September 15, 2012

FMCSA warns of tire dangers, says to watch weights, ratings WASHINGTON — The Feder- Although it did not name the al Motor Carrier Safety Adminis- brand of coach in its bulletin, the tration has issued an emergency FMCSA was clearly referring to warning to motorcoach operators Van Hool double-deckers. about weight limits on tires. According to the agency, “one The warning came barely two common” double-deck, three-axle weeks after a fatal megabus.com coach has a gross vehicle weight crash in Illinois and other high- rating of between 53,000 and speed crashes this summer. 61,000 pounds. Investigations have pointed to a “A fully-loaded, double-deck front-tire failure as the likely cause motorcoach at or near the maxi- of the megabus crash that killed mum number of passengers, and a one person and injured 47 others. maximum luggage load, could ex- Alberta commercial vehicle enforcement officers inspected motorcoaches last month near the remarkable Columbia Icefield. The FMCSA bulletin urged ceed this GVWR, one or more motorcoach companies to take gross axle-weight limits, or the tire steps to prevent tire failures by weight ratings,” said the FMCSA. Summer of Inspections properly loading passengers and It also is widely thought that cargo, and increasing pressure in several models of single-deck, con- tires on the rear axles to the maxi- ventional 45-foot motorcoaches Fewer buses parked during Roadcheck 2012 mum marked on the tires when also may exceed their gross vehicle buses are carrying heavy loads. weight rating when fully loaded, GREENBELT, Md. — For the 8.7 percent (see July 15, 2011, Bus percent, compared to 3.6 percent In its bulletin, the FMCSA meaning operators of those coaches sixth consecutive year, the out-of- & Motorcoach News). in both 2010 and 2009. noted that fully loaded double- also should closely monitor tire rat- service rate declined for buses and In 2010, the rate was 9 percent, The lowest driver out-of-ser- deck coaches may be susceptible ings, loads and air pressure. motorcoaches checked during the in 2009 it was 11.5 percent, in vice rate in recent years came in Commercial Vehicle Safety Alli- 2008 it was 12.2 percent, and in 2003, when it was 1.7 percent. to overloading. CONTINUED ON PAGE 22 c ance annual Roadcheck inspection 2007 it was 12.3 percent. Still, given that Roadcheck is sweep. The lowest Roadcheck out-of- publicized well in advance (see Look out, diesel fuel prices This year, 8.6 percent of the service rate for buses during the May 15 Bus & Motorcoach News) coaches and buses inspected were past dozen years came in 2001 and has been conducted in early could zoom higher in Oct. put out of service during the three- when it was 7.7 percent. June for 25 consecutive years, it day safety blitz in early June. The out-of-service rate for bus remains disconcerting that nearly WALL, N.J. — A leading oil get close to the 2008 crazy period That meant this year’s rate was and motorcoach drivers also was 9 percent of the coaches checked price analyst says diesel prices when they reached $4.75 or higher. down slightly from the 2011 modestly lower this year at 2.5 from June 5-7 may not have been could go “much, much higher” in I hate to say it… Roadcheck out-of-service rate of percent. Last year, the rate was 2.6 CONTINUED ON PAGE 18 c early October, while gasoline pric- “We may be in for a short price es will fall come November. break from about Labor Day (Sept. Tom Kloza, senior oil analyst 3) to Columbus Day (Oct. 8),” he Feds wind up annual bus ‘strike force‘ for the Oil Price Information Ser- noted, “which represents an oppor- vice, offered a close-up look at the tunity. Then there is a real risk the WASHINGTON — The now force and the out-of-service rate In Minnesota, State Patrol and future of fuel prices in North numbers will go much, much annual Federal Motor Carrier was 9.6 percent. Department of Transportation in- America during a live webcast last higher. Safety Administration safety As with all such sweeps, most spectors checked coaches, limou- month. “(I am seeing) just about as sweep of passenger carriers con- of the inspections took place at sines, party buses and other pas- Called “Managing fuel prices compelling a case for a run-up in cluded late last month with thou- destinations, terminals and bus senger-carrying vehicles at Target in a volatile market,” the webcast diesel prices as I have ever seen.” sands of bus inspections conduct- yards, with a few conducted along Field, Mall of America, the Metro- was presented by a lending truck- Kloza outlined a number of ed nationwide. high-volume routes where passen- dome and area casinos. ing publication, Fleet Owner, and reasons why it’s likely diesel prices The National Passenger Carri- gers could be accommodated. Coaches sent to regular-season sponsored by Zonar Systems. will rise and gasoline will prices er Strike Force, as the “surprise” In Alabama, for example, the Minnesota Twins and preseason “Diesel is where I am really will fall. safety blitz is called, ran this year Motor Carrier Safety Unit of the Minnesota Vikings games report- worried,” said Kloza. Ironically, one of the primary from Aug. 13-27. state Highway Patrol Division con- edly got caught up in the sweep. “In Q4 of 2012 and Q1 of 2013, reasons is the amazing boom in oil Last year, the two-week sweep ducted inspections at the U.S. In one downtown Minneapolis we could see much higher (diesel) production in the U.S. and Canada. was conducted in late September Space and Rocket Center in Hunts- “saturation” enforcement, person- prices — as much as $50 per barrel While domestic oil production will and early October, ending Oct. 7. ville, as well as at the Greyhound nel from the Minneapolis Police above crude, or around $4 per gal- be instrumental in the country’s Three thousand coaches were Bus Station in Montgomery and at Department, Minnesota State checked during the 2011 strike Colonial Trailways in Mobile. CONTINUED ON PAGE 18 c lon wholesale. 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NORTHEAST SOUTHEAST SOUTHWEST WEST MIDWEST CANADA 800-222-2873 800-222-2871 800-222-2877 800-322-2877 800-222-2875 800-345-1287 Bus & Motorcoach News INDUSTRY NEWS September 15, 2012 3 Michigan operator pioneers ‘hearing loop’ technology OWOSSO, Mich. — One of about $800 per bus, was paid for eventually like to see it installed in Hearing loops are based on a terior) and is attached to a speci- the Midwest’s best-known opera- by the Michigan Department of all of our motorcoaches and in all simple technology that enables fied sound source. The wire can be tors, Indian Trails, has become the Transportation, which uses federal bus stations.” hearing aids equipped with “tele- in the ceiling or along the floor. first coach company in the nation and state money to subsidize some MDOT also installed hearing coils,” or “T-coils” as they are to install a relatively simple tech- of the routes operated by Indian loops in two bus stations — in commonly known, to amplify a Clear hearing nology that helps assure hearing- Trails, and pays for the coaches In- Saginaw and Bay City. single source of sound (such as a The hearing loop transmits the impaired individuals on its inter- dian Trails operates as part of the “I’m quite sure this is the first telephone, television, public-ad- source sound to the telecoil in a city and casino runs don’t miss Michigan intercity bus network. American bus line with hearing dress system, or the like) instead hearing aid electromagnetically, safety messages, driver announce- “This is proven technology loops,” said David G. Myers, a of amplifying all sounds as ordi- while surrounding noises are ments, or onboard entertainment. that represents an enormous im- professor psychology at Hope nary hearing aids do. screened out. Called “hearing loop” technol- provement in the onboard experi- College in Holland, Mich., who Nearly 70 percent of hearing They become invaluable be- ogy, the system has been installed ence of many of our passengers has hearing loss and is one of the aids in the U.S. are equipped with cause the inside of a bus, train, on 17 of the coaches Indian Trails who are hard of hearing,” said nation’s foremost advocates of telecoils, which are tiny coils of plane or transportation terminal operates on 34 scheduled routes Gordon Mackay, president of In- hearing loops. copper wire. can be so noisy that passengers serving communities in northern dian Trails. “The Indian Trails/MDOT in- The “hearing loop” is a wire with ordinary hearing aids often Michigan and the state’s Upper “The cost was relatively low, stallation…is a model of transpor- that runs around a space (be it an can’t separate important announce- Peninsula. about $800 per bus, and very little tation accessibility for the entire auditorium, church, living room, ments from the sounds of fellow The technology, which costs maintenance is needed. We would country,” said Myers. bus or airport terminal, or bus in- CONTINUED ON PAGE 18 c Operator-led suit against N.Y. MTA gets favorable ruling MINEOLA, N.Y. — A state portation System and Hampton North Carolina Motorcoach asso- all employees in Orange, Dutchess, imposed by the supreme court justice has ruled Luxury Liner. (See Jan. 1 and June ciations, and perhaps other motor- Putnam, Rockland, Westchester, legislature. The that a payroll tax that funnels hun- 15, 2010, issues of Bus & Motor- coach industry groups, provided Nassau and Suffolk counties, as payroll mobili- dreds of millions of dollars annu- coach News.) financial support to Schoolman as well as the five boroughs of New ty tax, as the ally to the New York Metropolitan Government units in commu- he pursued his suit. York City, for the past three years. levy is called, is Transportation Authority violates nities and counties surrounding Schoolman was particularly in- It generates between $1.3 bil- a crucial source the state constitution. New York City eventually filed censed by the tax because it helped lion and $1.5 billion in annual rev- of funding for The initial lawsuit challenging suits — that were carbon copies of finance a competitor — the MTA. enue for NYMTA, which has a New York MTA the tax was filed in December the original filed by Schoolman – In other words, the $20,000 in ad- budget of about $13 billion. subways, buses 2009, by colorful Long Island mo- challenging the tax adopted by ditional payroll taxes he paid an- Businesses and nonprofit orga- and regional Bill Schoolman torcoach operator Bill Schoolman, New York legislators to bail MTA nually went directly to MTA. nizations in the MTA region were rail service. whose bus operations include out of its financial morass. The tax — of up to 34 cents per among those who screamed the But Justice R. Bruce Cozzens Jr. Classic Coach, Schoolman Trans- The United Motorcoach and $100 of pay — has been levied on loudest about the tax after it was CONTINUED ON PAGE 18 c

