Amtrak Board Fires Company President

Washington -- The Amtrak board yesterday fired company president David Gunn, saying it needs a new leader to accelerate reform at the debt-laden passenger rail service.

"The need to bring fundamental change to Amtrak is greater and more urgent than ever before," company chairman David Laney said in announcing Gunn's termination.

Gunn claimed his firing is part of the board's effort to disband Amtrak, which is an entity of the federal government and carries a debt of more than $3.5 billion.

Gunn, who opposes breaking up Amtrak, was quoted as saying, "Obviously, what their goal is--and it's been their goal from the beginning--is to liquidate the company."

Gunn's firing appears to be part of a conflict between the Bush Administration and some members of Congress over Amtrak's future. The Administration favors ending public subsidies to Amtrak, but the House appropriated nearly $1.2 billion to the service in this budget year.

A recent Government Accountability Office report supplied the board ammunition in its move against Gunn.

Issued last week, the report stated that Amtrak "is likely to need outside help in developing a comprehensive approach to address internal control weaknesses and improve the financial information for management and external stakeholders."

Known as a turnaround specialist of public transit systems, Gunn came out of retirement in May 2002 to lead Amtrak. Gunn previously supervised New York City's subway system and led the effort to build a light-rail system in in Washington.

Also on Wednesday, the board named Amtrak chief engineer David Hughes as acting president while it searches for Gunn's permanent replacement.