Bus & Motorcoach News

September 1, 2004

THE NEWS RESOURCE FOR THE BUS AND MOTORCOACH INDUSTRY Tighter security slows Dismal coach border crossings, Price outlook for diesel isn’t pretty WASHINGTON — Not only is the current price Diesel Fuel Prices hassle-free days gone Stepped up security measures us too much hassle because they of diesel fuel outrageous but the outlook has turned Cents per Gallon equally as disgusting. 200 are running up the time it takes know it’s coming up.” Oil industry analysts, as well as the federal gov- 185 motorcoaches to cross the borders Most operators are handling ernment, are predicting high prices both for the short between the United States and the delays by building extra time and longer terms. 170 both Canada and Mexico, but car- into their itineraries, double check- riers and their passengers appear to ing to make sure their paperwork is “The effects of higher oil prices are . . . being felt 155 in the diesel market and it appears that relief is not be taking the delays — of up to an in order, and prepping passengers imminent,” says the U.S. Energy Information 140 hour or more — in stride. for the waits that now routinely “Certainly it’s taking longer to take from 20 minutes to more than Administration. 125 Perhaps worse, with no relief from high-priced cross the border, but we all recog- an hour, a significant increase from crude oil, diesel fuel and gasoline in sight, economists 110 nize that it’s because of the 9/11 sit- the five to 10 minutes it used to are now predicting the U.S. and world economies Sep Dec Mar Jun Sep uation and everything else we read take. 2003-04 could slip into recession because of the pervasive 2002-03 about every day,” said Brian Crow, Passengers are told of the delays impact of high energy costs. A worldwide economic executive director of the Ontario and border crossing procedures at slowdown would eventually reduce demand, causing Upward price revisions Motor Coach Association in the start of a trip and then remind- Toronto. “We expect and accept ed of them as the coach approach- prices to fall, but at an enormous cost in terms of jobs The latest Short-Term Energy Outlook published that there has to be better security, es a border station. “We have to do and consumer spending. by the Energy Information Administration contains a and there is a bit better under- that otherwise they could start Meanwhile, motorcoach operators are forced to substantial upward revision for diesel fuel and oil standing now from the carrier and complaining,” said Labrado. cope on a daily basis with diesel fuel prices that are at prices. passenger points of view.” Delays vary widely from border least 30 cents a gallon higher than they were one year The EIA expects the price of diesel to average Antonio Labrado, owner of crossing to border crossing and usu- ago. $1.79 per gallon in both the third and fourth quarters Sunset Coaches in El Paso agreed, ally depend on the time of day and A 30-cents-a-gallon difference means coach oper- of this year (revised up from $1.66 and $1.69, respec- noting that most passengers shrug amount of traffic coaches en- ators are paying $60 more for a 200-gallon retail pur- tively), after averaging $1.72 per gallon in the second off the delays because they’re acute- counter when they reach a station. chase today than they were last year. quarter. ly aware of the security needs at “Sometimes you get there about About the only protection for operators is to build However, that forecast will likely have to be a fuel surcharge into charter contracts. border crossings. “They don’t give CONTINUED ON PAGE 10 þ CONTINUED ON PAGE 12 þ Alabama coach association fights locally, nationally Although the Alabama Motor- to levels that could push the tax on “It was our main reason for coach Association has only been Second in a series of reports new and newer models to more forming,” said Thrasher, who was a around for two years, it’s already in on state bus associations than $5,000, from about $500. leading figure in organizing fellow the thick of some of the hottest issues state tax matters – personal prop- “They gave us no explanation operators. facing the motorcoach industry. erty taxes on the rolling stock of other than to say, ‘That’s how it is Since then, the association has The fledging organization is motor carriers, and sales taxes on sometimes,’” said Thrasher, adding worked closely with several state doing battle with its home state over new coaches – are the early targets that the increase was put into place legislators and earlier this year taxes and with the federal govern- of the organization, which wrapped administratively, not legislatively. managed to get legislation drafted ment over transit agencies gaining up its second annual meeting last “No laws were passed to do it, they that would trim the upper level of more authority to do charter work. month. just did it. It was a Gestapo tactic, the property tax to between $600 “Those are the biggest issues Thrasher said both issues have at least it seemed like that to me.” and $800, which is the average that that our members and our industry the potential of raising serious The increase triggered a series neighboring states charge. face right now and we’re working financial problems for most motor- of meetings among motorcoach Additionally, the measure hard to get them fixed,” says associ- coach companies in the state and operators across the state, which would set the minimum tax for Jim Thrasher ation President Jim Thrasher, pres- possibly even putting some out of led to the birth of the state associa- older coaches at $400, up from the ident of Thrasher Brothers Trail- business. tion and a vow from members to $250 that was charged before the ways in Birmingham. The property tax issue devel- sent out notices that it had raised challenge the state to reduce the higher tax rate went into effect. He said two critically important oped two years ago when the state the rates on the annual assessment tax to a more reasonable amount. CONTINUED ON PAGE 14 þ $ISCOVER WHY WERE THE 0ARTS 0ROS Á n «>ÀÌÃ] Ã«ii`Þ `iÛiÀÞ°

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BUS & MOTORCOACH NEWS — September 1, 2004 — 3 OPERATOR NEWS Charley turns Florida operators’ world wrong side up PUNTA GORDA, Fla. — “As it turned out, I do not believe groups that were going to Busch Similar sentiment was ex- Hurricane Charley, which dealt a anyone was.” Gardens and Universal Studios/ pressed by Brian Scott of Escot Bus devastating blow last month to Several coach operators report- Islands of Adventure. Lines in Largo, Fla. “While we feel hundreds of thousands of Florida ed heavy loss of business because of “Of course, all groups that had extremely lucky, we at the same residents and businesses, also deliv- the hurricane and Tropical Storm already begun their trips were time feel tremendous loss for the ered a harsh blow to many of that Bonnie that preceded it. returned early and all groups that folks that live south and east of us,” state’s motorcoach operators. “While we did not incur any had trips scheduled were can- he said. “As a company operating its physical damage from Hurricane celled,” said Davis. Two well-known coach indus- main terminal from Sarasota, Fla., Charley, there was a financial loss “Everyone experienced a finan- try veterans, Bruce Matthews, the with one-half of its equipment of thousands of dollars,” said Jeff cial loss due to Charley,” said Davis. retired CEO of Upstate Tours and based on the west coast (of Davis of Davis Tours in Ft. “But our financial losses dim in The Matthews Group in Saratoga Florida), we thought we were pre- Lauderdale. “We had multiple Boy comparison to what the physical Springs, N.Y., and Pete Worthing- pared for the worst,” said Maria Scout trips in the Keys, church victims of this hurricane are endur- ton, a former senior executive at Bankemper, president and general camps in Panama City, senior citi- ing, and I do not intend to make DATTCO in New Britain, Conn., manager of Cruise Connection. zen groups in Ft. Myers, and several light of their situation.” have closeby homes in Punta CONTINUED ON PAGE 13 þ Safety management seminar is planned for fall by UMA ALEXANDRIA, Va. — The experienced or advanced program. United Motorcoach Association is Each session will involve two full planning a major two-day, industry- days of classroom presentations. wide safety seminar for managers The seminar will begin each and owners of motorcoach opera- day at 8 a.m. and conclude at 5 p.m. tions, as well as company safety There will be an hour for lunch and directors. half-hour breaks during the morn- The seminar will be Dec. 1 and ing and afternoon sessions. 2, and take place at the training The programs each day will facility of the National Transporta- focus on a key management topic tion Safety Board in Leesburg, Va. and multiple presenters will be Participation by top NTSB officials involved. The agenda will include is expected. a whole range of topics related to “This seminar will present com- risk management, including hiring, prehensive and usable information training, disciplinary and opera- to persons who manage risks associ- tional standards. Plus, reward, ated with motorcoach fleet opera- incentive and compliance issues. tions,” said Victor Parra, president There also will be sessions on and CEO of UMA. “The informa- accident investigation and analysis, tion to be presented will include managing safety performance infor- principles and philosophies of risk mation, compliance audits, vehicle management; ‘how-to’ ideas on breakdown information and analy- application of risk-management sis, and driver information. principles, and samples of model The program is being designed policies, procedures, guidelines and and coordinated by The Daecher forms. Consulting Group of Camp Hill, “Attendees should return home Pa., and its principal, Carmen with a better understanding of how Daecher, will be one of the presen- to better manage fleet operations, ters both days. with tools to help them do it,” There also will be workshops Parra added. for members of captive insurers. The seminar will consist of par- Registration is expected to allel programs with simultaneous begin later this month. Watch for presentations designed for two lev- announcements in Bus & Motor- els of safety knowledge: a basic or coach News, on UMA’s Web site beginners-level program, and an and elsewhere. NYC tourism climbs despite challenges NEW YORK — Fueled largely city hosted 36.4 million tourists. In by domestic visitors, a record 37.8 2003, the city welcomed a record million tourists visited New York 33 million domestic visitors, three City last year, up 7 percent from million more than in 2002. 2002, according to NYC & Co, the International arrivals continue city’s tourism marketing agency. to decline, says Travel Weekly, The figure exceeded the previ- with 5.7 percent fewer foreign visi- ous record year – 1999 – when the tors in 2003, compared to 2002.