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Do onboard recorders cut crashes? Study to tell FMCSA refines WASHINGTON — In what said Jeff Hickman, occupational board recorder rule, some in the have said they are routinely con- appears to be a classic case of health and safety expert at the ground transportation industry tacted by their carriers to keep CSA program putting the cart before the horse, Virginia Tech Transportation are predicting it will be the mid- driving regardless of whether WASHINGTON — The Fed- the Federal Motor Carrier Safety Institute. dle of 2014 before a final EOBR they are tired or in need of a eral Motor Carrier Safety Admin- Administration has commis- “Our database will also allow rule emerges, six months or more break. As long as drivers had istration has announced changes sioned a year-long study of us to look at preventable crashes after the Virginia Tech study is available time on the clock, they to its Compliance Safety Ac- whether electronic onboard re- and crashes that have been desig- completed. were pressured to keep the wheels countability enforcement pro- corders can reduce the risk of fa- nated as fatigue related.” If the FMCSA gets a pro- turning. gram, following a four-month tigue-related crashes even as it Hickman said the study aims posed rule out early next year, it Many electronic onboard re- public comment period. pushes ahead with plans to issue to “evaluate the potential safety will be followed by a comment corders allow dispatchers and FMCSA Administrator Anne an EOBR rule early next year. benefits of electronic onboard period, an evaluation of the com- bosses to monitor driver hours of Ferro said the changes were “Amazing, they are still recorders.” ments, possible revisions to the service at all times. aimed at improving the agency’s studying electronic logging at the In addition to crash compari- proposed rule stemming from the The Owner-Operator Inde- focus on truck and bus companies same time they are working on a sons, Hickman and his team also comments, and finally off to the pendent Drivers Association took — with compliance concerns — mandate,” said a long-time will study hours-of-service com- White House for a final review. the issue of driver harassment to that present “the highest potential risk to the public.” FMCSA observer. pliance, estimate how many op- “When you add all of those court last year. The U.S. Court of “CSA is raising the bar for The FMCSA grant to study erators and fleets are using things up,” says one expert, Appeals for the Seventh Circuit truck and bus safety, she said. “Our electronic onboard recorders EOBRs, how much the devices “we’re looking at a final rule in sided with OOIDA in the suit, va- preliminary data shows that fatali- went to the Virginia Tech Trans- cost to install and operate, and mid-2014.” cated the FMCSA initial rule- ties involving commercial vehicles portation Institute in Blacksburg, whether EOBRs provide the ben- The new federal highway and making on EOBRs for the indus- dropped 4.7 percent last year com- Va. efits some claim. public transportation law orders try’s so-called bad actors, and pared to 2010,” Ferro noted. The study will use existing Hickman says he will report the FMCSA to carry out an sent the agency back to the draw- “Still, on average, nearly data from the U.S. Department of the study findings in late 2013. EOBR mandate within the next ing board to sort out the harass- 4,000 people die in large truck Transportation to compare safety couple of years. ment issue. (See Sept. 15, 2011, and bus crashes each year. That is records and crash rates among EBOR rule on its way Bus & Motorcoach News.) why we are implementing these EOBR-equipped commercial ve- According to recent postings Big issue pending The OOIDA has been an out- important changes to make CSA hicles and vehicles that don’t and pronouncements by the The agency schedule is con- spoken critic of EOBRs, contend- even more effective.” have onboard recorders. FMCSA, the agency intends to sidered ambitious, especially in ing the gadgets are no more ef- Most of the changes apply to “For this research project, we publish a final EOBR rule in view of the fact the FMCSA still fective than paper logs when it over-the-road and hazardous-ma- terials haulers, but a few are will look at crash and vehicle March 2013 – well before the re- has not fully addressed the issue comes to safety and compliance, aimed at the bus industry. data to determine whether (vehi- sults of the Hickman study would of EOBRs being used as a tool to and asserting the devices will add The FMCSA said the changes cles) with electronic onboard re- be made public. harass drivers. unnecessary cost to commercial will provide the agency with corders have a significantly lower However, given the depth and In comments to the FMCSA, vehicle operations. Privacy rights more precise information when crash rate than those without,” complexity of an electronic on- many professional truck drivers are also a concern. assessing a company’s over-the- road safety performance. The changes that will be implemented SUMMERSPRING SPECIAL SPECIAL in December include: • Changing the name of the Fatigued Driving BASIC to the Hours-of-Service (HOS) Compli- ance BASIC “to more accurately reflect violations in this area,” and weighting HOS paper and elec- tronic logbook violations equally. According to an FMCSA of- ficial, requiring logbooks in the correct form and manner better enables enforcement officers to detect logbook falsifications. • Clarifying the definition of WORKS THE BEST - COSTS LESS passenger-carrier companies by: 1. 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The new which has been a longtime commis- touted as providing enhanced safety, agencies have gone cashless in re- pike Authority board unanimous- rates become effective Jan. 6. sion priority,” said Roger E. Nutt, a cleaner environment, improved cent years,” said Nutt. ly approved a plan to raise an ad- “Implementing this toll increase CEO of the commission. customer convenience and opera- Conversion to an electronic system Lancer_Easton_BAMN_Full_8_23_12_Layout 1 8/23/12 11:21 AM Page 1 ditional $21.14 million in toll generates the needed revenue to sat- The commission also selected tional efficiencies. is expected to take at least five years. revenue to continue a 30-year plan to maintain and rehabilitate the turnpike’s network of bridges, interchanges and pavement, as well as pay off existing debt. A full-length cash trip from York to Augusta will increase from “I’ve never dealt with a better claims team – $5 to $7 for passenger cars, while the most common cash toll for a standard three-axle motorcoach top to bottom – than Lancer’s.” (Class 3) will rise from $15 to $21. Even after the toll adjustment, “Ninety-nine percent of our company’s the Maine Turnpike will remain claims come out of our pocket due to among the lowest-priced toll roads in the U.S, say turnpike officials. our high deductible, so nothing is During the next five years, the more important than minimizing the turnpike authority plans to spend $113 million for bridge repairs level of our losses. Lancer knows that, and rehabilitation, and provide and ghts hard to get all our claims $82 million for turnpike paving and interchange improvements. settled effectively and efficiently. When there’s an accident, Lancer gets I-95 toll plan to injured parties and their families quickly, in an effort to mitigate a stirs opposition problem from the outset. RICHMOND, Va. — A plan by Virginia to construct an Inter- Every Lancer representative I have state 95 toll facility in Sussex dealt with has had a really good County, just north of the state line with North Carolina, has gener- understanding of the situation at ated opposition, including an on- hand and the nuances of our business. line petition. Last September, the Federal They also have what I think of as the Highway Administration granted Lancer style – get right on it, get the the Virginia Department of Trans- portation preliminary permission facts and try to get it settled for as to pursue a pilot program that little as possible.” would allow it to toll existing lanes on I-95. If you want fair, proactive Joe Scott V-DOT has proposed initial, claims-handling from a passenger artificially low toll rates of $4 for President and cars, $7 for three-axle motor- Chief Executive Officer transportation specialist, ask your coaches, and $12 for tractor-trail- Easton Coach Easton, PA agent for a Lancer quote or call Lancer ers at a single tolling plaza to be Lancer customer since 2005 built on I-95 between mile mark- directly and get assigned to an agent. ers 20 and 24. To learn more, call The department plans to con- duct a series of public meetings on 800-782-8902, x3304 or email the issue in the fall and develop a [email protected]. tolling agreement later this year. Governing boards in the Sus- sex region have passed resolu- tions against the proposal. Virginia Congressman J. Randy Forbes has sent letters against tolling to fellow Republi- can Gov. Bob McDonnell and the Federal Highway Administration. Many communities along I-95 are economically stressed and “un- able to shoulder additional eco- nomic challenges,” Forbes wrote. The petition against the toll 370 W. Park Avenue, P.O. Box 9004, Long Beach, NY 11561 www.lancerinsurance.com plan is available at www.virginia- tollfree95.com and www.face book.com/virginiatollfree95. 6 September 15, 2012 THE DOCKET Bus & Motorcoach News ‘Connected vehicle’ crash avoidance technology tested ANN ARBOR, Mich. — The Arbor. Michigan Transportation Research The test cars, commercial be vulnerable to interference, ac- U.S. Department of Transportation U.S. Transportation Secretary Institute, the road test, or model de- trucks and buses, most of which cording to the USDOT. has launched a year-long pilot Ray LaHood joined elected offi- ployment as it is known, is a first- have been supplied by volunteer “Using either in-vehicle or af- project to test technology that lets cials and industry and community of-its-kind test of connected vehi- participants, are equipped with termarket devices that continuous- cars, trucks and buses “talk” to leaders on the University of Mich- cle technology in “the real world.” vehicle-to-vehicle (V2V) and ve- ly share important safety and mo- each other and to infrastructure. igan campus to launch the “Con- According to the University of hicle-to-infrastructure (V2I) com- bility information, vehicles The idea behind the technolo- nected Vehicle Safety Pilot,” the Michigan Transportation Research munication devices. ranging from cars to trucks and gy, which uses Wi-Fi-like devices, largest road test of connected ve- Institute website, “The model de- These will gather extensive buses to trains would be able to is to avoid crashes and improve hicle crash avoidance technology. ployment will find out how well data about system operability and ‘talk’ to each other and to different traffic flow. “Today is a big moment for au- connected vehicle safety technolo- its effectiveness at reducing types of roadway infrastructure” If the tests and other research tomotive safety,” said LaHood. gies and systems work in a real-life crashes. such as traffic signals or toll go well, it could lead to govern- “This cutting-edge technology of- environment, with real drivers and The technology that enables booths, it says. ment mandates sometime in the fers real promise for improving vehicles. It will test performance, the vehicle systems to be connect- For more information about future. both the safety and efficiency of usability, and collect data to better ed is based on “dedicated short the USDOT connected vehicle re- Nearly 3,000 vehicles are tak- our roads.” understand the safety benefit of a range communications,” which is search, go to www.safercar.gov/ ing part in the project in Ann Conducted by University of larger scale deployment.” similar to Wi-Fi but is not likely to connectedvehicles. Automotive safety technologies offer muddled picture ARLINGTON, Va. — Early pect for commercial vehicles, ap- percent, and so-called adaptive pated,” said Matt Moore, vice presi- they set off frequent warnings that experience with the latest crop of pears to reduce safety, rather than headlights can cut the risk of a dent of the highway loss institute. drivers eventually tend to ignore. automotive safety technology help, though it’s not clear why. multiple-vehicle crash by as much However, the study also found The new systems are prolifer- that’s wending its way to the mo- And other systems, such as as 10 percent, the Highway Loss that lane-departure warning sys- ating in cars sold in the U.S., and torcoach industry is producing blind spot detection, aren’t show- Data Institute study found. tems installed on Mercedes and are being tested and adapted on mixed results. ing clear effects on crash patterns. Some forward-collision sys- Buicks, which alert a driver when commercial vehicles. Forward-collision avoidance The findings are from insur- tems are coupled with autono- their vehicle drifts, increased the The insurance group studied systems, particularly those that can ance claims analyses by the High- mous braking that slows a vehicle, risk of a crash. The study didn’t damage and injury claims for ve- brake autonomously, along with way Loss Data Institute, a unit of even if the driver doesn’t react, determine why the risk increased hicles from a variety of automak- adaptive headlights, which shift di- the Insurance Institute for High- when it’s approaching something when using those alerts. ers, Honda, General Motors, rection as the driver steers, are show- way Safety. in front of it too quickly. The institute found no effect on Mazda, Daimler and Volvo. ing the biggest crash reductions Forward-collision warning “Forward-collision technology crashes from blind-spot detection. The U.S. National Highway when installed on automobiles. systems, which use a camera or is reducing claims, particularly for There has been speculation Traffic Safety Administration has However, lane-departure warn- radar to gauge what’s ahead of a damage to other vehicles, and adap- that both the lane-departure and been studying forward-collision ing systems, which have been vehicle, can reduce crashes with tive headlights are having an even blind-spot detection systems may warning and autonomous braking touted by some as a bright pros- other vehicles by as much as 14 bigger impact than we had antici- need further refinement because systems for more than two years. Setra - a Daimler brand

