March 1, 2007

WHAT’S GOING ON IN THE BUS INDUSTRY FTA proposes major overhaul of charter bus rules WASHINGTON — The Fed- began in May — to come up with a representatives from public transit during the advisory committee To accomplish that, a team of eral Transit Administration has pro- new set of rules that would end agencies, private bus companies meetings.” FTA attorneys, lead Chief Counsel posed a complete revamping of the decades of fighting between public and trade associations representing The rules proposed by the fed- David Horner, took the advisory regulations that prohibit public transit agencies and private bus both, reached consensus on much eral agency that sends billions of committee’s recommendations and transit agencies from providing operators. of the proposed regulatory lan- taxpayer dollars annually to public the FTA’s own thoughts and mold- charter bus service. Many of the proposed revisions guage. transit agencies across the U.S. ed them into proposed regulations The rules overhaul is contained were developed by the Charter Bus Where the advisory committee were specifically developed to stop that retool nearly every aspect of in a 55-page “Notice of Proposed Negotiated Rulemaking Advisory members could not agree, the FTA transits from using taxpayer-paid- the charter rules. Rulemaking” the FTA issued last Committee that met monthly be- has stepped in to serve as arbitrator for buses to compete unfairly with month. tween May and December to craft and has proposed revisions that it private bus operators, and to do Gone, gone, gone The proposal is a major mile- recommendations for the FTA. says are based “on the open and away with old rules that have been For example, the new rules stone in a tedious process — that The committee, made up of informed exchange that took place a constant source of friction. CONTINUED ON PAGE 15 þ Truckers warming up to ’07 diesel engines Early reports from the trucking over-the-road applications and industry indicate the ’07 reduced- short hauls with various cus- emissions diesel engines are per- tomers. forming, well, just fine. Penske provided early feed- Take Penske Truck Leasing, back on component changes, as which has one of the largest fleets well as design issues pertaining to in North America with more than the placement of particulate traps. 200,000 heavy-, medium- and “With all the engines we’ve light-duty trucks. been running,” Mike Hasinec, While other truck operators Penske’s vice president of mainte- were — or are still — debating nance systems and support told whether to buy even one Class 8 one trucking publication, “we truck with a new EPA-certified en- haven’t seen any issues we’d con- gine, Penske is knee-deep in 2007 sider alarming.” engine-performance checking. As a result, Penske plans to The company’s maintenance purchase 7,000 to 9,000 Class 8 operation began evaluating and trucks with the cleaner-burning en- testing preproduction ’07 engines gines from various manufacturers as early as October 2005, running CONTINUED ON PAGE 12 þ A forklift operator loads new Detroit Diesel engines into a tractor-trailer for shipment to a truck manufacturer. Bus rental outfit is scrutinized by coach operators ROME, Ga. — A new breed of 25- and 41-passenger buses to col- Charters in Gainesville, Ga., said are liable for insuring both the coach company it is not subject to competitor for tour-and-charter leges, high schools, businesses, of the issue, which was a major driver and the vehicle. federal regulations that require reg- bus companies is drawing sharp churches, senior groups and others topic of discussion at Motorcoach “They just sign the contract ular bus safety inspections and fre- scrutiny from coach operators in from its locations in Cartersville Expo in New Orleans. just like you and I do when we rent quent driver testing. Georgia who say the new entry is and Rome, just outside of Atlanta. He said that while people who a car,” he said. “In my opinion that puts the not only putting the public at risk It essentially operates like any rent the buses have to sign a con- The dangers of such a practice public at risk and I don’t think the but could tarnish the safety reputa- car rental agency, except it also tract detailing their responsibili- could be astronomical, says Brenda public even realizes it,” she em- tion of the entire industry. offers large and midsize coaches. ties, he believes that most of them Tidwell of Leisure Time Charters phasized. Being closely watched is Auto- “It’s a very, very scary situa- are not reading the fine print in the in Emerson, Ga., who said that She warns that if someone

Max Rent-a-Car, which is renting tion,” Jimmy Cantrell of Daniel’s rental agreement that explains they because AutoMax is not a motor- CONTINUED ON PAGE 16 þ