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Maine to raise FMCSA seeks ideas turnpike tolls for improving safety by nearly 30% of motor carriers WASHINGTON — Think 165 Courtland St., Atlanta, Ga. PORTLAND, Maine – Motorcoaches using the the federal government can do a 30303. Phone: (404) 659-6500 Maine Turnpike will begin paying significantly more better job of regulating the safety • Oct. 5, Hampton Inn & next year to use the thoroughfare. of over-the-road buses and trucks? Suites Dallas/Mesquite, Mesquite, The Maine Turnpike Authority voted unani- Have an idea for getting unsafe Texas mously to boost tolls Feb. 1, to raise an additional truckers and bus operators off the • Oct. 12, Wyndham Chicago $13.5 million a year for improvements to the 109- nation’s roadways? • Oct. 19, Fairview Park mile roadway. Then the Federal Motor Car- Marriot, Falls Church, Va. For three-axle motorcoaches, the toll rate will rier Safety Administration wants • Oct. 26, Sheraton Spring- increase nearly 30 percent, going to 11 cents a mile to hear from you. field, Springfield, Mass. from 8.5 cents, MTA spokesman Dan Paradee told take into account the fact buses help reduce traffic The FMCSA has announced FMCSA expects motor carri- Bus & Motorcoach News. Stated another way, begin- congestion by keeping more than 180,000 cars off the plans to conduct a comprehensive ers, insurance and safety advocacy ning in February, a three-axle coach will pay a cash turnpike each year. review of how it can best assess the groups, traffic enforcement profes- toll of $12 to travel the entire 109 miles of the turn- “We’re seeking the status quo with respect to our safety of the nation’s motor carriers sionals and the public to present pike, compared to $9.25 today. tolls because of the role we’re playing in Maine’s and ensure their compliance with their views on ways to measure the For two-axle coaches, the rate goes from 6.1 cents transportation policy,” she said. federal regulations. safety of truck and bus operations per mile today to 9.2 cents in February. A two-axle Turnpike officials said they will revisit Concord The multi-year review project and take effective action. coach traveling from one end of the turnpike to the Trailways’ request at their meeting later this month. begins later this month with a “Today we are making great other will pay $10.05, versus $6.70 today. The rate increase is the first by the Maine series of public listening sessions. strides in improving motor carrier By comparison, a five-axle over-the-road truck Turnpike in six years. It was adopted after more than The first one will be in San Diego safety,” said FMCSA Administra- will pay 15.1 cents per mile, a 78 percent increase a year of study. Volume discounts of up to 20 percent on Sept. 21, with the second a tor Annette M. Sandberg in from the current 8.5 cents. Cashpaying passenger cars are available for motorcoach companies and other week later in Atlanta. The new announcing the initiative. “Now is will begin paying 3.8 cents per mile. commercial vehicle operators. FMCSA initiative has been the time to look at every aspect of After the toll hike was approved, Turnpike The new revenue will be used during a five-year dubbed the Comprehensive Safety our safety program – how we use it, Authority Chairman Gerald Conley Sr. said it made capital improvement plan that includes $32 million Analysis-2010. how we can improve it and how sense. “It’s a rational increase. It’s not one that has for construction of a replacement toll plaza at York, Here are the dates and loca- we can add to it – so we can be gone hog wild.” Maine, the gateway for most tourists entering the tions of the sessions with addresses ready for the future.” Concord Trailways, the New Hampshire–based state from the south. for the first two. Future issues of Among ideas FMCSA officials intercity coach company that operates 12 daily round Other turnpike improvements include the reha- Bus & Motorcoach News will pro- will be looking for is ways the trips between Portland, Maine and Boston, voiced bilitation of 15 to 20 bridges for $27 million, the vide details on the sessions in agency can keep pace with the opposition to the toll hike and is seeking some relief repaving of 37 miles of roadway for $17 million, an October. growth of motor carriers. Just in from the increase. expansion of park-and-ride lots for $2 million and • Sept. 21, Doubletree Hotel the trucking sector alone, freight Andrea Maker, an attorney for Concord construction of a new turnpike authority headquar- San Diego/Mission Valley, 7450 volume is expected to grow 50 per- Trailways, was quoted as saying the authority should ters building. Hazard Center Dr., San Diego, cent in the next 20 years. Calif. 92108. Phone: (619) 297- Details on the sessions will also 5466. be posted on the FMCSA Web Transits seek charter operators • Sept. 28, Sheraton Atlanta, Site: www.fmcsa.dot.gov. The following public transit One Progress Plaza, Suite 5, Auburn, CA 95603. Phone: (530) providers have informed the Towanda, PA 18848. Phone: (570) 889-7500. United Motorcoach Association of 265-4057. Riverside County (Blythe), Truckers to ask court to keep their intent to provide charter bus Floyd County (Rome), Ga. Calif. Deadline: Sept. 13, 2004. service unless willing and able pri- Deadline: Sept. 10, 2004. Write to: Write to: John Andoh, Transit HOS rules during rulemaking vate operators step forward to offer Director, Rome Transit Depart- Manager, Palo Verde Valley Tran- WASHINGTON — The their services, or to bid on contract ment, City of Rome, 168 North sit Agency, 125 W. Murphy St., American Trucking Associations See editorial, Page 8 opportunities. Ave., Rome, GA 30161. Phone: Blythe, CA 92225. Phone: (760) plans to ask the federal appeals while the safety agency is cooking UMA urges appropriate opera- (706) 236-4523. 922-4900. court that threw out the hours-of- up new rules, the ATA doesn’t tors to take the time to respond to Memphis, Tenn. Deadline: Texarkana, Ark. and Texas. service rules to keep the new ones want the court to order a transi- these notices: Sept. 13, 2004. Write to: William Deadline: Sept. 14, 2004. Write to: in effect until the Federal Motor tion back to the old HOS rules. Lycoming County (Williams- Hudson, President & General General Manager, Texarkana Carrier Safety Administration So, the ATA plans to ask for a port), Pa. Deadline: Sept. 3, 2004. Manager, Memphis Area Transit Urban Transit District, 818 Elm comes up with revised rules. stay of its decision. If granted, a Write to: William E. Nichols Jr., Authority, 1370 Levee Rd., St., Texarkana, TX 75501. Phone: In July, a federal appeals court stay would allow the new rules to General Manager, Williamsport Memphis, TN 38108. Phone: (903) 794-8883. in the District of Columbia vacat- remain in effect during the Bureau of Transportation, 1500 W. (901) 722-7111. Ottawa County (Port Clin- ed the hours-of-service rules that FMCSA’s new rulemaking process. Third St., Williamsport, PA Placer County (Auburn), ton), Ohio. Deadline: Sept. 17, truckers began operating under in The ATA says it’s worried 17701. Phone: (570) 326-2500. Calif. Deadline: Sept. 13, 2004. 2004. Write: Max Wheaton, Di- January. about unintended safety conse- Towanda-Athens, Pa. Deadline: Write to: Will Garner, Senior rector, Ottawa County Transporta- The ATA thinks the court quences and unnecessary costs to Sept. 3, 2004. Write to: Karen Transportation Systems Supervi- tion Authority, 1702 W. Lakeshore decision will likely result in a the trucking industry that could Graber, General Manager, Endless sor, Placer County Department of Dr., Port Clinton, OH 43452. renewed hours-of-service rulemak- result from a transition back to the Mountains Transportation Authority, Public Works, 11444 B Ave., Phone: (419) 732-7433. ing process by the FMCSA. But old rules. BUS & MOTORCOACH NEWS — September 1, 2004 — 5 THE DOCKET Incentives are being sought for 2007 diesel engines WASHINGTON — Major year or early next year,” said Rainer duced, coach manufacturers were had to be modified to accept the the new engines. players in the trucking industry are Schmueckle, chief executive of forced to boost the prices for their new engines from Detroit Diesel At least one coach manufac- trying to forge a consensus over Freightliner LLC, the largest U.S. buses by $2,500 to $6,500 to cover and Cummins. turer did not raise its prices when what financial incentives they will heavy-duty truck manufacturer. the cost of the higher-priced For example, most coach man- the new