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Daimler Buses North America · c/o Setra of North America Inc. · 6012-B High Point Road · Greensboro, NC 27407 · www.setra-coaches.com 8 September 15, 2012 THE DOCKET Bus & Motorcoach News Truckers, brokers move forward with legal challenge to CSA WASHINGTON — A group of the District of Columbia Circuit companies. and a plaintiff in the case. sulting economic consequences on small truckers and brokers has starts the clock on a legal chal- “ASECTT members believe The group’s objective is to force small businesses, the agency has in asked a federal appeals court to re- lenge to CSA’s Safety Measure- SMS methodology is a work in the agency to determine which car- effect told the shipping community view the Federal Motor Carrier ment System. progress, unapproved for (FMC- riers are safe to operate, and to re- it cannot rely on the agency to do Safety Administration explanation The suit is the work of the Alli- SA’s) own use in making safety fit- move Safety Management System its statutory job to certify carriers of its CSA safety enforcement ance for Safe, Efficient and Com- ness determinations,” said ASECTT data from public view. as safe for use,” Sanderson said. program. petitive Truck Transportation, a President Tom Sanderson. Sander- “With no concern for the effect Joining the petition were the Air The petition for review filed group representing small carriers son is CEO of Transplace, a third- of (SMS data) publication…or the & Expedited Motor Carriers Associ- with8.375x10.875 the U.S. Claims Court Mgmt of Appeals Ad:8.375x10.875_Ad_ClaimsMgmt for and brokers, as well 8/24/12 as individual 9:51 AM Pageparty 1 logistics provider and broker, false branding of carriers and re- ation, the Expedite Association of North America, the National Associ- ation of Small Trucking Companies­ and the Transportation Loss Preven- tion and Security Association. CSA changes

CONTINUED FROM PAGE 4 NATIONAL INTERSTATE: • Ensuring all recorded viola- tions accurately reflect the inspec- tion type (i.e., only driver viola- tions will be recorded under driver SUPERIOR inspections). In addition, the FMCSA an- CLAIMS HANDLING – nounced the launch of a CSA sub- committee as part of the agency’s IT’S WE DO. Motor Carrier Safety Advisory WHAT Committee. The subcommittee is com- As specialists in wheels-based insurance, we aggressively prised of enforcement personnel, adjust hundreds of millions of dollars in claims each year. drivers, carriers, safety advocates, And on every claim, we fight tirelessly to keep customer shippers, representatives of the in- surance industry and others. costs low. In fact, a recent study of 90+ years of Workers’ Ferro said the subcommittee Comp and Auto Liability claims for 25 transportation will provide feedback, as well as companies, our techniques helped our customers enjoy a serve as a sounding board for rec- 20% savings compared with their previous carriers. But ommendations that come from don't just take our word for it, here’s the story straight stakeholders. “We are dedicated to strength- from two of our customers: ening our centerpiece enforce- ment program, our CSA platform, and ensuring that we are living up to our commitment to provide the transparency and responsiveness that we committed to when this program was under development,” she said. According to Ferro, nearly 1,700 law enforcement personnel and 14,000 carriers took part in the preview of the proposed changes to CSA’s online Safety Measure Sys- tem. From them, the agency re- MICHAEL, COACH TOURS LYNN, RMA CHAUFFEURED TRANSPORTATION ceived about 150 comments. “As an alternative risk client of National Interstate, I have “Accidents can be emotional events. National For complete details on the found their claims process to be far superior to what I had CSA changes, go to http://csa. Interstate has removed the emotion fmcsa.dot.gov/. come to expect after 20 years in the transportation business. and substituted it with compassion and Their staff communicates with me frequently about even a solutions. They’ve guided us through all our accidents Billions approved minor claim. We have saved a significant amount compared and resolved each one in a timely manner -- all while to what I had expected our claims would cost. I get the communicating with us at every step. Insurance is a necessity for roads in Iowa feeling that National Interstate is working but, with National Interstate, it’s also an investment in our DES MOINES, Iowa — Iowa as hard as they can to keep the business success.” has adopted a $2.6 billion plan to costs down.” rebuild and upgrade state high- ways over five years. The Des Moines Register re- ported that the Iowa Transporta- tion Commission approved the 3250 Interstate Drive plan for fiscal 2013 through 2017. Richfield, Ohio 44286 It includes reconstruction 800-929-1500 projects on interstates in Sioux www.natl.com City, Council Bluffs and the Quad Cities, as well as work on dozens of other highways across the state. The road program is financed by a mix of state and federal money. Bus & Motorcoach News INDUSTRY NEWS September 15, 2012 9 Don’t expect belted seats to moderate in price soon While the price of belted seats dropped from a range of $12,000 executive. with no belts on them still because price drop yet in the seats we’ve installed in school buses has to $14,000 five years ago, to He noted that lap-and-shoulder- it’s not an actual requirement yet, been using to retrofit buses. As dropped during the past five years, $7,000 to $9,000 currently. belted seating has been installed on although it soon will be,” he said. more venders start to get in the motorcoach operators should not Another factor contributing to school buses for more than decade, Added Ron Miller, general market, we may see pricing drop. expect to see a price break on belt- the diverging price patterns be- “so it’s a more mature market than manager of the Motor Coach In- “I guess the good news for now ed seats anytime soon, say indus- tween school buses equipped with the motorcoach market is.” dustries Service Center in Loudon- is there hasn’t been a measurable try seat suppliers. belted seats and motorcoaches is “I think there are a significant ville, Ohio: “That’s interesting increase in price which should George Farrell of Amaya-­ the relative age of the two markets, number of people (in the motor- about the school bus market. keep belted seats as an attractive Astron Seating said increased de- according to one seating industry coach market) who are buying seats “We haven’t seen a similar option for our customers.” mand in recent years for belted seats on new motorcoaches has not tipped prices. Nor does he foresee a decline as the safety feature gains more wide- spread acceptance in the industry. In fact, he said, seat manufac- turers have begun to raise prices. One factor contributing to higher prices, Farrell explained, is the added cost of upgrades being made to belted seats that are likely to be passed along to buyers. “I can’t see prices going down because (manufacturers are) trying to engineer the seats to withstand higher G-forces,” he said. In contrast, a leading belted- Dyna-Bact seat supplier recently reported the price of equipping a school bus ✔ with three-point-belted seats has ENVIRONMENTALLY FRIENDLY Riteway in Wis. ✔ Synergistic odor-neutralizing complex ✔ Pre-measured and ‘ready-to-use’ buys Degnitz Bus ✔ Custom selected beneficial RANDOM LAKE, Wis. — Riteway Bus Service, one of the bacterial strains with macro- largest school bus operators in and micro-nutrients and Wisconsin, has purchased a small school bus operator, Degnitz Bus enzymes to liquify waste Service, from the Degnitz family. ✔ Merlin W. Degnitz founded the Cleans toilet parts and tanks company — nearly 50 years ago with long-term use — that serves the Random Lake School District. Random Lake is 38 miles di- 512.267.5190 rectly north of Milwaukee and about 32 miles northeast of Rite- way’s headquarters in Richfield, Wis. Ronald Bast, president of Rite- CALL FOR YOUR way Bus Service, said he and his family looked forward “to welcom- “With over 30 years of experience in the FREE SAMPLE ing the employees of Degnitz Bus motor coach industry, it is safe to say that Your Satisfaction Is Guaranteed! Service into the Riteway Bus fami- we have tried just about every toilet ly, and (we) will continue providing chemical there is . . . the same quality service to the Ran- dom Lake School District that Deg- Since we started using Dyna-Bact nitz Bus has been known for.” pre-measured self-dissolving packets Riteway purchased the compa- we have noticed that the coaches smell ny from Merlin Degnitz’ son and daughters: Carl Degnitz, Mary- clean—even if the coach goes more than carol Schoemaker and Jane Meyer. a day between dumping . . . the solids Degnitz management and drivers are broken down and there is less odor . . . will continue as part of Riteway. Dyna-Bact is a product that performs Riteway Bus has been a family and delivers as advertised and will be owned operator for 55 years. It has used by Daisy Charters and Shuttles 11 locations in southeastern and for a long time . . .” central Wisconsin, with a fleet of —Daniel Bratcher, V.P. Daisy Charters and Shuttles more than 600 school buses and 31 motorcoaches. The Degnitz opera- tion added 16 buses. For more information, go to worldwidemonochem.com www.goriteway.com.