Bus & Motorcoach NEWS INDUSTRY NEWS March 1, 2007 3 FirstGroup to acquire Laidlaw; what about Greyhound? NAPERVILLE, Ill. – When it tion. Perhaps sold, spun-off or speculation and conjecture. operating companies, including Coach USA and Stagecoach are was announced last month that downsized even more. In article For his part, Greyhound Pres- Greyhound.” ginning up megabus.com in the Britain’s biggest bus company after article there was sentence ident and CEO Steve Gorman con- While it will be weeks before U.S., and there are strong indica- planned to buy Laidlaw Interna- after sentence suggesting Grey- firmed that Greyhound is in limbo. anything concrete develops, that tions that an expansion of mega- tional, the No. 1 operator of school hound wasn’t a good fit with In a message to employees, hasn’t slowed British media and bus.com is in the offing. Currently, buses in North America, much of FirstGroup, the company that pro- Gorman said “no decision has some financial analysts from spin- megabus operates only in the the comment generated by the deal poses to buy Laidlaw for $2.8 bil- been made on Greyhound’s future. ning out scenarios that would have Upper Midwest, with Chicago as focused on Laidlaw’s dogged sub- lion. No decision will be made until the Greyhound being bought by its hub. sidiary, Greyhound Lines. FirstGroup CEO Moir Lock- deal closes. At that point, a deci- Stagecoach Group, the Scottish In a reality check, it should be There was immediate specula- head and Laidlaw executives sion on all key assets will be made parent company of Coach USA noted that Greyhound has never tion Greyhound could be headed remained mum about plans for by FirstGroup. Until then, it will and Coach Canada. been much of a fit with Laidlaw for yet another uncertain destina- Greyhound, helping stoke the be business as usual at all of the After all, the thinking goes, CONTINUED ON PAGE 16 þ New York promises halt to indiscriminate ticketing NEW YORK — Tour and char- indiscriminately, but also handing lem developed when police sent were not adequately versed in greater distances from their desti- ter bus drivers who have been hit out traffic citations and criminal traffic officers from outside motorcoach regulations, which nations to avoid these tickets,” he with parking tickets and other summonses for standing and drop- Manhattan to help control the likely caused the surge in tickets told the mayor. vehicle violations — some of off violations even when coaches growing traffic congestion prob- that the bus drivers received. Additionally, he warned that them criminal summonses — in were in areas designated specifi- lem that has developed in the heart NYC & Company was brought some out-of-state operators could midtown New York City are in for cally for commercial buses. of the city, especially during holi- into the situation after Eyre sent a start avoiding New York entirely as some major relief. Many of the citations came days and special events. letter to New York Mayor Michael a destination for their charter NYC & Company, the city’s during the holiday seasons when “We in New York City have R. Bloomberg asking him to look groups, a move he noted could official tourism marketing agency, many more charters than usual been a victim of our own success into the problem and warning of cost the city millions of dollars. says it has reached an agreement visit the city. in that the city has been incredibly the possible loss of tourism rev- Eyre said he was extremely with the New York Police Depart- The tickets were the topic of congested during these periods,” enue if the issue was not resolved. pleased with the quick resolution ment that should slow the issuance discussions by motorcoach owners Dixon said in a letter to Ronald “Our primary concern is that of the problem. “Nobody could of tickets. who attended the annual gather- Eyre, immediate-past chairman of this activity could result in a ask for more cooperation than Beginning with the 2005 holi- ings last month of both the United the American Bus Association and severe disruption of motorcoach what we received,” he said. day season and continuing into Motorcoach Association and the president of Eyre Bus Service in operations in the city and safe Under the negotiated agree- this year, there have been wide- American Bus Association. Maryland. operating procedures, as drivers ment, the police agreed to: spread reports of New York police Fred Dixon, vice president of Dixon said the traffic officers may be forced to circle the city • Provide in-depth training of not only issuing parking tickets NYC & Company, said the prob- brought in from other boroughs streets or drop passengers at CONTINUED ON PAGE 12 þ

HURRY THEY ARE MOVING FAST! Call your nearby ABC Account Executive today. Wide Selection of 1992-1996 MC-12s Available Now – Priced from $12,500 to $26,500 MIDWEST NORTHEAST SOUTHEAST 800-222-2875 800-222-2873 800-222-2871 Operators are sold on the superior value and condition of these well-equipped, professionally-maintained highway coaches. Plus comprehensive service at 5 convenient locations SOUTHWEST WESTERN nationwide keeps you covered for all your equipment needs. 800-222-2877 800-322-2877 Coach features include: • Integral steering • Streamlined systems designed for • Thermo-Pane side glass simplified maintenance • Late-model air-conditioning system • Goodyear tires • 47 passenger seating • Restroom equipped • 6V92 DDEC III Detroit Diesel Engine www.abc-companies.com • Clean interiors • HT-740 Allison Transmission Used vehicle sold “as is.” No warranties expressed or implied. 