engines were introduced. ask Congress to provide to encour- In Oct. 2002, when the most engines. The amount of the ufacturers were forced to boost Instead, that company converted age the use of cleaner-burning recent generation of reduced-emis- increase also depended in part on radiator capacity because of the some standard equipment to diesel engines as the effective date sions diesel engines were intro- the extent to which the coaches increased cooling requirements of options. of new federal pollution rules draws closer. Several of the largest truck equipment manufacturers have agreed to use the American Truck- ing Associations as the focal point for their drive to win incentives from Congress to help reduce the higher price tags that will be on the next generation of heavy-duty engines, beginning in the fall of 2007. “We have all decided to use the ATA as a venue to field our cause and bring … [incentives] to the attention of Capitol Hill late this Panel proposes dumping CARB SACRAMENTO, Calif. — A California government review panel has recommended replacing the powerful California Air Resources Board with a single director in a newly-created division of air quality inside the California Environmental Protec- tion Agency. The proposal, one of 1,200 recommendations in a 2,500-page report to Gov. Arnold Schwarzen- egger, would be part of a “vertical integration” of California’s environmental regulatory structure, said Chris Reynolds, leader of the group that wrote the proposals. If the plan is approved, there would no longer be a board structure; there would be a director of air quality, reporting to the secretary of the Cal-EPA. The Cal-EPA secretary would report to the governor’s office. Under the current structure, CARB is an independent agency with 11 members appointed by the governor. For 37 years, CARB has set and enforced the nation’s toughest emission standards for motor vehicles, fuels and consumer products. It also has set air quality standards, conducted research, monitored air quality and established control measures for toxic air contami- nants. Additionally, it has pushed alternatively fueled vehicles, including those powered by natu- ral gas and hybrid systems. And, it has been an outspoken critic of diesel-powered vehicles. 6 — September 1, 2004 — BUS & MOTORCOACH NEWS THE DOCKET Traffic restrictions TSA highway center offers security ideas D.C., N.Y., N.J. tighten security WASHINGTON — Federal tracked by establishing a regular NEW YORK CITY — With Department has restricted the south tion of Newark. transportation security officials are telephone (not cell) check-in pro- school back in session and the fall (eastbound) side of Canal St. for 6. District of Columbia Met- asking motorcoach operators to cedure. travel season close at hand, coach commercial traffic, diverting trucks ropolitan Police have closed the consider adopting special operat- • Where possible or feasible operators bringing charters into and doing random searches of vans, inner turn-off lane at Pennsyl- ing procedures whenever the consider altering, suspending or the northeastern U.S. should be buses and service vehicles. vania Avenue NW at 20th St. Department of Homeland Security adding protective measures to aware of the following travel 4. The Port Authority Police NW, and have K-9 units on scene elevates the terrorism threat level. routes to the affected areas or restrictions: of NY/NJ has closed the New to search commercial vehicles that The Highway Information places that fit the profile of the tar- 1. New York State MTA Police York-bound Holland Tunnel to stop at that location. Sharing and Analysis Center has gets identified by the Department have closed the Manhattan- trucks and is doing random search- All commercial drivers, in- come up with a list of specific of Homeland Security or the FBI. Bound Brooklyn Battery Tunnel to es of vans, SUVs, service vehicles cluding bus drivers, in these areas measures it would like to see oper- Pay special attention to routes that all commercial traffic, including and buses at the toll plazas. are being required to have their ators adopt — “with a sense of are in close proximity to potential for-hire vans, service trucks and 5. New Jersey State Police, documents (ID, registration, etc.) urgency” — when the threat level terrorist targets that have been heavy trucks. Buses will be Port Authority Police and Newark on board and ready to present to goes from yellow to orange or identified by the government. searched by police at the toll plaza Police are conducting random law enforcement at all times, and higher. • Carriers should communi- on a random basis. stops and searches of commercial to be prepared for and allow extra The Highway ISAC is a unit of cate with clients to that appropri- 2. The Williamsburg Bridge vehicles, buses, vans, SUVs and travel time for possible stops and the Transportation Security Ad- ate security measures are in place from Brooklyn to Manhattan is service vehicles in a 10–20 mile searches by law enforcement ministration and an adjunct of the and to articulate any security- closed to commercial vehicles and radius of downtown Newark, authorities. TSA’s Highway Watch program. related business continuity issues. will be inspected by the NYPD; including Newark-Liberty Interna- The Highway Information (See Aug. 15 issue of Bus & Verify the identity of drivers, as Brooklyn-bound traffic is not tional Airport, especially off the Sharing and Analysis Center posts Motorcoach News.) well as the times for passenger pick affected. New Jersey Turnpike and Garden updates to this list at www.high- Early last month, the up or unloading. 3. The New York City Police State Parkway exits in the direc- wayisac.org. Department of Homeland Security • Inspect any and all buses or issued regional terrorism threat other vehicles that have been bulletins for Washington, D.C., unattended for an extended period Security tightens for foreign visitors New Jersey and New York and a of time. WASHINGTON — U.S. Australia, New Zealand, Singa- before entering the U.S. Now, vis- number of financial institutions • Establish a protocol that will Customs & Border Protection is pore and Brunei. itors from so-called visa waiver within those areas. allow for security personnel to stepping up screening at the end of Visitors from these countries countries also will get the police Here is what the Highway locate buses (ongoing). this month of travelers from coun- will now be photographed and fin- booking routine. ISAC is suggesting coach opera- • Immediately report any and tries that have not needed a visa to gerprinted when they enter the The next step up in security tors do when such bulletins are all missing buses to local authori- visit the U.S. U.S. at major international air- screening of foreigners occurs at issued: ties and the Highway ISAC at Security screening will be ports and seaports. the end of October when all trav- • Verify the location and status (877) USA–SAFE (872-7233). enhanced starting Sept. 30, for vis- Customs officials currently fin- elers from the visa waiver coun- of all buses in or headed to the • Report all incidents of itors from Germany, France and 20 gerprint and photograph visitors tries must have passports that are affected region. Those vehicles potential surveillance or intelli- other European countries, Japan, who are required to have a visa machine readable. without tracking devices can be gence gathering. Feds set final RESTROOM COMPLAINTS? test phase for transport card YOU’RE NOT USING … WASHINGTON — The U.S. Transportation Security Admin- istration has hired a consulting firm to begin the third and final test phase of its Transportation Worker Identification Card program. TSA said it would work with BearingPoint Inc. of McLean, Va., on a “seven-month prototype … to analyze the administrative and business processes involved in col- lecting transportation worker data, performing background checks, issuing credentials and studying the day-to-day use of the cards.” TSA plans to eventually require all transportation workers in the U.S. to have a worker identifi- CALL US TODAY TO FIND OUT HOW YOU CAN ENTIRELY ELIMINATE cation card, including bus drivers and support personnel. SUMMER RESTROOM COMPLAINTS AND SAVE UP TO 50% OR MORE. The testing is expect to involve 150,000 truckers, long- shoremen and personnel working at airports and container term- UNIT CHEMICAL CORP (800) 879-8648 www.unitchemical.com inals. BUS & MOTORCOACH NEWS — September 1, 2004 — 7 INDUSTRY NEWS MCI is with you all the way.