8.5x11_Dyna-Bact.indd 1 10/21/11 5:04 PM 10 September 15, 2012 NEWS ANALYSIS Bus & Motorcoach News Must an insurance broker offer the cheapest coverage? So, who does your insurance ture of the relationship. did not mean that brokers were from the Emerson case is that in- broker work for? According to insurance law ex- ‘The broker still has a free to obtain insurance that did surance brokers should be cautious If you answered “me,” or “my pert Steven Pliatt, writing the In- not meet the insured’s needs or in- in advertising their abilities to ob- company,” you may be a little surance Journal, the Missouri Su- fiduciary duty to use surance that was unreasonably tain the lowest cost insurance for naïve, or actually believe your preme Court found that while costly or imprudent. their insureds because to do so agent when he or she says they’re Marsh owed Emerson a duty of reasonable care, skill The broker still has a fiduciary would expand the insurance bro- on your side. loyalty, the duty of loyalty did not and diligence in pro- duty to use reasonable care, skill ker’s obligations by that type of The question of an insurance include a duty to obtain the lowest- and diligence in procuring insur- course of conduct. broker’s true loyalties was at the cost insurance that met the in- curing insurance.’ ance. Failure of that fiduciary duty “Oftentimes brokers will ad- heart of a recent court case. sured’s needs “absent a specific would be legally actionable, not vise their clients that the broker The question decided by the agreement to do so.” with which the broker placed because it represented a breach of has shopped their insurance rates court was whether insurance bro- Emerson alleged that Marsh insurance. the duty of loyalty but because it with the insurance companies that kers are required to obtain the breached its fiduciary duty when it Emerson argued that even if would constitute a failure to exer- the broker represents and has se- “lowest-cost insurance” that meets secretly agreed to accept additional Missouri statute permitted a bro- cise the degree of care required in lected the lowest cost insurance for the insured’s needs. contingent commissions from in- ker to earn contingent commis- procuring a policy for the insured the client which is then recom- The Missouri Supreme Court surers to which it steered business. sions, the broker’s duty of loyalty generally. mended in a proposal.” provided the answer in the case of According to Emerson, this required it to inform the insured A duty to obtain the lowest The problem with this approach, Emerson Electric Co. vs. Marsh & prejudiced Emerson because it that it was receiving such contin- possible cost insurance can be as- says Pliatt, is that there are many McLennan Cos. prevented Marsh from obtaining gent commissions. The court re- sumed, however, by brokers. parts to a standard insurance trans- The case developed out of Em- insurance meeting Emerson’s jected that argument as well. A broker by contract or course action in terms of coverages that are erson utilizing the brokerage ser- needs at the lowest possible cost. Although the Missouri Su- of conduct can assume obligations being procured, i.e., auto liability, vices of Marsh & McLennan to The court did not address that preme Court refused to conclude beyond the normal duties of all in- UM/UIM, collision, comp, towing, procure liability insurance. During issue, however, because it found that the duty of loyalty required surance brokers to use reasonable medical payments, etc. The premi- the course of the relationship, Em- that the Missouri legislature had the procurement of the lowest-cost care, skill and diligence in procur- um for the policy is a composite of erson paid Marsh to place particu- specifically authorized brokers to insurance for the insured, the court ing insurance on behalf of insureds. the subpremium charges for each of lar types of insurance with insurers obtain commissions from insurers went on to explain that its holding Wrote Pliatt: “The takeaway the component coverages. to meet a variety of Emerson’s in- The better approach, according surance needs. to Pliatt, is for the broker to iden- According to Emerson’s alle- Refinancing loan program to expire tify within the proposal the gross gations, Marsh steered Emerson’s WASHINGTON — Time is ers can borrow up to 90 percent of the SBA’s traditional 504 loan pro- premiums charged for the amount business to a few insurers that running out for small businesses, the current appraised value of the gram: borrowers will work with of coverage represented by an in- agreed to pay Marsh extra com- which includes 97 percent of the assets being refinanced. third-party lending institutions surance company with a disclaim- missions contingent upon the motorcoach industry, to apply for One of the “most appealing and SBA-approved certified de- er indicating the proposal only amount of business Marsh sent to a special U.S. Small Business Ad- features” of the program is that velopment companies, typically compares the gross premium those insurers. ministration loan refinancing borrowers may be able to obtain private, nonprofit organizations to charge and not the pricing of sub- When Emerson learned of this program. “cash-out” proceeds from the refi- obtain the financing. components subsumed within the relationship it sued Marsh, in part, The temporary program allows nancing to pay for eligible busi- To learn more, go to http:// gross premium. alleging Marsh had breached its small businesses to refinance eli- ness expenses such as payroll, in- www.sba.gov/content/504- A better approach, he said, is to duty of loyalty to Emerson by not gible fixed assets with a 504/Cer- ventory and accounts payable, loan-refinancing-program. explain to the customer that the in- purchasing the lowest-cost insur- tified Development Company among others. There’s another SBA program, surance policy being offered is ance that met Emerson’s needs loan. Among the reasons for creating called Small Loan Advantage 2.0, “competitive,” focusing then upon ­because Marsh had steered the The program expires Sept. 27. the special 504 program was to as- that offers a simplified application the quality of the insurer and why business to secure the alleged “If you feel your business sist small businesses in refinancing process for an SBA 7(a) loan of up the agent has selected that particu- “contingent commissions” from could use a shot in the arm, now’s loans and restructuring debt. Addi- to $350,000. lar insurer for the agent’s inclusion the insurers involved with the ulti- the time to consider the 504 refi- tionally, the program is aimed at To learn more about this pro- within the proposal. mate placement. nancing option,” says the SBA. helping provide access to working gram, go to http://www.sba.gov/ Representations that the agent Under Missouri law, insurance The 504 program offers below- capital, which is currently the big- community/blogs/ got the “best price” for the cover- agents have a duty of loyalty to the market pricing and long-term, ful- gest credit gap in the marketplace. priming-lending-pump-small- age may give rise to an expanded insured, which is inherent in the na- ly-amortizing fixed rates. Borrow- The program is structured like business-sla-20. duty, he added.

ISSUE NO. 223 Marcia Milton How to contact us First Priority Trailways District Heights, Md. To submit or report news, Letters to To advertise or to mail advertising- Michael Neustadt the Editor, articles, news releases or to related materials: Coach Tours Brookfield, Conn. report corrections: Call: Johnny Steger at (866) 930-8426 A PUBLICATION OF THE UNITED MOTORCOACH ASSOCIATION E-mail: E-mail: Jeff Polzien Red Carpet Charters [email protected] [email protected] Staff Advisory Board Oklahoma City Fax: (405) 942-6201 Mail: 2200 N. Yarbrough, Suite B William Allen Gladys Gillis Tom Ready Mail: 3108 NW 54th Street Box No. 336 Editor & Publisher: Victor Parra Amador Trailways Starline Luxury Coaches Ready Bus Lines Sacramento, Calif. Seattle Oklahoma City, OK 73112 El Paso, TX 79925 Senior Editor: Bruce Sankey LaCrescent, Minn. Call: (866) 930-8421 Brian Annett Callen Hotard Brian Scott Annett Bus Lines Calco Travel To send advertisements or Sales Director: Johnny Steger Escot Bus Lines Sebring, Fla. Geismar, La. Largo, Fla. To subscribe or inquire about your photographs via the Internet: Industry Editor: Ken Presley David Brown Larry Hundt Dan Shoup subscription: E-mail: [email protected] Holiday Tours Great Canadian Trailways Cardinal Buses Associate Editor: Ellen Balm Randlemann, N.C. Kitchner, Ontario E-mail: Middlebury, Ind. [email protected] To contact the Art Director: Mary E. McCarty James Brown Sr. Dale Krapf Dennis Strief Magic Carpet Tours Krapf Coaches Vandalia Bus Lines Fax: (405) 942-6201 United Motorcoach Association: Richmond, Va. West Chester, Pa. Caseyville, Ill. Mail: 3108 NW 54th Street Editorial Assistant: Michele Nosko Call: (800) 424-8262 Steve Brown Godfrey Lebron Tim Wayland Oklahoma City, OK 73112 Online: www.uma.org Editorial Assistant: Maggie Masterson Brown Coach Paradise Trailways ABC Companies Call: (866) 930-8421 Amsterdam, N.Y. Hicksville, N.Y. Faribault, Minn. Editorial Assistant: Greg Lange Thomas Foley Joan Libby T. Ralph Young ©2012 by the United Motorcoach Association. Reproduction in whole or in part without Transportation Insurance Brokers Cavalier Coach Trailways Young Transportation written permission is prohibited. Accountant: Ted Williford North Oaks, Minn. Boston, Mass. Ashville, N.C. Bus & Motorcoach News NEWS ANALYSIS September 15, 2012 11 Charter rule challenge in Charlotte may be problematic CHARLOTTE, N.C. — For the sically undid the industry com- only had older buses. Customers in the rule. of buses” — could have found second time in less than two years, plaint against the Fort Worth these situations can set a specifica- To bring a valid complaint, an work. “The opportunity has been the motorcoach industry stands a Transportation Authority last year. tion for newer buses, as well as operator must be registered on the there all summer,” he said. chance of ending up with a large In that situation, the transit other requirements. FTA charter-rule website. Those This operator doesn’t believe helping of egg on its face over its agency was asked to provide 40 Under the rule, a charter opera- that aren’t registered do not have the requirement for lift-equipped protest of alleged violations of the buses to transport about 8,000 tor is considered “non-responsive” standing with the agency. buses was “trumped up” in a bid to federal charter service rule in con- people from a commuter train sta- if it cannot furnish the entire ser- Currently, there are only 183 exclude private operators. nection with a high-profile event. tion in Fort Worth to and from the vice requested by the customer. private charter operators, out of “With over 300 guests who use It happened last year in the football game. The transit agency is under no ob- roughly 3,400 nationwide, regis- wheelchairs or have mobility is- ­aftermath of Super Bowl XLV in In its handling of the request, ligation to use a couple of buses tered on the FTA website. sues, our greatest need is for lift- Arlington, Texas, when the Federal according to a complaint filed by here and one bus there. One operator who has contract- equipped motorcoaches or acces- Transit Administration rejected an the United Motorcoach Associa- ed to do work during the conven- sible transit-style buses,” Andrew industry complaint the charter rule tion on behalf of 18 members of What you must do tion says that any private bus com- Ballard, director of transportation had been violated on game day by the South Central Motorcoach As- Additionally, the FTA is a pany that wanted to participate in for the Democratic National Com- the Fort Worth Transportation sociation, the transit authority vio- stickler about one other aspect of the convention — “with any kind CONTINUED ON PAGE 20 c Authority. lated several provisions of the And it could happen again in charter rule. connection with the Democratic National Convention here this What the FTA decided month. In deciding the case, however, The American Bus Association the FTA determined the rule had has filed a complaint with the FTA, not been violated because — and opposing a request by the Charlotte this is important — none of the Area Transit System, known locally private operators that sought the as CATS, for an exemption from work could meet the specific re- the charter bus regulation. quirements set by the customer. The regulation typically pro- In the Super Bowl case, the hibits public transit agencies from customer wanted 40 buses that all doing work normally provided by looked alike. It set the requirement private bus and motorcoach because there would be as many as operators. 800 coaches and school buses In its complaint to the FTA, the around the stadium where the ABA contends Charlotte officials Super Bowl was played and it have not exhausted all efforts to wanted to avoid confusion among find privately operated motor- its customers as to which buses coaches to provide charter service they were to board. for the Democrats’ convention While private operators could early this month. supply some of the buses, none The charter service rule pro- could supply 40 look-alike buses. vides exemptions and exceptions The situation appears similar in to the preference for private opera- Charlotte. tors to perform charter work, and it The Democrats have specifi- specifies the exemptions are to be cally requested wheelchair-acces- granted only rarely and only after sible buses — from CATS, as well the public transit agency has met as from private operators. That’s its burden of proof. because at least 300 delegates to The ABA complaint cites at the convention, staying in 55-plus least four alleged rule violations Charlotte-area hotels, have major by CATS in seeking an exemption mobility issues. to run charters during the Demo- crats’ convention. What CATS must do While CATS says it has signed What the Dems want up as many wheelchair-accessible At issue is whether CATS can buses owned by private operators supply 40 40-foot, low-floor transit as it can find (a claim that is being buses and 12 30-foot, lift-equipped challenged by the ABA), under the trolley replicas to transport dele- federal charter rule it is not legally gates between Charlotte-area hotels obligated to pursue such action. and various convention-related In other words, there is no pro- activities. vision in the law that requires a The Transportation Management public transit agency to act as a Team of the Democratic National bus broker or transportation Convention Committee, the custom- coordinator. er in this situation, asked CATS to Its only legal obligation is to supply the accessible buses. notify private operators of a char- And while it appears likely the ter opportunity. It is then up to the transit agency did technically vio- private operators to contact the late aspects of the charter rule in customer, in this case the Trans- responding to the request by the portation Management Team of Democrats, the violations do not the Democratic National Conven- Visit our website for more information appear to be sufficiently egregious tion Committee, and negotiate the www.distinctive-systems.com/solutions to sustain a charter rule complaint. service and meet its requirements. Telephone: (646) 448-9981 The devil, as they say, is in the There have been reports that Distinctive Systems Inc. 131½ S Washington Street, Binghamton, NY 13903 details. some operators have been exclud- And it was such details that ba- ed by the Democrats because they If you like UMA Motorcoach EXPO... You’ll LOVE!