4 March 1, 2007 INDUSTRY NEWS Bus & Motorcoach NEWS Groups adopt recommendations on driver cell-phone use A national coalition of school the trade organization that repre- by drivers. It said there were situa- three months after the National NTSB recommendation, proposing bus associations is recommending sents private coach operators in tions where voice communications Transportation Safety Board rec- that school bus drivers also be pro- that school bus operators — both Canada, issued a statement calling between a driver and another party ommended that bus associations in hibited from using cell phones private and public — prohibit their on bus drivers to refrain from using while en route “is necessary in the the U.S. adopt a policy recom- while loading and unloading stu- drivers from using cell phones cell phones to make personal calls interest of passenger comfort, safe- mending that cell phone use by dents. while driving except in emergen- while driving. ty and operational efficiency.” drivers be banned. The NTSB issued its cell-phone cies. The association did not, howev- The American School Bus The policy embraced by the ban recommendation in November, Earlier, Motor Coach Canada, er, call for a ban on cell phone use Council announced its position school bus council goes beyond the following its two-year investigation of the Nov. 14, 2004, crash of a tour coach into an overpass on the George Washington Memorial Parkway in Alexandria, Va. The driver of the Eyre Bus Service coach was talking on a hands-free cell phone and ignored warning signs about the low clearance of the overpass. The NTSB investigation con- cluded with a number of safety pro- posals, with the No. 1 recommen- dation being that bus trade groups and unions representing drivers recommend that their members ban cell phone use by drivers except in emergencies. The American School Bus Council becomes the first associa- tion to announce it had taken action on the NTSB recommendation. The group’s co-director, Pete Japikse, said the council will urge school bus companies and school districts to enact a ban. He said the group also will urge state lawmakers to take action. There are at least a dozen states with laws or regulations prohibiting school bus drivers from talking on the phone. The council, which was formed late last year, was set up to act as a unified voice for the school trans- portation industry. It is composed of the National Association for Pupil Transporta- tion, the National Association of State Directors of Pupil Transpor- tation Services, the National School Transportation Association, Bluebird Corp., IC Corporation and Thomas Built Buses. The council’s goal is to raise awareness of the role of yellow school buses in the education, safe- ty, health and security of school- children. The council has a Web site, www.americanschoolbuscouncil.org. National Interstate increases dividend RICHFIELD, Ohio — Direc- tors of National Interstate Corp. have boosted the company divi- dend to a nickel a share. The first dividend payable at the new rate will be March 16 to shareholders of record Feb. 28. National Interstate is the par- ent company of the motorcoach industry insurer of the same name. Bus & Motorcoach NEWS T March 1, 2007 5

’08 budget request totals Niagara bridges Mo. lawmakers consider $67 billion for USDOT boost U.S. tolls asking FMCSA to allow WASHINGTON — The Bush Carrier Safety Administration, NIAGARA FALLS, N.Y. — Administration has asked Con- which regulates over-the-road bus The U.S. toll rate for buses and young bus, truck drivers gress for $67 billion in fiscal 2008 safety. There is $228 million for other vehicles using the Rainbow, JEFFERSON CITY, Mo. – The recruited as interstate drivers to pay for highway-related con- FMCSA operations and safety pro- Whirlpool Rapids and Lewiston- Missouri General Assembly is con- unless they are 21, and by that age struction and congestion relief; grams, plus $188.5 million for Queenston bridges over the Niag- sidering asking the Federal Motor many young adults have already transportation safety programs, enforcement activities and $7.2 ara River have been raised. Carrier Safety Administration to committed to another career. and to provide the framework for million for security. A total of $32 Canadian rates remain un- adopt a pilot program that would The resolution being consid- reforming the U.S. aviation system. million would go to border changed. allow 19 and 20 year-olds to oper- ered in Missouri notes that a “Our goal is to deliver a trans- enforcement grants. The Niagara Falls Bridge Com- ate interstate commercial motor FMCSA-controlled pilot program portation system that frees all of us The administration proposed mission said it took the action vehicles. for 19 and 20 year-olds “has the to make daily decisions confident public transportation funding of because of the “prolonged weak- A resolution requesting estab- potential of relieving a severe com- we can reach our destinations safe- $9.42 billion for fiscal ’08, which ness in the U.S. dollar.” The lishment of such a pilot program mercial motor vehicle driver short- ly, without worrying about how we begins in October, which is $308 increase is the first since 1998. was introduced in the Missouri age in the (U.S.) and creating will get there, or if we can make it million less than is authorized and “The commission has been suc- House last month. excellent career opportunities.” on time,” said U.S. Secretary of supposedly guaranteed under the cessful in controlling costs to our The issue of lowering the driv- Noted one coach industry exec- Transportation Mary E. Peters. 