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MCI Fleet Support Parts • Service • Technical Support • Warranty • Product Assurance • Technician Training • Roadside Assistance MCI Sales & Service Locations West Southwest Midwest Southeast East Canada MOTOR COACH Los Alamitos, CA Dallas, TX Des Plaines, IL Orlando, FL Blackwood, NJ Montreal, PQ INDUSTRIES 800 777-4101 800 248-4942 800 743-3624 800 390-0287 800 262-1287 800 663-3328 or visit www.mcicoach.com for a complete listing of authorized MCI Service Centers. We are America’s coach. © Motor Coach Industries, Inc. 2004, All Rights Reserved 8 — September 1, 2004 — BUS & MOTORCOACH NEWS OPINION Bad moon rising Gobbledygook Lawyers seldom deliver welcome new rules did not come close to news, and attorney David Sauvey solving that problem,” Sauvey of Evansville, Ind., certainly is no maintains. Understanding your insurance policy exception. The three-judge panel also did subjects of insurance are covered are vehicles, aircraft, watercraft, Sauvey has written a sobering not believe the justifications pre- in the policy. There are two main crops, outdoor signs, fences and assessment of the U.S. Court of sented by FMCSA for increasing areas in this section, one relates to retaining walls, roads and paving. Appeals decision that struck down the number of driving hours to 11 property and the other relates to Some examples of perils the new hours-of-service rules for from 10 were legally sufficient. The third-party liability. There are two excluded are frost, cold weather, truckers. studies cited by FMCSA showed parts to a property section: (1) the ruptures of water pipes, floods and “If trucking companies, owner- that driver performance begins to type of property covered, and (2) earthquakes in particular states. operators and shippers did not like degrade between the eighth and the perils insured against. Clearly Please keep in mind the exclu- the hours-of-service regulations 10th hours and degrades “geometri- you will be looking for the iden- sions can be brought back in that went into effect Jan. 4, they cally between hours 10 and 11.” tification of the buildings and under an insurance policy but it could hate what the Federal Motor Sauvey says the FMCSA cannot structures including, fixtures, will likely cost you more money Carrier Safety Administration go back to the old rules because it By Thomas D. DeMatteo machinery and equipment. and would be included in an comes up with following the deci- was directed by Congress to make Vice President & You would then look for extended endorsement. Typical sion in Public Citizen v. FMCSA,” changes. Keeping the new rules also General Counsel additional endorsements to cover exclusions in a liability policy are Sauvey writes in a recent issue of is out, even if it could come up with ABC Companies personal property such as, equip- discrimination in employee mat- Transport Topics, a leading trucking some “health-of-the-driver” justifi- industry publication. cation. “Anything it produces would Reading and understanding an ment, furniture, property of oth- ters, punitive damages, product “There are many who think certainly be suspect in the eyes of insurance policy is extremely diffi- ers, newly acquired property, and liability and certain types of auto this is an easy problem to fix,” says the court, and would not solve all cult because it is written in arcane the like. The next area in the liability. Sauvey. “Simply have FMCSA the other problems identified by the language and the words have property section identifies the The conditions section con- issue additional findings that say it judges,” says the attorney. meaning particular to the insur- perils insured against, such as fire, tains cancellation provisions has considered the health effects of “In other words, the only op- ance business. This column will vandalism, wind storms, etc. You ranging from 30 to 60 days. It also the regulations and they have no tion left to FMCSA is to come up explain the typical structure of an may need extended coverage outlines the policyholder’s duties adverse effect on driver health. with yet another new regulation.” insurance policy so you can better endorsements for earthquakes and in case of a loss or a claim under “However, this approach ignores And, according to Sauvey, the understand what it contains. water damage. the policy, defines the territory of the bulk of the court’s opinion in appellate court has given FMCSA All policies consist of four The liability section is where the policy, and deals with such which the judges pointed out all the the perfect political and legal cover. sections: declarations, insuring the insurance company agrees to subjects as subrogation, other other problems they saw with the “It can now ignore all outside inter- agreements, exclusions and condi- pay for bodily injury or property insurance and co-insurance. new rules and why they considered ests and promulgate a rule based tions. The declaration section damage of others. The injury must Lastly, you should review your them to be arbitrary and capricious. solely on the science of fatigue. provides fundamental informa- be caused by a covered occurrence policy every year with your broker Any one of these other problems “If I were a betting man, I tion: the named policy holder, and the occurrence must take and keep your policy in a safety would have been sufficient to would say that the number of driv- who the insurance company is, place in the territory covered by deposit box as part of your com- declare the regulations void. ing hours will be reduced to nine, the limits, the types of coverage the policy. This is also where you pany’s permanent records because “The appellate court gave the total number of working hours and the premiums. It also con- find the insurance company’s duty many times neither the brokers FMCSA a road map that will lead will be reduced to 12, and the total tains policy numbers, policy peri- to defend a lawsuit. nor insurance companies retain it safely to judicial approval of new number of rest hours increased to ods, deductibles and the type of The next important section is old policies. hours-of-service regulations. How- 12 — at least 10 of which have to insurance plan, including addi- the exclusions section. Under this ever, as I read that map, it leads to be taken in a single block. tional insureds. section there will be two cate- Thomas D. DeMatteo is also an only one place: fewer hours of both The motorcoach industry The next section generally gories: (1) property excluded, and adjunct professor at Hamline driving and total work time for escaped the new hours-of-service contains the agreement of the (2) perils excluded. Some exam- University School of Law in truck drivers. The whole point of rules. It may not be so lucky next insurance company about what ples of property that is excluded St. Paul, Minn. changing the old regulations was to time if the FMCSA decides address the problem of driver Congress wanted all over-the-road fatigue and in the court’s view the drivers to drive fewer hours. Footnote: Practical Risk Management, ARM Tech, Vol. 1 (1998)

How to contact us: ISSUE NO. 37 To submit or report news, To contact the United Motorcoach Jeff Polzien Red Carpet Tours Letters to the Editor, articles: Association: Oklahoma City E-mail: [email protected] Call: (800) 424-8262 A PUBLICATION OF THE UNITED MOTORCOACH ASSOCIATION Robert L. Quick Fax: (877) 510-5598 or go to: www.uma.org Staff Advisory Board Quick-Livick Inc. or (877) 510-5602 Stauton, Va. To e-mail advertisements Mail: 717 West Pierson #160 or photographs: Editor & Publisher Alex Allen Todd Holland Tom Ready Phoenix, AZ 85013 Victor Parra Amador Stage Lines Ramblin' Express Ready Bus Lines E-mail: [email protected] Sacramento, Calif. Colorado Springs LaCrescent, Minn. Call: (602) 242-7361 or upload at www.jezac.com/uploads Sales Director Senior Editor Bob Brisman Robert Hume Bill Rohrbaugh West Point Trailways Travel Mates Trailways Bill Rohrbaugh's Charter Services To advertise or to mail To subscribe or inquire Johnny Steger Bruce Sankey Vails Gate, N.Y. Harrisonburg, Va. Manchester, Md. advertising-related materials: about your subscription: Government Editor Art Director David Brown Daryl G. Johnson Brian Scott Call: Johnny Steger Call: (602) 242-7361 Holiday Tours J & J Charters Escot Bus Lines (602) 980-0840 Norman Littler Mary