Bus & Motorcoach News
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June 15, 2003 THE NEWS RESOURCE FOR THE BUS AND MOTORCOACH INDUSTRY Transit competition, safety are industry targets WASHINGTON, D.C. — The sent over-the-road bus operators Blunt, appearing before the Littler, senior vice president of the like in the proposed SAFETEA long-term viability of the U.S. across the United States. panel on behalf of the ABA, testi- United Motorcoach Association, bill, there also are sections that motorcoach industry is being Harry “Woody” Blunt, presi- fied on the Bush Administration’s had briefed the staff directors of “are largely a disaster for the over- threatened by two critical public dent of Concord Coach Lines in public transportation and highway the Senate Commerce, Science & the-road bus industry.” policy issues: transit competition Concord, N.H., and chairman of reauthorization bill, officially Transportation Committee about The first and foremost problem, and safety enforcement. the policy committee of the known as the Safe, Accountable, the coach industry’s position on he said, has to do with competi- That message was forcefully American Bus Association, deliv- Flexible and Efficient Transport- various aspects of the $247 billion tion from public transit systems. emphasized last week before two ered the message to the Senate ation Equity Act of 2003, or transportation and highway bill. “The private bus industry is key committees of the U.S. Senate Committee on Banking, Housing SAFETEA. Blunt told the banking com- under assault,” Blunt told the sen- by the two associations that repre- and Urban Affairs. A few days earlier, Norman mittee that while there is much to CONTINUED ON PAGE 10 Driver given prison term in N.Y. crash CANANDAIGUA, N.Y. — The driver of a motorcoach that crashed one year ago in western New York, killing five people, has been sentenced to up to 10 years in prison. William Hovan, 60, admit- ted he had been gambling and got almost no sleep before he crashed an Arrow Coach USA bus down a 75-foot embank- ment on June 23, sending 23 people to a hospital and fatally injuring five. Forty-four people were onboard the coach. The crash occurred along the New York State Thruway Investor to buy 18 units of Coach USA near the small town of Victor, N.Y., which is about 16 miles PERTH, Scotland — Stage- vehicles and employing more than • Coach USA San Francisco, No longer No. 1? Page 11 southeast of Rochester. Pass- coach Group PLC has agreed to 800 people. which includes Grosvenor Bus engers injured in the crash were sell 18 Coach USA operating com- of $14.6 million, or an operating Stagecoach declined to identi- Lines taken to a hospital in panies in 10 western and south margin of more than 6.5 percent. fy the operations being sold, but • Goodall’s Charter Bus Rochester. Hovan was not seri- central states for $155 million. Net earnings were not disclosed. the list most certainly includes Service and Royal West Tours & ously injured. The buyer is a newly formed Coach USA’s West region con- Coach USA companies from fol- Cruises of San Diego In March of this year, Hovan affiliate of Kohlberg & Co. of New sists of California, Colorado, lowing roster: • Coach USA Sightseeing and pleaded guilty to manslaughter, York, one of the foremost acquisi- Nevada, Arizona, Wyoming and • Arrow Stage Lines, Phoenix Pacific Coast Sightseeing in assault, reckless driving and reck- tion and recapitalization compa- North Dakota, where more than a • All West Coachlines Inc., Anaheim less endangerment. By pleading, nies in the U.S. dozen companies operate 1,153 Sacramento, Calif. • Coach USA Denver and Ace his sentence was 3 1/3rd to 10 The Coach USA operations vehicles and employ 2,200 people. • Coach USA Los Angeles, Express Inc. of Golden, Colo. years. Had he gone to trial, the being sold produced revenues of The South Central region encom- which includes California • Coach USA Las Vegas and sentence could have run from 5 $215.9 million during the year passes Coach USA units in Texas, Charters Inc. of Long Beach and Nevada Charter in Las Vegas to 15 years. ended April 30, and an operating Tennessee, Arkansas and Antelope Valley Bus of Long • Bismarck Transportation in CONTINUED ON PAGE 13 profit, before goodwill amortization, Louisiana, running about 400 Beach and Sylmar, Calif. CONTINUED ON PAGE 11 TheThe The governor of Illinois is Lansing, Mich., must stop provid- DOCKETDOCKET expected to sign one of two bills ing charter service, says the that eliminate an onerous Federal Transit Administrtion. Illinois Wrap-up requirement that motorcoach Page 5 On July 1, operators in Illinois drivers must have a school bus will see their annual licensing driver license. Page 4 Message to Senators fees jump 36 percent. They Greater private sector involve- keep their rolling stock tax Cease and Desist ment in public transit is urged. exemption, however. Page 4 The public transit agency in Page 