2005 Safe, Accountable, Flexible, customers, but we have held the line ing age for a CDL with interstate utive: “Recruiting drivers out of Highway spending, the largest Efficient Transportation Equity on the diminished U.S. dollar as authority has been around since high school will eventually pro- share of the proposed U.S. Depart- Act — A Legacy for Users. long as we could,” said Commis- early in this decade. duce a better driver population.” ment of Transportation budget, The American Public Transpor- sion General Manager Thomas In 2001, the Truckload Carriers There also may be a growing would rise about 0.8 percent to tation Association immediately Garlock. “This modest adjust will Association made a strong push to realization among commercial $39.6 billion, according to the said it was “extremely disappoint- permit the commission to continue get the FMCSA to adopt a pilot vehicle insurers that something has American Association of State ed” by the budget request and to be financially stable and proceed program that would, among other to be done, particularly in the bus things, assure a level of safety that sector, where the average age of Highway and Transportation Offi- appealed to Congress to bring the with aggressive physical improve- was equal to or greater than the drivers continues to creep up, cre- cials. The president and Congress funding back up to $9.731 billion. ments to our facilities.” level achieved by commercial ating a completely different set of agreed to the increase in the five- The Bush budget knocked out The new round-trip rate for a vehicle drivers 21 years of age or potential safety problems. year highway spending law passed $300 million in spending for rail two-axle bus going from the U.S. older. But the FMCSA shot down New technology could help two years ago. and fixed guideway transit proj- into Canada and back is $9.50, up the idea. foster the idea. Overall transportation safety ects, cut transit research funding by from $8, and the rate for a three- Some in the commercial vehi- With such systems as on-board funding is put at $20.3 billion. $4 million and reduced the Federal axle coach is now $12.50, up from cle industry believe the idea will cameras, GPS, engine-control Of that amount, $528 million is Transit Administration program $10. Autos went from $2.50 to $3, eventually gain traction because of modules and cell phones, younger earmarked for the Federal Motor funding by $3.2 million. and the rate for five-axle over-the- changes occurring in the truck and drivers can be monitored for road rose from $13 to $17. bus industries. And the measure speeding, following too close and The Whirlpool Rapids and introduced in Missouri (House other unsafe driving practices, plus Interstate congestion relief slated Rainbow bridges connect Niagara, Concurrent Resolution No. 27) hours-of-service adherence. WASHINGTON — The U.S. and Michigan; I-5 in California, Ont., and Niagara, N.Y., while the could be a new kickoff. Additionally, new tests de- Department of Transportation has Washington and Oregon; I-70 from Lewiston-Queenston Bridge links Those who advocate the idea of signed to select drivers that have a identified eight Interstates across Missouri to Ohio; I-69 from Texas Queenston, Ont., and Lewiston, allowing younger CMV drivers say propensity “to do the right thing” the United States where it will to Michigan; I-80 in Nevada and N.Y. it would create greater opportunity will likely see increased use. “All attempt to fast track congestion California, and I-10 from Califor- for both industries to boost recruit- accidents generally have a moral relief. nia to Florida. ing when young people are making component where somebody failed Secretary of Transportation The highway proposals include Idaho ponders early career decisions. Currently, to do the right thing,” observed an Mary E. Peters said the depart- various combinations of expanded slower buses, individuals essentially cannot be industry executive. ment’s new “Corridors of the Fu- capacity, truck-only lanes, in- ture” program provides for trans- creased freight and passenger rail faster trucks Notification system upgrade asked portation planning across state development, and extensive use of WASHINGTON — The Feder- hole that allows some serious traf- lines to help reduce congestion. new technology to keep traffic BOISE, Idaho — The Idaho al Motor Carrier Safety Adminis- fic convictions to go unreported “If we don’t act today, our moving and improve safety. state senate is considering a bill that would lower the speed limit on tration has been asked to amend its and undetected for months. Plus, economy will be facing a standstill Peters said her department will safety regulations to promote great- the hope is that the FMCSA will in the future,” she warned. aggressively push the program by Interstates for buses and autos but increase it for over-the-road trucks. er motor carrier use of so-called promote wider adoption of the The department is advancing accelerating permitting schedules, employer notification systems. notification systems by states. 14 of 38 proposals on eight busy identifying new financing options, The proposed legislation would reduce the speed limit for buses Employer notification system Currently, coach operators and Interstate corridors: I-95 between and promoting innovative project is the term used to described pro- other motor carriers obtain and and passenger cars to 70 mph from Florida and Maine; I-15 in South- delivery methods to “move these grams that allow commercial bus review the motor vehicle record of 75 mph, and hike the speed for big ern California and Nevada; I-80/94 projects from the drawing board to and trucker companies to register each of the drivers they employ and I-90 linking Illinois, Indiana completion faster than ever before.” rigs from 65 to 70 mph. their drivers with state licensing through semi-annual or annual Sen. Tim Corder, who intro- agencies that, in turn, notify the motor vehicle record checks. N.D. lawmaker wants 40-mph Interstate minimum duced the bill, said it would result companies when one of their driv- There are thought to be 10 in fewer collisions by decreasing ers receives a traffic ticket, convic- states that have some type of BISMARCK, N.D. — North Rep. Ed Gruchalla has asked the number