E. McCarty Randlemann, N.C. Crosby, Texas Largo, Fla. To send subscription orders E-mail: [email protected] or changes of address: Editorial Assistant Associate Editor Bob Foley Godfrey LeBron John Silvanie Mail: Post Office Box 12903 ABC Companies Paradise Trailways Suburban Charter Services E-mail: [email protected] Tara Sheehan Ellen Balm Faribault, Minn. West Hempstead, N.Y. White Plains, N.Y. Tempe, AZ 85284 Fax: (877) 510-5602 To complain: Accountant Editorial Assistant Steve Haddad Joan Libby Alan Spachman or (877) 510-5598 Carl R. Bieber Tourways Cavalier Coach National Interstate Insurance Co John Giddens Amy Stalknecht Call: (602) 242-7361 Mail: 717 West Pierson #160 Kutstown, Pa. Boston, Mass. Richfield, Ohio E-mail: [email protected] Phoenix, AZ 85013 Rick Hillard Warren Miller T. Ralph Young Tri-State Tours Pacific Coach Bus Service Young Transportation ©2004 by the United Motorcoach Association. Reproduction in whole or in part Galena, Ill. San Francisco, Calif. Ashville, N.C. without written permission is prohibited. BUS & MOTORCOACH NEWS — September 1, 2004 — 9 DELIVERIES ABC Companies supplies CUSA with 44 coaches DALLAS — CUSA, the start- up company that purchased the western and south central regions of Coach USA, has added 42 new Van Hool coaches, plus two ABC- brand midsize buses. S&S Coach Company Thirty of the Van Hools are C2045 models and have been Lexington, Ohio delivered to CUSA Las Vegas, where they are being used to trans- S&S Coach has taken delivery family-operated company, headed port U.S. Department of Energy of a new 2004 MCI D4000 inter- by Earl and Margaret Swigart, employees to and from one of city motorcoach. provides charter service to desti- DOE’s Nevada test facilities. John Busskohl, executive vice president, West Coast CUSA (left) and Clint Guth, account executive, ABC Companies, Western Region The enhanced 2004-model has nations throughout North John Busskohl, CUSA execu- National seating for 47 passengers America. tive vice president for the West dows, and Monogram flush-type ABC to develop and complete the and is equipped with a lavatory, The staff also includes the Coast, said a primary reason Van recirculating toilets. equipment specifications. and a REI A/V system with six Swigart’s daughter, Stephanie, who Hool C2045s were chosen for the Two of the coaches are lift • CUSA Long Beach, man- monitors, public address system is an administrative assistant, and contract was their state-of-the-art equipped and have Amaya seats, aged by Dave Dwight, added four with 16-channel cordless mike, and another daughter, Katherine, who Carrier-Sutrak integrated HVAC while the remaining non-lift Van Hool T2145s and four C2045s. AM/FM/CD player. joined the company this summer. systems. He said it was imperative coaches are fitted with Van Hool • CUSA Sacramento, man- The coach also is equipped S&S operates an all MCI fleet the climate-control systems be seating. aged by Daniel Eisentrager, added with a Caterpillar C13 engine with of three 45-foot coaches and five capable of handling the extremes of Other branches of CUSA also two of the ABC-brand mid-size ACERT technology, Allison B500 40-footers. One of its coaches is lift Nevada’s harsh desert climate. completed purchases of Van Hool coaches — one of which is lift transmission, Jake Brake, RCA equipped. It plans to added a ninth All 30 of the C2045 coaches and ABC coaches: equipped. flooring, Carrier A/C system, dual coach later this summer. are equipped with Detroit Diesel • CUSA Phoenix has added Dallas-based CUSA LLC is Bosch alternators, and National All S&S coaches are driven by Series 60 engines, Allison B500 four Van Hool T2145s — two of one of the nation’s leading driver seat. The overhead luggage professionals, who undergo exten- transmissions and Goodyear tires. which were wheelchair-equipped. providers of motorcoach services. compartment is enclosed. sive pre-employment testing and The coaches were reconfigured to Ron Waller, general manager of The company operates in 9 states S&S Coach specializes in pre- training. The drivers also partici- seat 49 passengers, with roller-type CUSA Phoenix, was instrumental and 17 markets and operates formed group transportation. The pate in annual training sessions. curtains installed at the side win- in the purchase and worked with roughly 1,650 units.

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returning to the U.S. through some Border crossings inspection stations, including the CONTINUED FROM PAGE 1 one in El Paso, can be a problem. 20th century’s 10 at night and you can get right “Some times it is a hassle to get through, while other times of the through. They’ll remove panels on buses featured day you might find 35 buses waiting the bus, recheck all of the passen- in line and you have to wait your gers and go through all of the lug- in new archive turn,” said Greg Hanson, safety gage and that can delay you for two manager at Sundance Stage Lines or three hours,” he said. SPOKANE, Wash. — High- in San Diego. While getting into Mexico can way buses of the last century are U.S. customs officials have be quick and easy, that’s usually not the focus of the latest photo book added new lanes at some border the case for U.S. coaches traveling from William A. Luke, the North crossings in an effort to ease the sit- deep into Mexico. They get American bus industry’s best- uation, but the security checks still stopped regularly, according to known historian. add to the crossing time. some operators. Luke and co-editor, Linda Hanson said that getting into “When you cross the border Metler, a former production Mexico from California usually is you are legal and cleared to enter manager at Bus Ride magazine, pretty much hassle-free and on a the country,” said Labrado. “But have selected more than 300 bus good day can take less than five along the way every little hick photos for their 160-page book, minutes. “Usually you just roll up, town will stop you on the pretense called Highway Buses of the 20th open up the luggage bin so they can that something is wrong with your Century. look inside and then roll away,” he license or something is wrong with The book has 11 chapters of said. “The longest delay is usually your coach.” historical information, facts, trivia waiting for an inspector to come and photos, many of which have over to the coach.” The reason? never been published before. Returning to the U.S., how- Labrado says the stops are made Buses pictured in the book are ever, is much more difficult, he so an agent can hit on the driver for from many of the important man- said, noting that passengers have to a bribe. “We end up paying them a ufacturers of the 20th century, unload and cross the border on little something, too, otherwise including Aerocoach, Beck, foot, passing through an inspection they’ll hold you up and it will delay Eagle, Fageol, FitzJohn, General center where they are quizzed and our trip,” he said. Motors, Motor Coach Industries, their carry-on luggage searched. Wallenmeyer said his drivers Prevost, Reo, Van Hool, Western The coach, meanwhile, gets a close have the same experience as they Flyer, White, Yellow Coach and William Luke, is a long-time bus directly from the editors. The examination by inspectors and, fre- travel south into Mexico. “There others. There are big buses, small industry publisher, editor, writer price is $28 in the U.S.; buyers in quently, drug-sniffing dogs. are some guards that are going to ones, vans and specialty vehicles. and historian. He founded and Canada and other countries In Arizona, border crossings in give you hints they want a few dol- Greyhound and Trailways published Bus Ride magazine from should add $4 for postage. both directions have been going lars or they’ll hang you up a little coaches also are pictured, along 1965 to 1997, and has published Orders may be sent to: smoothly and delays generally have bit,” he said, adding that drivers with buses operated by pioneer at least eight other bus industry William A. Luke, West 2627 not been unreasonable, reports to usually oblige in order to speed up operators and many contempo- photo archives. Providence, Spokane, WA 99205. 