to "how to run a railroad".

I wish you all the best for the future.

Sincerely,
Jim

Jim Weinstein
Senior Vice President - Northeast Corridor

Employee Advisory, Thursday, July 19, 2001

A message from George Warrington:

In Friday's Employee Advisory, I wrote a message to employees about the planning going into preparing a budget for the coming fiscal year. I said that our business is based on growth, and I was and continue to be proud of the four straight years of passenger and ticket revenue growth, as well as last year's record of serving 22.5 million guests.

But I also noted that the slowdown in the service economy is having an adverse impact on all segments of the travel industry - including Amtrak - and despite our successes, we are not meeting the forecasts set before the downturn. That's meant we've had to redouble our efforts to reduce expenses in this fiscal year, and secondly, begin with a lower base when projecting our revenue and expenses for next year's budget.

I continue to be hopeful about the economy's improvement, but we need to assume that the economy will continue to under-perform. The in-depth review of next year's budget - which actually starts October 1 - is analyzing every part of our business.

Today, many of you have heard or seen news stories reporting that decisions have been made about management staffing levels for next year, and that other actions are being considered.

As I said on Friday, many ideas for cost-cutting are being reviewed. Some will be adopted for next year, while others will be held as options or discarded outright. Despite today's news stories, I will tell you that no final decisions have been made at this time about the budget for next year and the actions within that budget. When decisions are made and plans are adopted that affect employees, we will make it known to everyone in this company. I said it on Friday, and will say it again here: I have always put a premium on being candid and straight on these issues.

As we work through the budget process, your continuing full support and dedication to your work is greatly appreciated by me, and what matters most, to the guests we serve.

Employee Advisory, Friday, July 13, 2001

A message from George Warrington:

As I have often said, Amtrak's success as a business is based on growth: improved service, increased ticket revenue, and expanded non-core performance. Our determination to grow has been fairly successful over the past several years. We've had four straight years of passenger and ticket revenue growth, and last year set a record, serving 22.5 million guests. But I want to continue to be honest and candid about our financial results. The slowdown in the nation's economy over the past six months, especially in the service sector, is having an adverse impact on all segments of the travel industry, from airlines to car rental, hotels, and even us at Amtrak. While some economic analysts believe they see signs of a recovery, last week's news of the first quarterly employment contraction in the service sector in more than 40 years was disappointing. Fortunately,Amtrak has not been hit as hard as others in the service sector, such as the airlines,which analysts believe will collectively lose as much as $1 billion this year as the number of their passengers has declined overall since last year.

Thankfully, Amtrak has been able to continue to grow above our results of the same period last year. Our June ticket revenue of $107.6 million was up 5.4 percent over last year, and was our best June on record. Despite the adverse economic conditions for the last nine months, we have sustained about a 10-percent growth in ticket revenue as compared to the same period last year. But our non-passenger revenue is currently down about 4 percent, hurt in part by slowing revenue in our contract shop work, as well as our Mail and Express business, which had seen annual growth of more than 20 percent for the past two years. But despite our overall continued growth, we are not meeting the forecasts we set before the economy took a downturn. So in this fiscal year, we've had to reduce expenses even more diligently in order to meet our financial targets.

The second impact of less-than-forecast growth this year means that we start with a lower base from which to forecast growth for the coming year. While I am hopeful that the economy will improve, we need to plan next year's budget with the assumption that the economy will continue at a slower pace. This is significant, and will require an in-depth review of every aspect of the way in which we do usiness. This review is under way right now and will continue through the summer.

First, I expect that many, many ideas for cost-cutting will be reviewed, with some implemented, some discarded, and others held onto as options. Depending on economic conditions and the performance of our business, fewer measures or more measures may be necessary. Second, we will be constantly monitoring the market to capitalize on adjustments to our business plan, whether it's changing equipment or offering special promotions, such as our summer 30-percent-off fare. Third, we will review and implement efficiency proposals, some of which may involve organizational restructuring when they become final.

I have always put a premium on being candid and straight. As senior management considers all options, I ask that you continue to provide your full support and dedication to your work. In the long run, our success in facing these challenges will mean an Amtrak that is stronger, more financially stable and better positioned for the future.