January 20-24, 2013 • Orlando, Florida THE event to attend in 2013! Register TODAY – UMA Motorcoach EXPO at Travel Exchange early-bird registration is everything you like about EXPO plus more! discount ends

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January 20-24, 2013 • Orlando, Florida THE event to attend in 2013! Register TODAY – UMA Motorcoach EXPO at Travel Exchange early-bird registration is everything you like about EXPO plus more! discount ends

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More Fun! More Education! More Networking! More Opportunities than Ever Before! UMA Motorcoach EXPO + NTA Convention = Travel Exchange Two Shows. One Price. A World of Opportunity. motorcoachexpo.com 14 September 15, 2012 INDUSTRY NEWS Bus & Motorcoach News Escot Bus Lines of Florida is named top IMG operator MINNEAPOLIS — Escot Bus Brian Scott served as IMG Lines of Largo, Fla., which started chairman in 2008-2010. He also nearly 30 years ago with two mini- has served on the organization’s buses shuttling tourists between board and is its representative on attractions in the Tampa Bay area, the board of the Global Passenger has been named International Network, an organization founded Motor Coach Group Operator of by IMG. the Year. Scott also is a former chairman The award was presented here of the United Motorcoach Associ- last month at the 15th annual IMG ation and is currently a member of Strategic Alliance meeting. the UMA board. The award is based on criteria IMG shareholders, suppliers ranging from operational excel- and staff heralded the Operator of lence, to safety record, to best the Year announcement with the practices, to community and in- entry of a new Prevost H3-45 dustry involvement, to engage- coach. ment within IMG. Escot’s owners and staff were Accepting the award was Escot expecting delivery of four new Pre- Bus’ President Brian Scott, and his vosts but had no idea one of them sister, company Vice President Pa- had been re-routed to Minnesota mela Scott-Calixto. They were and that it had been wrapped in joined on stage by their father, scenes from Tampa/St. Petersburg. Lewis Scott, who started the com- Escot, which is known for its pany in 1983 with his late wife, signature all-white coaches bearing Joining Brian Scott and Pamela Scott-Calixto of Escot Wilson, IMG president, and Geoff Lunch, IMG chair- Diane. In accepting the award, Brian the company name and a string of Bus Lines (third and fourth from the left), are (from man. The coach was especially wrapped to recognize Scott praised the commitment of his international flags along the side, far left) Hank Garbee, past IMG chairman; Bronwyn the award. staff, and the dedication they have now has a coach sporting photos of The company specializes in and Everglades. Operating three Mediterranean Shipping Cruises. shown throughout the years to cus- Tampa-area landmarks…and the charters, multi-day tours, game- such routes, it makes pick-up and It maintains locations in Largo, tomer service and safety. international flags. day express service to regional drop-off stops at 40 locations. Orlando and Sarasota. “We have built a family com- From its simple beginnings, sporting events, regular runs to Escot also is the official long- Since 2001, Escot has been a pany that we are all very proud of, Escot has grown into a diversified Seminole Hard Rock Casino, and distance ground carrier in Florida member of IMG, which is com- and Escot is delighted to receive operation with 45 late-model mo- contract services. for Royal Caribbean Cruise Lines, prised for more than 50 family- this honor from our fellow IMG torcoaches and 16 transit-style It also provides cruise ship Celebrity Cruises, Princess Cruis- owned, premium motorcoach com- companies,” he said. buses. connections to the ports of Miami es, Holland America Line, and panies across North America. Coming Soon! 9th Annual UMA Safety Management Seminar Dec. 4 - 5, 2012

NTSB Training Center in Ashburn, VA Presented by: Here’s what past a�endees have to say: “This seminar is a must for anyone who manages risk associated with motorcoach fleets!” “The informa�on was great and it is something that we all need to know.” “Well organized, informa�ve and helpful!” Bus & Motorcoach News INDUSTRY NEWS September 15, 2012 15 UMA announces ‘Maintenance Pavilion’ for 2013 Expo ORLANDO, Fla. — Efficient- With the show roughly five UMA says it’s not too early for can be found at www.motorcoach advantage of these opportunities to ly maintaining buses to operate at months away, UMA reports motor- Expo exhibitors to start promoting expo.com. The kit includes infor- help your company stand out, in- peak performance, plus strict ad- coach operator registration “is their participation in the show. mation on marketing opportunities, crease your brand recognition and herence to safety rules, is para- tracking well ahead of last year. To assist exhibiting companies promotional and hospitality oppor- drive traffic to your booth at UMA mount to every successful motor- “We’re already at nearly 50 make the most of their participation, tunities, editorial and advertising op- Motorcoach Expo at Travel Ex- coach operation. percent of our total operator atten- UMA and its trade show partners portunities, and sponsorship oppor- change,” said Masterson. With that as a foundation, the dance goal,” said UMA Meetings have compiled a variety of market- tunities, as well as who to contact to For information on exhibiting United Motorcoach Association is and Operations Manager Maggie ing and promotional tools available take advantage of the possibilities. at Expo, contact Scott Groves at carving out a special “mainte- Masterson. “Exhibit space is going to exhibitors (many at no cost). “You’ve confirmed your ex- (866) 287-3976, or email uma@ nance shop” niche on the show fast, as well.” The “Exhibitor Marketing Kit” hibit space, now it’s time to take naylor.com. floor of UMA Motorcoach Expo 2013 here in January. “Ninety-six percent of UMA Expo attendees are directly in- volved in the purchasing decisions for their maintenance shops,” notes The most cost-effective UMA Meetings and Operations Coordinator Amanda Zimmerman. The Expo 2013 “Maintenance Shop Pavilion” will consist of insurance program in the USA. booths, displays and demonstra- tions of products and services that will enable the hundreds of motor- coach company owners, managers, maintenance supervisors and me- chanics attending the show to find solutions for improving their shop operations. Maintenance personnel, as well as motorcoach company own- ers and managers with a strong in- terest in shop operations, always have been integral to Expo through their attendance at the annual Expo Maintenance Interchange or par- ticipation in the Expo Mainte- nance Competition. In addition, hundreds of shop supervisors and mechanics have attended Expo to learn the latest trends and best practices through specific education tracks and net- working opportunities. Now, they’ll be able to see spe- cific maintenance products and services at the Maintenance Shop Pavilion. “As director of general opera- tions, one of my primary responsi- bilities is keeping my coaches run- ning. I am very eager to visit the Maintenance Shop Pavilion at this coming UMA Expo to see all the products and services I need in my Next Stop: Maryland/Delaware! shop,” said Edward N. Mason Jr. of First Priority Trailways in Dis- High quality service is an important factor for success as you cater to a diverse trict Heights, Md. group of travelers. Your customers expect a high level of comfort and service that And, in a comment directed to potential Expo exhibitors, Mason differentiates your business from other modes of transportation. The Hartford and added: “If you have products or Smith Insurance are equally committed to providing high-quality insurance solutions services to keep my coaches run- through our insurance program designed specifically for charter operators. ning smoothly, safely and cleanly — I want to see you there.” We are currently in 46 states and have just recently been approved in Maryland and Delaware Next year’s Expo again will effective June 1st. Our depth of knowledge within your industry is underscored by our feature motorcoach safety inspec- tion demonstrations conducted on centralized underwriting for this special business. Depend on us to protect your business. the Expo show floor by state en- forcement personnel. Contact the agent for The Hartford’s UMA Motorcoach Expo 2013 Charter Operators Insurance Program at Travel Exchange will be Jan. 20-24. Fred J. Caffarelli The event will mark the first co- Senior Producer, Vice President location of UMA Expo with the An- SM 800-962-0459 • [email protected] nual Meeting of the NTA (formerly the National Tour Association). 16 September 15, 2012 INDUSTRY NEWS Bus & Motorcoach News Krystal files for bankruptcy (again), vows to remain in business BREA, Calif. — Krystal, into the nation’s largest limousine which has held a leading position converter, as well as a cutaway bus in U.S. limousine and cutaway bus producer, hearse manufacturer, and production for years, has filed for passenger van converter. Chapter 11 bankruptcy protection “As our economy and industry for the second time in two years. have contracted, we, too, have faced Krystal Infiniti, a holding many of the same difficult deci- company set up by a Hong Kong- sions and have had to adjust to the based lithium-ion battery maker in harsh realities — and continue to late 2010 to buy Krystal Koach out do so,” said Grech in his statement. of bankruptcy, itself filed for “We recently reached a point Chapter 11 reorganization last where we (were) forced to restruc- month. In recent years, Krystal has ture. In order to continue to pro- operated under the name Krystal vide the best products to the indus- Enterprises. try, and to ensure the long-term In a statement, Krystal Founder success of Krystal’s valued em- and CEO Ed Grech said the com- ployees, dealers and suppliers, we pany plans to stay in business de- will be streamlining our operations veloping, building and selling to meet the level of demand.” vehicles. In addition to pointing to the Dow Jones Daily Bankruptcy economy and industry factors as Review reported Krystal “doesn’t contributing to the company’s fi- have the cash to purchase parts to nancial collapse, Grech also indi- A Krystal Enterprises’ International 3200 cutaway was on the show floor of UMA Motorcoach Expo 2011 in Tampa. continue manufacturing vehicles, cated Krystal had stretched itself but it does own 51 (vehicles) at “So while the debtor does not and sale of the debtor’s existing ve- Comercia Bank has a secured loan thin by focusing on selling conver- various stages of completion. know at this time whether an ulti- hicles than they would be if the valued at $1.4 million, and un­ sion vans in China, and it over- “If it were to complete the pro- mate reorganization or going-­ debtor ceased its operations and secured creditors are owed $2.9 spent on developing the next gen- duction of those 51 and sell them, concern sale of its business will be closed down at this time, which is million,” according to court eration of limousines based on the along with the real estate it owns, possible, there is no question what- the only other available option,” documents. Lincoln MKT. it would be able to pay secured soever that the debtor’s creditors Krystal said in court documents. Krystal was started by Grech He asserted, however, that he creditors in full and provide a sub- and its estate are substantially bet- “The company’s primary se- nearly 30 years ago in a small and Krystal were committed to re- stantial distribution to unsecured ter off from the debtor’s continued cured creditor is East West Bank, Southern California auto body shop storing viability to the business creditors,” Dow Jones reported. business operations and completion which is owed about $6.5 million. he operated. He grew the company and “the long haul.” Mark Your Calendar Now! Bus & Motorcoach Academy fall semester begins October 11th