of “vehicle interac- tion or change in commercial driv- employer notification system. Dakota’s two interstates have a 75- the North Dakota House trans- tions” caused by vehicles passing er license status. There also are commercial services mph speed limit but no minimum portation committee to endorse a each other on Interstates. Such notification systems al- that provide multi-state employer speed requirement, creating po- bill to set a 40 mph minimum Corder, who owns a trucking low operators to take timely action notification coverage. tential hazards, says a state legis- speed on I-29 and I-94. company, introduced a similar bill to address unsafe driving. The rules change request was lator who wants a minimum Gruchalla is a former state last year but it didn’t make it to the The request to the FMCSA made by the American Trucking speed-limit law. highway patrolman. Senate floor for a vote. seeks to address a regulatory loop- Associations. 6 March 1, 2007 OPINION Bus & Motorcoach NEWS Political ‘Battle is joined,’ says Bus Co-Op founder extortion? By Neil Eisenberg move more passengers, effect more involved? If you’re a broker, then bottom price. The old adage is as Wire service reports say Cali- President/CEO innovation, and are the major cata- call yourself a broker. accurate today as a century ago: fornia Attorney General Jerry VanGo! lysts of change within our industry. Don’t dress up your Web sites “You get what you pay for.” Brown wants the six largest U.S. Sun Valley, Calif. Like most of you, I live and to look as if you operate hundreds If you really want to provide and Japanese automakers to settle a breathe my company every waking of vehicles. customers with the highest quality lawsuit in which the state is claim- The lines have been drawn and hour of every day. Most days I love Don’t boldly proclaim, as one equipment, safety and service, ing millions of dollars in damages the battle joined. don’t use the cut-rate carriers. caused by vehicle emissions of Whether you operate a single ‘As far as I am concerned, (bus brokers) Finally, adhere to the same 10 per- greenhouse gases. motorcoach or 49, you’re facing cent return that truck brokers are Former California Attorney the most serious industry challenge have worn out their welcome unless they federally mandated to. General Bill Lockyer, now Califor- of the day. But, alas, that will cut into your nia’s treasurer, sued the auto com- Simply put, are we — as small- change their business practices.’ obscenely high margins, and crip- panies in September in U.S. District to medium-sized carriers — going ple your ability to throw money at Court in Oakland. Lockyer said he to allow an ad hoc group of bus it, and others, well… but without of the largest brokers does on its the search engines to monopolize a wanted to hold the auto industry ac- brokers to affect changes in our the day-to-day exhilaration and Web site: “We’re not local bus few critical key words. Beware bus countable for what scientists say is industry? pride of seeing my coaches safely owners. We’re not brokers.” brokers there are enough of us their contribution to climate change. Are we going to permit them to and comfortably transporting peo- I say, if it walks like a duck and small- and medium-sized carriers Lockyer’s lawsuit supposedly dictate who will or will not survive ple down the highway, my life quacks like a duck, it must be a to effect change. It would probably marked the first time a state has by virtue of their dubious market- would somehow be less rewarding. duck. be to your advantage to work with sought monetary damages for the ing practices? For those of you who feel the When you speak for your bro- us to effect these changes now, Earth-warming effects of gases Are we to tolerate their sweet- way I do you must take action now. ker brethren, get your stories rather than have the fed’s come in emitted by cars and trucks. heart deals with “shady operators” If not, we will most assuredly straight. One broker vented his and force the issue later. However, it probably won’t be (quoted from Bus & Motorcoach become an industry of mega carri- anger at The Bus Co-Op in his But we operators are realists, the last; 49 other attorneys general News and not condoned by the ers, brokers, and aimless drones editorial by touting internet adver- the money is way too good and the have to run for re-election some author of this article) only to have begging for scraps from the afore- tising sites as a “better deal,” business is way too easy for the time. them (the brokers) blame the carri- mentioned. while another tore into the same vast majority of brokers. We are ers for poor performance? After reading the Feb. 15 issue advertising site in his editorial. simply going to have to use our Political extortion II For me, the answer is “no.” of Bus and Motorcoach News, I For the record, neither The Bus combined strength to oppose the Wisconsin Gov. Jim Doyle has And for those unwilling to say believe it is best to allow the bro- Co-Op, nor any of my colleagues, dictates of these ad hoc brokers. As proposed a tax on oil companies to it, this battle is also with the mega kers even more editorial latitude so have anything against these adver- I and many others see it, we either help raise money for state trans- carriers that have even more power they can take shots at each other tising sites. use one of the national associations portation projects. to squeeze us out of business. and those who legitimately threat- We (carriers) must prominent- as our voice, or move to a new enti- Under Doyle’s too-clever