1 Steve Wallenmeyer, charter coor- their trip and avoid possible prob- rary buses. Luke’s newest softbound, 8 /2- For additional information, dinator for Gray Line Tours in lems. “But that’s been going on for The book’s lead editor, by-11 inch book is available e-mail: [email protected]. Tucson. a long time,” he said. However, he said if traffic is Crow said crossing into Canada three hours. “People remember the regulations, permits and other they are all American or Cana- heavy or a customs agent is having has become even longer this sum- 30-minute delays, but they really transportation matters, but only a dian,” said Crow. “If the driver or a bad day or is in a bad mood, mer because unionized customs remember those three-hour ones,” few complaints about delays getting tour guide has done a good enough delays of at least an hour can easily agents have been staging occasion- he added. into Canada. “Some are telling me job, the border guy might say fine occur. “There are so many factors al slowdowns as part of a labor dis- If the inspectors are not con- that it takes longer to get back into or walk up and down the aisle look- with security now, if the inspectors pute they are having with ducting a slowdown, the crossing the U.S., but nobody blames them ing at identifications and then send feel nuts or if they just received to a Canadian officials. into Canada generally takes about for that,” he said. them on their way.” memo about something, then “They’ve created some long 30 minutes, about the same amount If the driver has all of the nec- While the operators don’t they’ll drag off all of the passengers lineups that are adding to the woes of time it takes to get into the U.S. essary paper work in order and has appreciate the hassles and delays and bring on the dogs, which will of getting across the border,” he from Canada. “That’s acceptable, prepared the passengers so that that do occur at the border cross- delay us,” he said. “But usually we said. “I guess they feel they can get although we would much rather see they, too, have their identifications ings, they all seem to be accepting have no trouble and not too many more salary, more benefits and bet- it back to the five or 10 minutes it and any necessary travel papers at them as part of doing business in extended delays.” ter work rules if they inconven- used to be,” he noted. the ready, crossing in either direc- other countries. Labrado said crossing the bor- ience the world.” Crow said the association gets tion usually goes smoothly. “Gen- “It’s not such a problem that der into Mexico usually goes pretty Some of their actions, he said, numerous telephone calls from erally, the border official comes on tours are being canceled,” said well and takes little time, but have resulted in delays of up to U.S. carriers about Canadian rules, the coach and asks the passengers if Crow. BUS & MOTORCOACH NEWS — September 1, 2004 — 11 INDUSTRY NEWS MCI relocates Montreal, Orlando support centers SCHAUMBURG, Ill. — 3328]. Hours of operation are 6:30 in Orlando. Currently, MCI’s new facility has undergone exten- The new telephone number is Motor Coach Industries has moved a.m. to 11 p.m. weekdays and by Florida center is in Clermont. sive remodeling and includes a (407) 246-1414 or (800) 390-0287. and enlarged its Montreal sales and appointment weekends. The new facility includes six driver’s area and parts counter that Hours of operation are 8 a.m. to 11 service center and is transferring its MCI’s new Florida facility, service bays, a bus wash and lava- has more than 1,500 in-stock parts. p.m. weekdays. Orlando support center to expand- which opens Monday, Sept. 13, will tory service. It offers repairs, rou- The Orlando facility also Both service facilities are ed quarters. The relocations will be conveniently located off Inter- tine maintenance and warranty includes MCI coach sales for the equipped for service work on all accommodate increased business in state 4 at 3718 L.B. McLeod Road service. The building housing the southeastern United States. types of motorcoaches. both regions. MCI’s new Montreal branch opened Aug. 23 at 1400 Rue Barre in downtown Montreal, near the Bell Center and Montreal’s downtown line-haul bus terminal. The 32,000-square-foot facility is three times larger than MCI’s for- MOTORCOACHMOTORCOACH LIQUIDATIONLIQUIDATION mer location in St. Hubert, and includes a paint booth. It will serve as MCI’s major collision, paint and repair facility in Canada. LARGELARGE SELECTIONSELECTION OFOF More than 1,500 parts are available for delivery or installa- tion. A driver’s lounge has been added as well. New and pre-owned MOTORCOACHESMOTORCOACHES && BUSESBUSES coach sales for eastern Canada also have relocated to the new facility. The new telephone number is (514) 938-4510; the toll-free number remains the same [(800) 663- Trailways to require DOD okay FAIRFAX, Va. — The Trail- ways Transportation System has announced it will now require its member operators to obtain or maintain the U.S. Department of Defense approval rating for suppliers LOCATED IN VANCOUVER & MONTREAL of personnel ground transportation. • (1) 1998 MCI D3, Detroit Series 60, Allison Trans., 47 seaters, 6 Monitors, P/A Systems, A/C, Restrooms. Trailways’ Chair Bill Steele said • (1) 1993 MCI DL3, Detroit Series 60 Engines, Allison Trans., 55 passengers, kneeling bus, 6 Monitors, P/A Systems, the policy change reflects the organization’s commitment to passen- A/C, Restrooms. ger safety and the continuing • (2) 1998 MCI EL3, Detroit Series 60 Engines, Allison Trans., Monitors, P/A Systems, A/C, Restrooms. threats of terrorist attacks. • (4) 1996 MCI D3, Detroit Series 60 Engines,Allison Trans., 47 passengers, kneeling bus, 6 Monitors, P/A Systems, “Passenger safety has been a A/C, Restrooms. hallmark of Trailways’ service • (1) 1994 MCI D3, Caterpillar Engine,Allison Trans., 47 passengers, kneeling bus, 6 Monitors, P/A Systems,A/C, Restrooms. throughout our nearly 70 years of • (5) 1996 Prevost H3-45, Detroit Series 60 Engines (some with engine brake),Allison Trans. 56 passengers, kneeling bus, 4 existence,” said Steele. “The recur- Monitors, P/A Systems,A/C, Restrooms. ring and menacing threats with • (1) 1994 Prevost H3-40, Detroit Series 60 Engines,Allison Trans., 48 passengers, 3 Monitors, P/A Systems,A/C, Restrooms. which we all now live with have • (2) 1988 MCI 102-A3, Detroit 6V92, 5 speed trans., 47 passengers, 2 Monitors, P/A Systems,A/C, Restrooms. prompted us to take this action.” • (1) 1985 MCI 96-A3, Detroit 6V92, 5 speed trans., 47 passengers, 3 Monitors, P/A Systems,A/C, Restrooms. More than two-thirds of the 66 Trailways-branded companies • (2) 1988 102-C3, Detroit 8V92, 5 speed trans., 47 passengers, 3 Monitors, P/A Systems,A/C, Restrooms. already have DOD-approval rat- ings. Companies that have not yet If you should have any questions regarding the detailed received DOD approval will work with Trailways’ military liaison, information of any of these coaches, please feel free to Beverly Cox, to achieve acceptable call. Also to make an Inspection appointment, call: standards in coming months. For companies that want to Bert Jones affiliate with Trailways in the future 818-884-3747, ext. 355 or 818-621-3227 but do not have DOD approval, “conditional” membership status will be granted until the company’s operation has been granted the GREAT AMERICAN GROUP® appropriate DOD-approval status. ® WHOLESALE & INDUSTRIAL SERVICES 12 — September 1, 2004 — BUS & MOTORCOACH NEWS INDUSTRY NEWS cantly from earlier forecasts. understate the real world. West tinued legal problems of Russia’s trialized nations, has raised its fore- Diesel fuel Federal energy bureaucrats expect Texas crude has traded on domestic largest oil producer (Yukos), cast for oil demand this year and CONTINUED FROM PAGE 1 West Texas Intermediate Oil will markets at around $50 a barrel in OPEC’s apparent lack of excess next. revised upward again given the oil average about $41 a barrel (revised recent weeks. production capacity, and increased The IEA said oil demand this market surge of recent weeks. The up from $37) in the third quarter One thing is clear, however, the worldwide oil demand. year would average 82.2 million national average price of retail on- and then average $39 per barrel latest price increases result from a barrels a day, 700,000 more than a highway diesel stands above $1.82 (revised up from $37) in the fourth busload of factors, including oil Increased demand July estimate, after changes to his- per gallon, an all-time high. quarter, after averaging $38.35 in market fears of increased global ter- torical data. Next year, oil use The International Energy The EIA crude oil price projec- the second quarter. rorism, worries about the reliability would average 84 million barrels a Agency, the oil adviser to 26 indus- tions also have been raised signifi- That forecast appears to badly of oil supplies from Iraq, the con- day, also 700,000 more than earlier forecast. The agency said it has underes- timated oil use for years and is now IT’S NOT TOO LATE.... recognizing that demand in an annual review. The change comes TO GET THE EARLY BIRD REGISTRATION RATE FOR from higher-than-estimated use in MOTORCOACH EXPO 2005! WE’VE EXTENDED THE nations outside the Organization for Economic Cooperation and DEADLINE SO ACT NOW! Development. Most people also like to blame By filling out the registration form below and faxing it to us by September 3rd, you’re guaranteed the higher gasoline and diesel fuel best rate for the best show in the industry! prices on the greedy oil companies. The problem with doing that, of Speedy Expo Registration Form course, is that oil companies have always been greedy. Their greed is nothing new. First Name Last Name Badge Name (First or Nickname Only)