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For more informa�on or to register today, visit www.uma.org/academy Bus & Motorcoach News INDUSTRY NEWS September 15, 2012 17 Congress has opened a door for private bus operators By Dave Millhouser now is getting operators to walk safety programs. If you do these through that door.” ‘As an industry, we are things well, you can basically “Wild Bill,” despite his moni- His point is that, as an industry, ­operate any transportation ker, was one of our better drivers. we are often dependant on busi- often dependant on enterprise.” That is, until he got bored. ness finding us, and it may be time You’re probably wondering The boss made a mistake in to start looking a bit harder. Like, business finding us. It who this guy is…but I’m not gonna giving him a whole day off on the at your local transit agency. may be time to start tell you because you wouldn’t need far side of the country, and Bill de- The same guy (I only know one me anymore. cided to make the worst of it. “wizened executive”) said: “In looking a bit harder.’ In the early 1980s the old wood Dave Millhouser Cruising city streets in his an- 2011, transit riders took 10.2 bil- commuter rail bridge over Massa- cient 4104, he found a little old lion trips on taxpayer-subsidized UMA and ABA. They know what’s chusetts’ Danvers River burned, trumping the normal service level lady at a bus stop. He picked her transportation. The last numbers happening. stranding trains in Salem, with no of the Massachusetts Bay Trans- up, told her that since she’d been we have for the motorcoach indus- The other is to build a relation- way to finish the final 20 miles to portation Authority. such a good customer of the Tran- try is 723 million passenger trips.” ship with your local transit author- Rockport. The bus company made good sit Authority for so many years… Since the door is open, we ity or authorities. If you’re willing The only way to get people the money providing superior service he was going to take her all the ought to go after some of that busi- to do some of their routes, for less rest of the way home was to bus for more than a year, until the old way to her front door for free. ness because we can do it better — money, it helps them in several them from Salem to the North wood rail bridge was replaced by a Things would have worked out and cheaper. ways. Any cash you save them is Shore communities where they modern concrete structure. fine if she hadn’t written a “thank Transit authorities carry peo- available to do other things (hope- lived. Years later, when the bus com- you” note, whereupon the transit ple but they’re also involved in so- fully the ones they do best). The bus company pressed into pany had fallen on hard times, and folks took offense that Bill’s ser- cial engineering. For political rea- In addition, at a time when they service belonged to some close was eager to find new business, vice was better than theirs. sons they pay better than their need to rationalize employee com- friends and because the need was one of the owners came to me and Private-sector service is usual- private counterparts. That wouldn’t pensation, your presence provides unexpected they were desperate asked “do you know how to make ly better because our customers matter except for the fact they some bargaining chips. If we don’t for drivers…so desperate, in fact, concrete burn?” have choices. sometimes choose to compete with act now, when the economy revives, they used me. I still don’t know how to make A wizened bus executive re- us, and try to disguise those num- the chance may be gone forever. Since “Wild Bill” was a pal, concrete burn, but I’m convinced cently told me: “The new federal bers and other overhead. As the wizened executive says: and I’m a slow learner, I, too, took there are other ways to find good highway and public transportation In these troubled times we can “Things we are already good at some folks directly to their doors, paying work serving public trans- law includes a section mandating help them, and make money, by work in any transportation enter- or dropped them somewhere more portation authorities. increased private participation in taking some work off their hands. prise…hiring, training and dis- convenient than the assigned stop. Dave Millhouser is a bus ­industry public transportation, kicking I can think of two ways to get patching drivers, acquiring and Within hours the bus company marketing consultant and freelance doors wide open. started. You’ll think of more. One maintaining appropriate equip- was informed that such behavior writer. Contact him by email at: “However, the real concern is to query trade associations like ment, and implementing sound could not continue. We were [email protected].

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CONTACT STACY RENZ: (800) 644-5501 protectiveinsurance.com 18 September 15, 2012 SUMMER OF INSPECTIONS Bus & Motorcoach News National strike force Inspections at Grand Canyon nail operators CONTINUED FROM PAGE 1 GRAND CANYON, Ariz. — put out of service for mechanical Seven drivers, or 4 percent, conducted Aug. 14-15. Last year, ­Patrol Commercial Vehicle Sec- The motorcoach inspection blitz violations. The most significant vi- were placed out of service during the inspections took place Sept. tion and the MnDOT Office of conducted annually at Grand Can- olations noted by Arizona Highway the Grand Canyon checks, with the 26-28. Freight and Commercial Vehicles, yon National Park resulted in a no- Patrol inspectors were brakes, tires, most significant violations being A total of 218 motorcoaches inspected 52 buses and ticeably higher bus out-of-service exhaust leaks, stop lamps/turn sig- hours-of-service infractions, false were inspected last September, limousines. rate this year, but the percentage nals, and battery corrosion. records of duty status, suspended with a vehicle out-of-service rate A total of 11 citations were is- of drivers ordered off the road Corrosion on batteries and bat- driver’s license and not wearing of 9 percent (20 coaches). The sued and 74 warnings were given dropped. tery cable ends continues to be a corrective lenses as required. driver out-of-service rate last year for various driver and vehicle This year’s safety inspections controversial topic during bus in- One driver was arrested on a was 10 percent (22 drivers). violations. were conducted over a two-day pe- spections because keeping batter- Grand Canyon National Park war- The Grand Canyon is not nec- Three drivers were ordered off riod, versus three days last year, ies totally corrosion free can be rant for an unpaid violation from essarily a wonderful spot to be the road and 16 buses were placed but nearly as many buses were challenging. two years ago. Twenty-eight driv- placed out of service. out of service for equipment viola- checked by officers from the Ari- But, as has become painfully ers were cited by the National Park Although some maintenance tions. In total, 25 out-of-service vi- zona Department of Public Safety, obvious in recent years, any coach Service for permit violations. services are nearby, the nearest city, olations were discovered between the National Park Service and the maintenance personnel who aren’t FMCSA inspectors, apparent- Flagstaff, Ariz. (population drivers, buses and limousines — a Federal Motor Carrier Safety regularly checking coach battery ly checking agency databases, 66,000), is roughly 90 miles away. remarkably high, combined out-of- Administration. compartments for corrosion — found one coach that did not have Phoenix is nearly four hours away service rate of 48 percent. A total of 207 coaches were in- and getting rid of it — are inviting operating authority. and Las Vegas is four and one-half In addition, the Minnesota strike force conducted evening and spected with 28, or 13.5 percent, out-of-service orders. This year’s inspections were hours away. late-night inspections at major Roadcheck 2012 enforcement agencies and units to Motorcoach News.) increased number of inspectors concert and convention venues choose between participating in the Overall, buses accounted for this year. Only 8,000 inspectors around the state. CONTINUED FROM PAGE 1 CVSA-sponsored Roadcheck and less than 1 percent of all commer- participated last year. In Kentucky, State Police, able to proceed back to their origi- the Federal Motorcoach Safety Ad- cial vehicles inspected during “Once again Roadcheck effec- working with FMCSA inspectors nation points as scheduled and ministration-sponsored National Roadcheck 2012. tively identifies and removes from and local law enforcement agen- promised. Passenger Carrier Strike Force that A total of 74,072 trucks and the road truck and bus companies cies, conducted sweeps across the Many fewer motorcoaches — concluded in late August. (See re- buses were inspected this year by that cut corners at the expense of commonwealth, including checks 652 — were inspected during lated story on Page XX.) an estimated 9,500 CVSA- and safety,” said FMCSA Administra- at casinos, theme parks, historical Roadcheck this year.A total of Roughly 10.5 percent of the FMCSA-certified inspectors at tor Anne S. Ferro. “FMCSA em- sites, border crossings and carrier 1,217 buses were checked last year buses inspected during Roadcheck roughly 2,500 locations across braces Roadcheck 100 percent and facilities. during the CVSA sweep, compared this year were checked by safety North America. for good reason — it enforces high One detail, in Simpson County, to 1,097 in 2010 and 932 in 2009. officials in one state — Texas. A The overall out-of-service rate safety standards and improves along the Tennessee-Kentucky bor- There was speculation the drop total of 69 motorcoaches were in- for all vehicles inspected this year roadway safety for everyone.” der, inspected 10 coaches, with two in bus inspections this year result- spected at destination stops across was 20.9 percent and 4.6 percent for Roadcheck organizer and spon- of the drivers put out of service. ed from a pair of factors. the Lone Star state. drivers. Both numbers were higher sor, CVSA, is a nonprofit organi- “When you can take an unsafe Last year, bus safety was a The out-of-service rate for the than last year’s 19.3 percent for ve- zation comprised of local, state, driver who is operating a vehicle front-burner issue for enforcement Texas coaches was an embarrass- hicles and 4.2 percent for drivers. provincial, territorial and federal with 40 to 60 passengers off the officials across the U.S. after a ing 26 percent, more than triple the The number of trucks inspect- motor carrier safety enforcement road, it makes you feel good and string of high-profile fatal motor- national rate. And the out-of-ser- ed this year increased to 73,420 officials and industry representa- lets you know that these details coach crashes during the spring. vice rate for Texas motorcoach from 69,495 in 2011 and 65,327 in tives from the U.S., Canada, and can and do work and produce re- Second, tight budgets may have drivers was 5 percent, double the 2010, which likely reflects more Mexico. For more information, go sults,” said Sgt. Kelly Anderson of forced many commercial bus safety national rate. (See Aug. 1 Bus & big rigs being on the road, and the to www.cvsa.org. the Kentucky State Police. ‘Hearing loop’ pioneer Inc. of Holland, Mich., which tion was the quickest and easiest, and mentioned it to his supervisor. navia, Australia, and New Zealand, helped engineer the system for the and provided exceptional sound The supervisor brought the idea up I’m often asked why more of them CONTINUED FROM PAGE 3 first two Indian Trails’ coaches, quality. during meetings with MDOT offi- haven’t been installed in the U.S.,” passengers, a crying baby, back- said the response from passengers A second Holland-based com- cials, who liked the idea of testing said Prof. Myers. ground music, or nearby “was unbelievable.” pany, Hearing Loop Systems, as- the concept. “The answer is that our federal conversations. Since so many Indian Trails’ sisted with the custom design and MDOT agreed to pay for the disability laws require most public There are an estimated 1.4 mil- riders are older adults, the percent- engineering. system, while Indian Trails offered facilities with 50 or more seats to lion Michigan residents who have age wearing hearing aids was un- to install it in its coaches once it provide unspecified assistive lis- hearing loss, a number that’s ex- usually high and those individuals How it happened was engineered. An Indian Trails tening devices, which they tend to pected to double during the next were thrilled they could now hear Indian Trails became interested technician quickly was able to do by letting visitors borrow ear- 10 years. About 11 percent of the announcements, as well as A/V- in the technology largely by master installing the system in two phones and pocket-size receivers general population has significant system programming. happenstance. or three coaches in a single day. that tune into FM broadcast sig- hearing loss, as well as one-third After examining the Indian A company employee, whose “MDOT was excited about this nals or infrared waves.” of people 65 and older. Trails’ coaches, Contacta quickly mother is deaf, heard about hear- opportunity to provide state funds However, most people won’t An executive with Contacta determined that a ceiling installa- ing loops on National Public Radio to Indian Trails to allow Indian bother with earphones, notes Myers. Trails to make hearing loops avail- But if a hearing loop is avail- NYMTA lawsuit ately pushed back against the rul- Justice Cozzens’s ruling — un- able on a portion of its fleet and two able, it’s easy to flip a switch on a ing, saying it would appeal. The like the four previous dismissals of intercity bus stations,” said Sharon hearing aid to get sound from the CONTINUED FROM PAGE 3 MTA also noted that four previous suits seeking to block the tax — Edgar, administrator of the MDOT telecoil. Hearing aids can custom- wrote in his seven-page decision last court rulings upheld the tax and its found the state legislature and Office of Passenger Transportation. ize the output of hearing loop month that the tax was unconstitu- passage. then-Gov. David Paterson had run “MDOT and Indian Trails sound to suit one’s particular hear- tionally passed by the legislature. Last year, New York Gov. An- afoul of the home-rule provisions share a commitment to increasing ing needs, he explained. “The MTA payroll tax is a spe- drew Cuomo signed an overhaul in the state constitution when en- the accessibility of our transporta- Michigan and Wisconsin are cial law, which does not serve a that rolled back the direct proceeds acting the tax in 2009. tion system.” among states that have more hear- substantial state interest,” Cozzens from the tax by more than $300 That constitutional clause bars ing loop installations than else- wrote. “This law should have been, million annually, but required the the state from passing “special” Haven’t heard of hearing loops? where. according to the state constitution, state to make up that amount laws that affect individual munici- If hearing loops are a new con- Hundreds of west Michigan fa- passed with either a home rule mes- through other revenue sources. palities if local legislative bodies cept to you, there’s a reason why. cilities, for example, are now sage or by message of necessity Opponents of the tax argue it have not approved them. “Because hearing aids work far “looped,” including churches, audi- with two-thirds vote in each house. unfairly burdens businesses out- The state will continue to col- better when a hearing loop is avail- toriums, libraries and community This did not occur, therefore, this side the city to pay for transporta- lect revenue through the payroll able, and because hearing loops are centers, as well as DeVos Conven- law was passed unconstitutionally.” tion services that mainly serve city tax as the MTA pursues its appeal, The New York MTA immedi- residents and certain suburbs. officials said. common in Great Britain, Scandi- tion Center. Bus & Motorcoach News SUMMER OF INSPECTIONS September 15, 2012 19 From Alberta To Alabama