plan, If you doubt the veracity of this en their existence. ly place our operating authorities ty like The Bus Co-Op, which will oil companies would be taxed about allegation, think of how many I am in contact with dozens of on all vehicles and advertising. not allow brokers as members, $1.50 per barrel of oil sold in the well-run companies are no longer operators daily, and not one of Why not have the brokers promi- push to generate Internet and other state and be prohibited from pass- operating since the buyout spree of them buys into the convoluted nently display their authorities business, as well as establish enor- ing the cost along to consumers. the mid-to-late 1990s. Are we in rationalizations, baseless misrepre- online as well? mous buying power for its member The tax would be levied when for another round of buyouts? sentations and shameful rhetoric as Why not post bonds as truck owners. companies transfer oil between one More importantly, what kind of authored by two broker owners. brokers do? Speaking for The Bus Co-Op another or between subsidiaries, or companies might these carriers They are our guests in this indus- Why expose and berate unsus- and VanGo “The Art of Trans- at the point where fuel exits the have their eye on? try, and as far as I am concerned, pecting carriers by not giving them portation,” we implore the federal pipeline for distribution. First, let’s get some facts they have worn out their welcome all pertinent information when government to regulate bus bro- The fee would not apply to 100 straight. unless they change their business booking them? Let your carrier kers in at least the same manner as percent biodiesel or to the ethanol The small- to medium-sized practices. know if alcohol consumption, truck brokering companies. We portion of E85. In addition, oil carriers (49 or fewer buses and Say what you will Mr. Bus potentially destructive passengers are, after all, speaking of trans- companies would be able to deduct motorcoaches) in the United States Broker(s), The Bus Co-Op and any or overtime may occur. porting people, not property. the payments from their federal and Canada are the backbone of other entity trying to derail you is a Don’t profess due diligence in Please contact your association of taxes as a cost of doing business. our industry. We own and operate good thing for our industry. researching your sub-contracted choice and voice your opinion on Won’t Uncle Sam love that? more buses and motorcoaches, So what are the issues carrier when he accepts your rock- this issue. How to contact us: ISSUE NO. 95 Joan Libby To submit or report news, Letters to the Editor, Cavalier Coach To advertise or to mail advertising-related Boston, Mass. articles, news releases: materials: A PUBLICATION OF THE UNITED MOTORCOACH ASSOCIATION E-mail: [email protected] Call: Johnny Steger Marcia Milton (623) 930-8422 or (602) 980-0840 First Priority Trailways Fax: (866) 930-8426 Staff Advisory Board District Heights, Md. Mail: 4930 W. Glendale Ave., Suite 6 E-mail: [email protected] Editor & Publisher William Allen Gladys Gillis Michael Neustadt Glendale, AZ 85301 Mail: 4930 W. Glendale Ave., Suite 6 Sierra Trailways Starline Transportation Coach Tours Victor Parra Call: (623) 930-8423 Glendale, AZ 85301 Sacramento, Calif. Seattle Brookfield, Conn. To contact the Sales Director Senior Editor Larry Benjamin Rick Hillard Jeff Polzien To subscribe or inquire about your subscription: Northfield Lines Tri-State Tours Red Carpet Tours United Motorcoach Association: Johnny Steger Bruce Sankey Call: (623) 930-8421 Northfield, Minn. Galena, Ill. Oklahoma City Call: (800) 424-8262 E-mail: [email protected] Industry Editor Associate Editor Dave Bolen Robert Hume Tom Ready Online: www.uma.org New World Tours Travel Mates Trailways Ready Bus Lines Fax: (866) 930-8426 Ken Presley Ellen Balm Bristow, Va. Harrisonburg, Va. LaCrescent, Minn. Mail: 4930 W. Glendale Ave., Suite 6 To send advertisements or photographs Editorial Assistant Editorial Assistant David Brown Daryl G. Johnson Brian Scott Glendale, AZ 85301 via the Internet: Holiday Tours J & J Charters Tara Sheehan Amy Stalknecht Escot Bus Lines E-mail: [email protected] Randlemann, N.C. Crosby, Texas Largo, Fla. To report corrections: Editorial Assistant Art Director Steve Brown Dale Krapf Michelle Silvestro Call: (623) 930-8421 Brown Coach Krapf Coaches National Interstate Insurance Co. Eric Morales Mary E. McCarty E-mail: [email protected] Amsterdam, N.Y. West Chester, Pa. Richfield, Ohio ©2007 by the United Motorcoach Association. Accountant Bob Foley Godfrey LeBron T. Ralph Young Reproduction in whole or in part without ABC Companies Paradise Trailways Young Transportation written permission is prohibited. John Giddens Faribault, Minn. Hicksville, N.Y. Ashville, N.C. Bus & Motorcoach NEWS OPINION March 1, 2007 7 Coach operator recounts experiences with bus brokers By Dean Golden reach a live person, you are sent Why do brokers try to bully a the worst of the worst from what I In California, where we’re Operations Manager from person to person because the company into their terms or they am hearing. I have been in contact located, there are very strict state West Valley Charter Lines person you are speaking to isn’t will not use them? Is that how the with a dozen different operators rules when it comes to hauling stu- Campbell, Calif. able to help you. broker is supposed to work? who claim they are owed in excess dents. Bus brokers are violating of $20,000 by this broker, with these rules by telling customers First, I would like to commend