US: Amtrak Serves Free Wine, Loses $72 Million
US: Amtrak Serves Free Wine, Loses $72 Million
Nov 15, 2013 6(Time) - Amtrak, the federally-supported U.S. national railroad, lost $72 million in food-service expenses last year, almost all from long-distance trains on which passengers get complimentary wine and cheese.
Inspector General Ted Alves highlighted the food-related shortfalls in testimony at the House Oversight and Government Reform Committee hearing Thursday. Alves said operating losses on food and drink are a major cause of the railroads dependence on federal dollar to keep running.
The railroad’s customer service chief said in prepared remarks that Amtrak expects to break even on food service within five years through changes like introducing cashless sales, staffing reductions and supply-chain improvements.
Florida Republican John Mica said that any improvements in food service finances were a result of mere accounting tricks, Bloomberg reports.
“The Amtrak Inspector General has confirmed that Amtrak cooked the books to cover up food service losses that now approach $1 billion,” Mica said.
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