Company Name Global slowdown? The Wall Street Journal reported Mailing Address City State Zip Country that record oil prices are pushing stocks and technology spending Phone Fax Email down around the world and are Hotel Confirmation Number (receive $25 off each registration by staying at the host hotel, The Las Vegas Hilton) casting doubts on the global economic outlook. Industry Role A global slowdown is an added [ ] Operator ~ Motorcoach owner, operator, or staff person who is an active part of a motorcoach company recognized by the USDOT. worry for the United States because [ ] Travel Partner ~ Companies that are involved in the travel and tourism market - hotels, destinations, rest stops, etc. a spending spree by domestic con- [ ] Non-Exhibiting Supplier ~ Companies that sell/supply to the notorcoach industry but are NOT exhibiting at Motorcoach Expo 2005 sumers is winding down, and economists had counted on higher exports to help keep the expansion Registration Rates on track, the Journal said. Stephen Roach, chief econo- [ ] Operator: $200 [ ] Travel Partner: $225 [ ] Non-Exhibiting Supplier: $400 [ ] Spouse: $150 [ ] Child: $75 mist for Morgan Stanley, told The Washington Post that the United Payment Information States would likely fall into recession if oil prices hover near $50 a [ ] American Express [ ] Visa [ ] Mastercard [ ] Personal Check barrel for three to six months. A recent study by the National Credit Card Number:______Expiration Date:______Energy Assistance Directors’ Asso- ciation found that if the price of oil Cardholder’s Name:______Signature:______hits $50, households would see their weekly costs rise by an aver- Make Checks Payable to: UMA Motorcoach Expo age $14.80 per family. Please fax credit card payments to 703.838.2950. If you have any questions ,please call 1.800.424.8262 However, Thorsten Fischer of or visit www.motorcoachexpo.com for further information. Economy.com told The Atlanta Journal-Constitution that unless there is a major disruption of sup- Motorcoach Expo 2005 is shaping up to be the best Expo ever! We are plies, oil prices anywhere near $50 busy putting together a show floor that will feature all the newest are “unsustainable.” industry products and services, world class education sessions featuring Adjusted for inflation, the price of oil remains far below a 1981 timely marketing, operations, and financial information you need to run peak, when the level was equiva- your business successfully, and exciting evening events designed to help lent to more than $72 a barrel in you network in a relaxing atmosphere. Set against the backdrop of today’s dollars, John Felmy, chief exciting Las Vegas, you won't want to miss the 21st annual economist at the American Petro- Motorcoach Expo 2005! leum Institute told the Post. Meanwhile, the Bush Admin- istration is urging Congress to pass the president’s energy bill to make the economy less dependent on foreign oil. BUS & MOTORCOACH NEWS — September 1, 2004 — 13 INDUSTRY NEWS Hurrican Charley many of their neighbors. They suf- Several coach companies re- they took precautions in advance prior to the storm; Davis of Davis fered mostly what he called a lot of ported their employees, like the of the storm. Typical were the com- Tours said they helped bus airline CONTINUED FROM PAGE 3 cosmetic damage. “At every corner Matthews and Worthingtons, had ments of Kat Feder, general manag- passengers that had flights diverted Gorda, which was at the absolute there is just total devastation. … homes damaged or destroyed. er of American Coach Lines in to Ft. Lauderdale, and Travel epicenter of the hurricane. Houses are completely gone. … “Some of our employees suf- Orlando. Lovers Tours & Cruises in St. Matthews and his wife, Lynne, There are no traffic lights. No fered significant property damage,” “We parked the vehicles tight Petersburg and other companies were in their home as the hurricane power anywhere. … Condos took said Mark Konttinen, chief execu- together and on the East side of the reported they were helping trans- leveled much of Punta Gorda with the biggest hit. Anything above the tive of American Coach Lines in building (opposite the wind), and port emergency repair crews to its 145-mile-per-hour winds, and first floor didn’t survive. … It’s Lake Worth, Fla. “We’ll do our best secured everything inside and out- Punta Gorda and other hard-hit the Worthingtons returned home a going to take a long time to get to assist them.” side the building. Our front gate areas after the storm. Such shuttle couple days after the storm blew back to normal.” Maria Bankemper said one of sprung and one piece of fence blew services are expected to continue through. Worthington said he was grati- her drivers, whose home in Port down,” she said. for another month or more. “The Matthews lived through fied by all of the effort to clean-up, Charlotte took a direct hit that A number of operators reported The timing of the hurricane it,” said Pete Worthington in a restore and rebuild. He said there removed its roof, “was stuck in our helping move thousands of people added to the economic damage. It phone interview. “They experi- were crews from North Carolina, Sarasota office and unable to travel before and after the hurricane hit. struck on the weekend before the enced it first hand and are pretty Georgia, Texas and other states due to the warnings. He’s lucky he “We have spent Saturday, first day of school, normally one of shattered by the experience.” Ef- working to re-establish electrical didn’t travel because his home was Sunday, Monday and Tuesday mov- the busiest weekends of the year for forts to contact the Matthews and telephone service. destroyed,” she said. ing thousands of passengers who many Florida coach operators and directly were unsuccessful – their But the thing that warmed his The driver and other Cruise were stranded in Orlando, Tampa their drivers. phone service was knocked out. heart the most, he said, was seeing Connection employees were dis- and other Florida locations, and The erratic nature of Hurricane At one point during the storm, a police car from Homestead, Fla., placed by the storm. “As a compa- have had many calls from the mili- Charley even caused problems. the double front doors of the patrolling his neighborhood. ny, we are assisting our employees tary to mobilize people to various “We thought Charley was headed Matthews’ home blew open, and Homestead was ground zero for in whatever way we can at this locations,” said Ms. Feder. “Our for the Tampa Bay area and loaded it took the three people in the Hurricane Andrew in 1992, the point,” she added. biggest challenge has been commu- a bus up with friends and family house an hour to get them closed, most destructive hurricane in U.S. Scott of Escot Bus Lines said his nication because many of the cell and headed off to Kissimmee,” said said Worthington. Had they not, history. “They know what it’s like,” company’s Orlando manager, Beau systems, land lines and direct-con- Barac Wimberly, president of the house would have been he said. Langford, suffered damage to his nect lines have been down or inter- Travel Lovers Tours. “Unfor- destroyed. The heaviest of the Twenty-five of Florida’s 67 home, and “we have a few