About Bus Bank ‘Why shouldn’t you some of the bills well over 120 the rules don’t apply because they Bus & Motorcoach News for tack- The Bus Bank is another days past due. are booking through a broker. ling the issue of bus brokers in example of what I would consider Four companies say Metropol- Again, this just shows the broker your last few issues. After reading a bad broker to deal with. The Bus itan Shuttle owes them in excess of as a bus operator does not have any interest in the the various articles, I thought I Bank is endorsed by Lancer $10,000. law, or the companies they deal would respond as an operator who Insurance. We met with one of The Bus Bank has five compa- has dealt with many different bus their people about a year and a half be paid up front nies who claim they’re owed in with. They go out and get the busi- brokers over the years. ago in our office. The presentation excess of $8,000. ness and give it to the coach com- A bus broker is simply some- was very well done and I bought as well?’ And two companies are claim- pany that provides the lowest one trying to make a buck off bus into what they had to offer. I asked ing USABusCharter.com owes quote, with no respect to how long companies. A broker often will the following three questions: them in excess of $5,000. the company has been in business, charge their customers from 5 to 1. Will The Bus Bank adhere to Then there is Transportation To me, it doesn’t matter if what type of coaches they have, or 100 percent — or more — over the our cancellation policy? (They Management Services, known as these claims are accurate or not. It their safety rating. The lowest price we quote them. We see this said “yes” in our meeting.) TMS. just reinforces my belief that any price wins. all the time. I have been told some 2. Will The Bus Bank guaran- We have been doing work for operator who chooses to work them for about four years. Their brokers have a minimum $200 tee if the trip is in the San with a bus broker should be paid Bottom line convention shuttle work is always markup on any trip, meaning a Francisco market, it will only con- up front, and have a copy of a I believe the bottom line is $120 school bus rental would be tact coach companies in the San paid in full and before the event. signed contract. They have been a great company pretty simple: Bus companies priced at a minimum of $320. Francisco market, not go to com- shouldn’t use brokers to get their A bus broker has nothing to do panies out of the area? (They to deal with. BusRates.com business. If all bus companies with the operation of a bus compa- claimed this was the case.) We also did work for them fol- I also want to talk about would stop using brokers we ny; why should an operator be giv- 3. Can The Bus Bank provide a lowing Hurricane Katrina, and like BusRates.com. Glenn P. Orloff of many other companies it was a would not loose customers. The ing them money? A bus broker breakdown of how many bookings Metropolitan Shuttle had many struggle to get final payment from does not make the playing field they have had in the San Francisco negative things to say about them customers would end up calling them. Even though that was really level or fair. If you are not an market? (The Bus Bank represen- (see Feb. 15 Bus & Motorcoach coach companies directly and frustrating, I believe TMS is a fair approved vendor, or a “liked” ven- tative said they would supply the News). eliminate the brokers. company to work with. dor of a bus broker, they will not figures; we never saw them.) I find BusRates.com to be the If a coach company decides to We have had dealings with: call you for a quote. So, they truly When I received the packet to best online place I work with. We work with a broker, it should not • MyBestRide.com aren’t even a broker in my opinion. sign up for The Bus Bank, they joined their site in March 2005, do the work without payment up • CoachQuote.com I am amazed that Edward had all these terms and conditions and since then we have had about front. They collect their money up • USABusCharter.com Telmany (president) of US Coach- we had to agree to or they would 290 inquires for quotes from their • CharterBusAmerica.com, front from their customers; why ways Inc. has taken the time to not use us. Basically, they tell you site, and have booked 86 which used to be CopperTop- shouldn’t you as a bus operator be respond to the articles. (See Nov. how to run your company when trips/tours, which is 30 percent. Tours.com, and others. There are paid up front as well? 15 and Feb. 15 issues of Bus & they book with you, and all your so many brokers for a person to This is a better return of my Bus companies also do not Motorcoach News.) I have person- policies and procedures mean choose from. time, verses anything a bus broker need to offer a lower net rate to ally left 10-plus voice-mail mes- nothing. So, we have decided not can give me. After reading (Mr. bus brokers, or allow brokers to sages for him during the past three to be part of them. Orloff’s) article, it has made me Others’ experience negotiate the price down. There is years that never were responded decide to help out BusRates.com, In recent weeks, I have been in plenty of mark-up tacked on by to. We had booked trips for US Metropolitan Shuttle and give them more tools their contact with many different bus brokers. Coachways but we invariably had As for Metropolitan Shuttle, companies across the U.S., and I online customers can use to help to try to chase down payment they have called us on three differ- determine if a bus company is