Federal Government Spends Money On Billboards Questioning The Safety Of Air Travel

Should the National Railroad Passenger Corporation really be spending money on billboard ads questioning the safety of airlines, which another federal agency is responsible for ensuring?

Those of you who want to argue that Amtrak is only a quasi-public corporation can do so. All of the company’s preferred stock is owned by the federal government. They’re subsidized both by the federal government and state governments. Amtrak itself was created by the Rail Passenger Service Act. Amtrak board members are nominated by the President and confirmed by the Senate.

I’ll ask again, should a government-owned and run agency be taking out billboards questioning the safety of air travel? And especially when the safety record of U.S. air travel is better than Amtrak’s based on number of deaths per passenger-mile?

About Gary Leff

Gary Leff is one of the foremost experts in the field of miles, points, and frequent business travel - a topic he has covered since 2002. Co-founder of frequent flyer community InsideFlyer.com, emcee of the Freddie Awards, and named one of the "World's Top Travel Experts" by Conde' Nast Traveler (2010-Present) Gary has been a guest on most major news media, profiled in several top print publications, and published broadly on the topic of consumer loyalty. More About Gary »

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Comments

  1. Hurtling through the woods at 100mph after a derailment because the driver was texting and high…sounds like fun.

  2. Beyond the question of the government competing with itself, I’d question the business judgment. Does negative advertising about a competitor bring you more business? Don’t think so.

  3. So Loaltitude is known for satirical meme type videos to do with flying so whilst I am not saying this sign definitely doesn’t exist, I also would not be surprised if it didn’t given I can’t find any other images of the sign and the post was 6 days ago.

  4. Gary- the Federal government provides funding to Amtrak. The government does not run it. The Feds provide oversight but Amtrak is corporation that makes its own business decisions.

  5. @Bob – the federal government owns all the preferred stock, appoints its board, and gives it money. The Presidentially-appointed board selects a CEO who runs it, and spends its money (states give it money, too).

  6. Because of the HEPA filters on airplanes, flying probably poses less virus risk than taking the train.

  7. A little ironic, given that Richard Anderson (CEO until earlier this year) used to be CEO of Delta, and current CEO William Flynn has served or currently serves on a bunch of airline and related boards.

  8. @Joseph N, Thank you for the info. This seems an odd tack to take for them even so. We were always taught that the one thing you never question in transport advertising is safety, even of your competitors, because that just hurts everyone. You guys are in a far better position than me to know Amtrak though, what with me living in the UK so I will defer to your judgements.

  9. Gary- Amtrak also generates revenue from operations and other non- Federal/state funding sources. Amtrak released their FY21 Fed Grant request in Feb (pre-pandemic) which shows that only 1/3 of their funding is from the Feds: https://www.amtrak.com/content/dam/projects/dotcom/english/public/documents/corporate/reports/Amtrak-General-Legislative-Annual-Report-FY2021-Grant-Request.pdf

    My point is that Amtrak makes financial and operational decisions that are not always tied to Federal funds. Yes, the Board is Federal appointed but do you think the Board actually made the decision on whether they should move ahead with a billboard advertisement? No, it was most likely someone from their marketing team using funds from revenues that are not tied to Amtrak’s Federal requirements. That marketing team is responsive to an EVP (neither of which are Federal employees). Saying the Federal government is responsible for these billboards is disingenuous and shows your complete lack of understanding on how Federal funding and decision making works.

  10. @JoesphN All railroads are exempt from local and state laws. Remember “interstate commerce”? As Amtrak is a railroad, they are not treated any differently than CSX, BNSF, etc. on these type of matters.

  11. Well, FAA approved 737 Max which killed hundreds of people. When was the last time hundreds died in a train crash?

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