The Columbia Icefield, at right, between Banff and Jasper na- tional parks in Alberta served as a backdrop for inspections. In Alabama, below left, High- way Patrol Cpl. Donald Shepard reviews a logbook during last month’s National Passenger Car- rier Strike Force, while Trooper Andra Williams, at right, checks an engine compartment. A tele- vision crew recorded the event.

www.amaya-astron.com.mx 20 September 15, 2012 INDUSTRY NEWS Bus & Motorcoach News ‘Border Crisis’ bus tour wins operator global award TUCSON, Ariz. — A Tucson- area where illegal immigrants ­Sonora, Mexico. Gray Line convention. He used reaction to the based motorcoach operator that cross into Arizona. The tour, however, doesn’t video segments from television trip has been one offers one of the most unusual bus More individuals are believed cross the border into Mexico. coverage the tour has generated in of moderation tours anywhere has won this year’s to have illegally crossed into the The man behind the tour is his presentation. and increasing Gray Line Worldwide “most cre- United States from Mexico — Thomas “TJ” Morgan, CEO of Gray Line Tucson runs one or nuance in their ative tour” award. through the desert of southern Ari- Gray Line Tucson. two of the tours each month, de- views about the The tour, operated by Citizen zona — in the past 20 years than Morgan was in Paris, France, pending on demand. border, Fein­man Auto Stages/Gray Line Tours of anywhere else in the U.S. late last month to accept the award There have been as few as 8 told the Arizona Tucson, is called “Border Crisis: Tour takers hear from ranch- at the Gray Line Worldwide 2012 people, to as many as 55 passengers Daily Star. Fact and Fiction.” ers, federal law enforcement offi- Annual General Meeting and Mar- on the tours, tour guide Bob Fein- “We don’t try T. J. Morgan The tour, which Citizen Auto cials, humanitarian workers, bor- keting Conference. man told an Arizona newspaper. to convince people to be Republi- Stages/Gray Line of Tucson began der business people and others. When Morgan, a native of No- The price is $75 to $89 per per- cans or Democrats, liberals or con- offering last year, takes passengers They also get a lunch catered gales, Ariz., learned his tour had son, depending on discounts and servatives. We just want the border on a three- to four-hour trip from north of the border by the famous been nominated for the award he other factors. to speak to them so they can make Tucson to the U.S.-Mexico border La Roca restaurant in Nogales, put together a presentation for the The most common passenger their minds up.” Subsidies for convention centers are in spotlight CHARLOTTE, N.C. — The million in a single year for construc- average for similar-sized conven- best conventions. economic benefits remain crucial Democratic National Convention tion debt, operating losses and in- tion centers is 57 percent. A majority of the city’s high- for the growth of Charlotte. here this month has focused new centives worth hundreds of thou- Charlotte struggles to fill its profile events — which have re- Cities across the country, in- attention on the price cities are sands of dollars to win business. center in part because there is so quired large subsidies — are part cluding Charlotte, believe conven- paying to capture convention The promised payback from much competition with other cit- of an industry category called tion centers are must-haves, like business. the investment hasn’t materialized, ies, which have made large invest- SMERF, which stands for social, stadiums or museums. They argue There is no question that having the newspaper asserted. ments in convention centers even military, educational, religious and that conventions give their cities the Democrats here is the most as the meetings industry has been fraternal. nationwide exposure, making it prestigious event ever hosted by the Taxpayers on the hook in a slump. Unlike a major convention or easier to attract businesses. city, bringing tens of thousands of Meanwhile, Charlotte resi- The result is too much meeting trade show, most SMERF attend- In a bid to capture more and visitors and worldwide exposure. dents pick up much of the tab. space and too little demand. ees pay their own way. And most bigger conventions, a new conven- Local boosters see it as the Most convention center funding are on tight budgets. tion hotel was built in 2003 and an crowning achievement of the city’s comes from a countywide 1 per- Giving away the store edition, called the Crown Ball- two-decade drive to become a cent tax on restaurant and bar bills Charlotte has joined a common Padding estimates room, added 40,000 square feet of world-class convention destination. — a majority of which is paid by practice among second-tier tourism In estimating what convention space three years later. What’s less known are the tens Mecklenburg County residents cities in offering deep discounts to attendees spend, the CRVA has The city got a bump but no of millions of dollars in taxpayer who dine out. groups to win their business. routinely made erroneous claims, lasting increase. money spent to compete in the Since its 1995 opening, the According to the newspaper, to sometimes contradicting itself. convention industry, and the often- center has fallen dramatically land the American Bus Associa- When Charlotte landed the Lots of competition times wildly inflated projections short of projections. When the tion Marketplace in 2009, for in- 2010 National Rifle Association One problem: As Charlotte of economic impact used to justify center was being planned, it was stance, the Charlotte Regional Vis- convention — one of the city’s — was expanding its convention cen- the Charlotte Convention Center’s forecast to produce 528,800 hotel- itors Authority paid the group’s biggest-ever meetings — the Char- ter other cities were doing the construction and expansions, the room nights a year to fulfill its rent at the convention center, worth lotte Regional Visitors Authority same thing. Charlotte Observer reported last mission of putting “heads in beds.” $136,000; it paid the ABA more estimated gun enthusiasts would The amount of exhibit space month. That would have been about 20 than $200,000 to help sponsor spend $10.3 million. nationwide increased from 52 mil- The newspaper said that nei- percent of all rooms sold in the Marketplace conventions in 2007 After the NRA left, the CRVA lion square feet in 2000, to 70 mil- ther the city of Charlotte nor the county. It has never come close to and 2008; it spent $100,000 on a inexplicably increased that total by lion in 2010, a jump of 35 percent, Charlotte Regional Visitors Au- that projection. party for the group at the Charlotte 600 percent, adding tens of mil- according to data compiled by a thority have scrutinized how the In fiscal 2011, it produced Motor Speedway, and it offered lions of dollars of spending that professor at the University of convention center has performed. 142,000 room nights — 2.7 per- $125,000 on other expenses, in- was trumpeted to the public. ­Texas-San Antonio. “Elected officials who oversee cent of all rooms sold in Mecklen- cluding $8,000 in limo rides for In other events, the visitors au- Raleigh, N.C., for instance, it do not understand it,” said the burg, according to an Observer convention VIPs. thority said some conventions opened a $225 million convention paper. analysis of hospitality industry The ABA is back in Charlotte were attended by thousands more center five years ago. Nashville is Yet, officials have continued to data. in January for Marketplace 2012. people than actually showed. For a building a nearly $600 million pour taxpayer money into the con- It would take hosting five Demo- The American Legion, coming recent Shriners convention, the center. Indianapolis, another Char- vention business, even in the face cratic conventions a year, every year, to Charlotte in 2014, is penciled in tourism authority overestimated lotte competitor, finished a $275 of a national glut of meeting space to meet the original projections. for $440,000 of discounts, includ- attendance by 40,000 people. million expansion in 2010. and Charlotte’s inability to fill its The Charlotte Convention ing $360,000 in free rent. The Charlotte Regional Visitors While Charlotte and other cit- building. Center is empty most of the time, But, reported the Observer, Authority, which manages the cen- ies expanded, the value of hosting The Charlotte Convention Cen- with its exhibition halls used 35 even opening the checkbook ter, and the city, which owns the meetings and conventions didn’t ter has cost taxpayers as much as $30 percent of the time last year. The doesn’t mean Charlotte gets the building, argues that the center’s grow as it did in the 1990s. The industry slumped after the Charter rule challenge and the possible charter service “It is always better when non- charter service rule and if a com- attacks of Sept. 11, 2001. That dip being provided by CATS. It says publicly funded bus and motor- plaint is warranted, we will work deepened after the 2008 financial CONTINUED FROM PAGE 11 it’s “monitoring the developments coach companies work closely with operators, as we have in the crisis. mittee, wrote in emails sent to closely.” with the chartering parties and past, to prepare a formal complaint; On paper, the Charlotte Con- ­operators and organizations in- “We have been in touch with public officials to maximize the a requirement of the revised rule. vention Center’s decline hasn’t quiring about providing buses for operators and the Transportation use of privately-funded resources, “Right now we want to see the been as bad as the drop in other the convention. Management Team, and the situa- while all the while prioritizing the maximum number of private as- cities. “Should you or your member- tion appears fluid as the DNCC fi- public’s needs,” he said. sets utilized.” But that’s because the Char- ship have those types of vehicles, nalizes its plans,” said UMA Vice “Third-party transportation The grousing and hubbub over lotte Regional Visitors Authority please contact me at your earliest President and Chief Operating Of- management companies have their charter service at the Democrats’ counts a basketball tournament as convenience,” Ballard added. ficer Ken Presley. own priorities and they are not al- convention is in sharp contrast to a convention center event because UMA, which filed the Super “We’re seeing requests for ad- ways consistent with that of pri- the Republican National Conven- it hosts a fan fest. The tournament Bowl complaint last year, has not ditional vehicles and a few cancel- vate operators,” Presley noted. tion in Tampa late last month, produces 41,000 hotel-room lodged a complaint in connection lations as the DNCC firms up its “UMA has a reputation for in- where the complaining was mini- nights. That’s more than 25 percent with the Democrats convention plans. sisting on strong adherence to the mal to non-existent. of the center’s hotel business. Making hiring less of a guessing game