drivers mittent. This makes driver contact tunately, it did not protect us but buzz-saw winds lasted more than counties were designated federal that live in Orlando and the Polk difficult at best. We are working rather put us in harm’s way, as 1 2 /2 hours. disaster areas in the wake of County area that sustained damage together as a team though and Charley headed directly through A few days after the disaster, Hurricane Charley. Officials esti- as well. Not total losses, but major count ourselves very lucky,” she Kissimmee.” Worthington said of his friends: mate Charley caused at least $11 inconvenience and expense added. Wimberly said they were “They’re doing well now.” billion in damage to insured homes nonetheless.” Scott of Escot Bus Lines said his lucky, however. The coach and its Worthington said he and the alone. Total damage may exceed All coach companies contacted company provided evacuation passengers were not harmed in any Matthews were lucky compared to $25 billion. by Bus & Motorcoach News said services in the Tampa Bay area way. 14 — September 1, 2004 — BUS & MOTORCOACH NEWS INDUSTRY NEWS managed to convince lawmakers to coach property tax, but expects until we talked to him about it and companies. “Our profit margins are Thrasher draft another bill that would opposition to the sales tax measure. now he’s trying to get it rectified, so small that these kinds of expens- CONTINUED FROM PAGE 1 exempt motorcoaches from being “That’s going to be controversial which we hope will be done by es can hurt,” he said. “Although that would be an subject to state sales taxes. Sales and a little tougher,” he acknowl- next session,” Thrasher said. Premiums for motorcoach busi- increase from before, it would get taxes on new motorcoaches, which edges. “It remains to be seen if we He warned that the charter ness insurance in Alabama doubled them more in line with what other are either nonexistent or much are going to get that done or not, business would never be the same if two years ago and then went up states are charging and help pre- lower in nearby states, can set back but we are going to try.” transit agencies get more into char- another 20 percent last year before vent the state from losing money,” an operator in Alabama as much as Nationally, the association has ter work. “We can’t compete when tapering off this year. At the same said Thrasher. $17,000 for a new $400,000 coach. been in the thick of the battle in the federal government is funding time, fuel costs have jumped to The proposal currently is in “Add that to the property tax Congress over efforts that would our local transit authorities and record highs, forcing most compa- legislative committees and is being and you really can’t afford to buy a allow transit agencies to expand we’re not getting anything,” he nies in the state to add a surcharge readied for presentation to law- new coach any more,” Thrasher their ability to do charter work in maintained. of 3 to 5 percent to their fares. makers when they open their 2005 emphasizes. “It has become almost competition with private motor- Despite what he called pretty “We’ve tried to explain to our session in February. impossible to afford one.” coach carriers. intense work ahead, Thrasher customers that the surcharge is only The association also got lawmak- To get around the extra Thrasher said the group has holds out hope that the two tax to cover what we have been hit ers to write a bill that would remove expense, he said many operators are hired consultants who not only are issues and the transit concerns will with and is not an extra profit for motorcoaches from the state proper- looking at leasing coaches rather experts on motorcoach and transit be resolved before too much dam- us,” he said. “Most of them under- ty tax system entirely, but such a step than purchasing them. “And that issues, but also who have worked age is done to motorcoach opera- stand that because they’re paying would require voters to approve a costs you more money in the end closely for years with Alabama tors in Alabama. “If we get those higher fuel costs, too.” constitutional amendment, reducing because you are not investing any- Republican Sen. Richard Shelby, handled in the proper manner, To help sell their service to cus- its chances of succeeding. thing in your business,” he said. who has taken up the cause for the then we will have accomplished tomers, Thrasher sees operators turn- In addition to addressing the Thrasher sees support from law- industry. “Sen. Shelby said he did- what the association was formed for ing to more marketing programs. property tax issue, the association makers on reducing the motor- n’t have a clue this was going on and it will make us much stronger For Thrasher, that means hit- down the road,” he said. ting the television airwaves, some- Meanwhile, even as the Ala- thing he’s done in the past for his bama association continues to grow, company’s line runs to casinos in the organization is aggressively Mississippi. But his newest commer- BusConBusCon ExpoExpo 20042004 seeking more members so it pro- cials are directed toward the charter vides a unified push for the better- and tour aspect of his business. Navy Pier, Chicago, Illinois ment of the industry. “We have “The ridership on our casino most of the major bus operators, runs jumped tremendously after we but not all of the smaller ones,” he ran television ads, and I think they September 28-30, 2004 said. “We want to make sure all of will work now for our charter and the legitimate operators are mem- tour business as well,” he said, bers so we all can work for the good adding that he’s been spreading the of the cause, and that cause is to word to other operators about the stay in business.” advantages of using television as See the The association has 131 mem- part of new marketing programs. Greatest Variety bers, including 24 motorcoach Meantime, business is up in the and Number of charter and tour operators and 97 state, according to Thrasher, who associate members. noted that his own company saw Buses in Thrasher pointed to insurance only a small and temporary down- One Place! rates and fuel costs as other key turn after the 9/11 terrorists attacks issues that are creating problems for and steady increases since then. • Low Floor operators in the state and across the “We’re having a great year,” he • Tour Coaches country. Both costs are at record declared. “So, as far as the motor- highs, he said, a situation that is coach business has been going in • Paratransit hurting the bottom line of most Alabama, it has been very healthy.” • Shuttles • Motorcoaches • Transit • Cut-Aways Florida tourism agency • Trolleys • Limo Buses pays big for Web address • Chassis TALLAHASSEE, Fla. — Visit ago. “We saw it partly as a defen- Florida Inc., the state government’s sive move because this is our PLUS nonprofit tourist marketing agency, brand,” said Bud Nocera, chief • Hundreds of Exhibitors has purchased the online address executive of the agency. “We think • World Class Education that bears its name. The price for it will become far more valuable • Network with fellow www.visitflorida.com was $186,000, over the next five to 10 years.” bus enthusiasts the St. Petersburg Times reports. The agency’s Web site, which Agency officials would describe contains vacation planning infor- For more information visit the seller only as a New Jersey en- mation, has been FLAUSA.com www.BusConExpo.com trepreneur who had been using the ever since Visit Florida decided to or contact us at domain name as a drawing card for use it to promote its trademarked 4

0 links to other sites maintained by logo, which features the three-letter .

3 800-576-8788 5 - companies that sell Florida travel. state abbreviation in block letters. 7 0

S The agency had made several The logo, however, has fallen C B attempts over the last half-dozen far short of becoming a household years to acquire the Web name and word. The logo and old domain didn’t have much choice but to pay. name will continue to work online That’s because the domain name indefinitely. But in the future, was in use when state tourist mar- FLAUSA will be used as a promo- keters decided to name their tional logo while visitflorida.com is agency Visit Florida seven years promoted in all advertising. Loaded with everything except the high price tag.

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