6 • 17 – 1993 -1995 40ft. Buses • Excellent Interiors • 33 – 1995 -1997 45ft. Buses • 43 Coaches Equipped with • Seating up to 58 Passengers 6 Monitor Video • Automatic Transmission • Many Coaches with • Low Total Coach Miles Aluminum Wheels • Restroom Equipped • Financing Available DETROIT SERIES 60 ENGINES QUANTITY DISCOUNTS AVAILABLE! MIDWEST NORTHEAST SOUTHWEST 800-222-2875 800-222-2873 800-222-2877 SOUTHEAST WESTERN 877-222-2879 800-222-2871 800-322-2877 For additional photos and information visit our website www.abc-companies.com BUS & MOTORCOACH NEWS — June 15, 2003 — 3 OPERATOR NEWS High-profile operator fails Insurance outlook ASHVILLE, N.C. — Travel remains grim Professionals Inc., a high-profile tour and charter company oper- The bleak liability insurance pic- “These are the large losses bus ating from its base in western ture that has burdened coach oper- operators need to fund and the ones North Carolina, has been shut ators for more than two years shows the insurance industry has found to down and is being liquidated few signs of brightening soon. be increasingly more expensive and under federal bankruptcy laws. While operators may have less predictable,” says Spachman. The sudden Charter 7 bank- noticed that the availability and “Much of the increase in large crash ruptcy filing stunned fellow rates for some commercial and losses has been the result of aggres- operators throughout North cover its financing costs. One operator that tried to help property insurance have improved, sive action on the part of the plain- Carolina and elsewhere. “They brought it on them- the company reportedly is owed the liability insurance market for tiff’s bar and runaway jury awards. Company President Brenda selves; they got in over their more than $20,000. The list also the coach industry remains, in two The new terrorism insurance legis- Sherlin had given Travel heads,” said one North Carolina includes hotels, restaurants, words, the pits. lation has nothing to do with every- Professionals an elevated profile motorcoach operator. “They attractions and credit card com- About the best that can be said day losses resulting from accidents,” by virtue of her industry activi- weren’t charging enough for those panies that are owed upwards of about the outlook for coach liability Spachman adds. ties and aggressive marketing. $400,000 motorcoaches, and were $130,000. insurance is that the worst is proba- Timothy D. Delaney, executive Ms. Sherlin is the immediate attempting to undercut the com- More than one operator con- bly over—for the better companies. vice president of Lancer Insurance, past president of the North petition.” tacted about the collapse of Operators that have suffered heavy says it remains unclear whether lia- Carolina Motorcoach Associ- Brenda Sherlin founded Travel Travel Professionals expressed losses are likely to face even tougher bility insurance rates have yet to ation and a member of the board Professionals 20 years ago, build- concern about the impact of the insurance days ahead. reach “adequate levels” in the of the American Bus Associ- ing the company from virtually liquidation on the industry at A glimmer of optimism had sur- coach industry. The reason for the ation. nothing. She was widely admired large. The problem, he said, is faced a few weeks lack of clarity, he Travel Professionals was posi- for her accomplishment. Her hus- that suppliers won’t know who ago when Moody’s says, is because tioned by Ms. Sherlin as a “pre- band, John, joined her in the busi- they can trust and will begin Investor Services insurance compa- mier, full-service motorcoach ness in the 1990s. tightening up credit for every- reported that the ‘These are the nies continue to company,” operating the “newest Travel Professionals’ services one. availability of com- face major fleet of modern luxury coaches” ran the gamut, including charters; “This is going to hurt the mercial insurance large losses unknowns. in the area. A year ago, the com- group, individual and special industry, this is going to hurt the had improved and “First, many pany had a dozen “Star Ships” interest tours, and convention and North Carolina motorcoach premiums were large claims are (coaches) before repossessions receptive services. Two specialties industry,” said another operator. declining. bus operators still outstanding cut the size of the fleet in half. were educational tours and provid- “Hotels are going to begin That hopeful- from the 1999 to The company’s troubles ing transportation services to demanding full payment and ask ness stemmed in need to fund.’ 2002 years, mak- stemmed in large measure from motion picture makers. for it far enough in advance that part from the ing it very difficult being over extended. The goal of The long list of creditors sub- the check will have cleared,” the impact of the ter- to determine rate operating the “newest fleet” mitted to the bankruptcy court operator predicted.