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OCTOBER 2012 Calendar 2-4 Northwest Motorcoach Association 13th Annual A cautionary tale about charters SEPTEMBER 2012 Convention and Roadeo, Pasco/ WASHINGTON — This is “We will continue to hold air- make a reasonable effort to ensure 10-12 17th annual BusCon, Tri-Cities, Wash. Info: Email one of those stories that’ll make lines and charter operators ac- the charter operator for which they Navy Pier, Chicago. Info: [email protected]. you feel good you don’t operate an countable when they fail to re- are providing flights is complying www.BusConExpo.com. airline. spect the rights of charter with the public charter rules. 17 Museum of Bus Transpor­ But don’t gloat toooooooooo passengers.” The Justice Department En- 12-14 2012 International Fuel tation Annual Meeting, Hershey, Tax Association/International Pa. Info: (717) 566-7100 ext. much. It’s not hard to imagine reg- World Atlantic stopped flying forcement Office noted that the Registration Plan Managers and 119, or www.busmuseum.org. ulators or legislators casting their charters for Direct Air on March late payments should have prompt- eyes in the direction of the motor- 13, following a week in which Di- ed World Atlantic to look into Law Enforcement Workshop, 21-23 Bus Association of Hilton Phoenix East, Mesa, Ariz. coach industry over the same rect Air failed to pay the carrier all whether Direct Air was following New York State Annual Meeting issue. the money it was owed for operat- the rules. The department is con- Info: www.iftach.org. and Marketplace, Info at: Here’s the story. ing the flights. tinuing to investigate Direct Air’s www.BANYbus.org. 13-16 2012 North Carolina The U.S. Department of Trans- A number of payments prior to shutdown. Motorcoach Association/ 27-30 California Bus Associa­ portation has fined World Atlantic that were late. There is anecdotal evidence Virginia Motorcoach Associa­ tion Annual Convention & Airlines $180,000 for violating A slew of passengers did not that sudden cancellation of char- tion Joint Annual Meeting & Trade Show, Fess Parker federal rules protecting air travel- receive the service they paid Di- ters is a continuing issue in the Marketplace, Benton Convention Doubletree Resort, Santa ers when their charter flight is rect Air for when World Atlantic motorcoach industry, along with Center and Marriott Winston-­ Barbara. Info: www.cbabus.com. Salem, Winston-Salem, N.C. Info: suddenly canceled. canceled the flights it was sched- charter groups left stranded when World Atlantic was one of sev- uled to operate for Direct Air. the coach they’ve arranged simply www.ncmotorcoach.org or NOVEMBER 2012 www.vamotorcoach.com. eral carriers operating flights for In issuing its fine against doesn’t show up. 29-Dec. 1 Motor Coach Direct Air, a charter operator also World Atlantic, the Justice De- The problem appears to be 23-27 Commercial Vehicle Canada Connections West, known as Myrtle Beach Direct Air partment’s Aviation Enforcement complicated or exacerbated by bus Safety Alliance Annual Confer­ Grande Rockies Resort, & Tours, which ceased operating Office said the carrier violated brokers that misrepresent them- ence & Exposition, Holiday Inn Canmore, Alberta. Info: www. in March. rules requiring it be paid prior to selves as bus operators, and cus- by the Bay, Portland, Maine. Info: motorcoachcanada.com or email Direct Air arranged charters operating a public charter flight tomer perception that a broker is www.cvsa.org. [email protected]. from a number of cities in the and prohibiting the cancellation of an operator. Midwest and Northeast to Myrtle such flights less than 10 days be- However, brokers are not the Beach, S.C., and cities in Florida. fore their scheduled departure. only offenders, with examples CLASSIFIED ADVERTISING “Our public charter rules are In addition, the carrier provid- aplenty of operators leaving cus- designed to protect consumers ing the transportation is required tomers abandoned. from sudden cancellations and to assure return flights for all U.S.- It may only be a matter of time being stranded away from home originating round-trip passengers before there’s an egregious inci- with no return flight,” said U.S. who have flown the outbound leg dent and consumer complaints Transportation Secretary Ray of their trip. catch the attention of regulators LaHood. Carriers also are required to and/or legislators. Diesel fuel prices gasoline, for which there is less “As the economy goes, so too do demand worldwide. global diesel price references.” CONTINUED FROM PAGE 1 Meanwhile, demand for diesel The return of a recession in Eu- long-term efforts to achieve ener- fuel — both in the U.S. and around rope or here could cause diesel gy independence, the crude com- the world — is expanding. Just one prices to stabilize or fall. ing from oil shale in North Dakota, domestic example: Demand for For fleets that want to hedge Pennsylvania, Texas and elsewhere diesel is brisk in the new oil and diesel, Kloza said, “Be ready to is better suited to making gasoline natural gas fields being developed pull the trigger about Labor Day than diesel fuel. in the U.S., which utilize huge through Columbus Day. That 3 TO CHOOSE FROM! numbers of trucks and other die- would be the period to hold your Over 500 K miles. All have Series 60 Detroits, Crude oil mismatch sel-powered equipment in fracking nose and hedge.” B500 Allison Transmissions. Seating capacity “Most of our crude is super operations. The U.S. Energy Information is 57. Currently in service with VERY COLD light and super sweet,” Kloza ex- Diesel fuel also may replace Administration reports that the av- Therma King A/C systems! All have 5 month plained. “Our refineries were not more fuel oil in the northeast this erage U.S. retail price of diesel old paint jobs. Asking $33,000 each. really built to process it. (The up- winter because of fuel oil market fuel has climbed above $4 a gal- shot is that) refineries running it conditions and new rules requiring lon, while the cost of gasoline at Please call for info at 757-494-1480 or will make more gasoline than die- cleaner fuel. the pump has risen to a national email us at [email protected] sel. Some estimates are that they It all adds up to higher diesel average of about $3.75. will produce 10-percent-to-as- prices. Both of those price marks are 2003 E4500 ~ Low Mile ~ One Owner ~ 58 Seats much-as-17-percent-less diesel.” significantly higher than pump Lift Equipped Coach • 8 Tie Down Stations Right now, Kloza noted, the Then again… prices recorded at the same time There are, of course, caveats in last year, the agency noted, with Bus converts seats United States exports diesel, pri- in less than 1 minute marily to Central and South Amer- Kloza’s forecast that could cancel a diesel now more than 22 cents a with Flip Seats ica. If domestic production swings rise in prices or even create a drop. gallon higher than a year ago, and Approx. 240,000 original miles toward gasoline, the U.S. may have “Diesel is THE international gasoline now more than 17 cents Detroit Diesel Series 60 Engine to import diesel while exporting bellwether product,” he explained. more expensive per gallon. Allison B500R transmission (hydraulic retarder) sure it is,” said U.S. Transportation weight limits.” Michelin Tires (not retreads) Asking $199,000 OBO Tire warning Enhanced sound system w/ Secretary Ray LaHood. The FMCSA said it’s working AM/FM/CD/DVD/PA system Marc: 808.832.6261 CONTINUED FROM PAGE 1 The bulletin says “safe motor- with state officials to increase en- Cordless mic & 6 monitors or [email protected] The FMCSA said its “Motor- coach operators” should have poli- forcement of tire safety provisions coach Safety Advisory Bulletin” is cies and procedures in place to of federal and state laws. meant to raise awareness of the monitor the loading of their vehi- According to the agency, a tire REPOS FOR SALE issue within the bus industry, and cles, and take appropriate action – on a motorcoach loaded beyond its •“Bank Repos” across the US • Priced to Sell it urged companies to take action “such as reducing passenger/cargo weight rating, operated at highway • Variety of Makes & Models to prevent potential safety risks. loads, distributing passengers speeds for a significant period of “Travelers have a right to ex- throughout the bus, or increasing time, is more likely to overheat and 1-877-737-2221 x30716 pect that their bus will be safe and tire pressure —­ to ensure they re- fail, potentially placing the safety well-maintained, and bus compa- main within the allowable tire of passengers and other motorists — View “Repo Inventory” www.Bus-Buys.com nies have a responsibility to make weight rating and state vehicle at risk. 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