Finally, when talking directly have been amazed by the number to customers or potential cus- information and trip details from ent occasions, and we have chosen of independent operators that have good or not. tomers, bus companies should add the company. not to do business with them. We chosen to use brokers. And, how There are many Web sites that some type of explanation or warn- It is nearly impossible to get asked for payment up front, before many have been burned by bro- potential bus customers can use to through his phone tree when you the trips went, and they told us kers. see if an operator has a current ing in their sales pitch or e-mailed call his company and try to speak they only pay net-30 days. We MyBestRide.com seems to be registration, has a good safety rat- quotes about dealing with bus bro- to a live person. And, if you do couldn’t agree to that. ing, and has insurance coverage. kers and broker price gouging. New coalition to fight privatization of toll roads WASHINGTON — A coali- Called the Americans for a toll facilities generates revenue at purposes,” Graves, a former gover- interest,” said DeFazio. tion of highway user groups has Strong National Highway Net- great expense to taxpayers and the nor of Kansas, added. Several members of the coali- been organized to battle the trend work, the coalition’s aim is “to trucking industry, and carries po- Supporting the coalition is tion have previously stated their toward privatization or leasing of advance the rights of American tential negative impacts on high- Rep. Peter DeFazio (D-Ore.), strong opposition to the lease or existing toll roads, bridges and motorists to travel on safe, reliable way safety, security and the motor- chairman of the House Subcom- sale of existing toll roads, bridges tunnels to private investors. public roads; maintain a robust ing public,” said ATA President mittee on Highways and Transit. or tunnels to private groups, and Early members of the coalition national highway network for the and CEO Bill Graves. “For the Bush Administration, the has called on federal and state gov- include the Recreation Vehicle In- efficient transport of goods and “We must consider the long- rush to promote public-private ernments to abandon the financing dustry Association, the Owner-Op- the military, and to hold govern- term impact privatization will have partnerships is based in ideology, technique. erator Independent Drivers Associ- ment accountable for ensuring on our nation’s transportation sys- not a critical evaluation of how Truckers support a toll-free na- ation, the American Highway Users financing is transparent, motivated tem and explore all available public-private partnerships might tional highway system where Alliance, the National Association by public good, and dedicated to financing options to ensure that help meet the goal of an improved, money to finance highway im- of Truck Stop Operators, and the transportation purposes. the government is motivated by integrated national transportation provements primarily comes from American Trucking Associations. “The sale or lease of existing public good and transportation system and further the public user fees, such as the fuel tax. 8 March 1, 2007 INDUSTRY NEWS Bus & Motorcoach NEWS Fung Wah coach slams guardrail Shuttle Bus Leasing BOSTON — A 45-foot coach About two years ago, a Fung None of the 30 passengers on operated by accident-prone China- Wah bus caught fire in Boston. board was injured. Massachusetts "Your Solution For Shuttling & Fixed Route Contracting" town operator Fung Wah skidded Last September, a Fung Wah coach State Police cited the company for off the Massachusetts Turnpike late full of passengers rolled near Au- failure to properly maintain equip- Leases Terms Available From 3 Months to 2 Years last month and hit a guard rail. burn, Mass., because the driver was ment. High Quality, Transit Shuttle Buses None of the roughly 50 people driving too fast. Many were hurt. Following the rollover incident, Over 1000 Buses In Inventory on the bus were reported injured. In early January, a set of duals the Federal Motor Carrier Safety When interviewed by local media, on a Boston-bound Fung Wah bus Administration fined Fug Wah 22' To 60' Models Available the passengers couldn’t agree on sheared off the lug bolts and nearly more than $31,000, in part, for let- whether the coach was driving too came off the coach. The bus had ting non-English speaking drivers fast for conditions. traveled nearly 200 miles at high- carry its passengers. (See Nov. 15 The incident occurred just be- way speeds on an early-morning Bus & Motorcoach News.) fore noon during a storm. Other run from New York. State police determined the major bus operators reportedly had When the State Police arrived, driver in the most recent crash shut down their Boston operations the two right-rear wheels were dan- could effectively communicate in during the bad weather. gling from the axle. Investigators English. The incident was the latest in said the sheared-off bolts were an Fung Wah has been under the string of events involving Fung indication the lug nuts may not heightened regulatory scrutiny for Wah. have been properly tightened. its string of mishaps.

Parking Lot Shuttles ~ Seasonal Coverage Bus museum schedules spring event Employee Shuttling ~ Peak Demand Coverage HERSHEY, Pa. — The Muse- Buses will be displayed at both members to benefit the museum. um of Bus Transportation’s annual the annex and the nearby museum. A highlight will be a ceremony TopQualityTransitBusesAlso Spring Fling and Bus Show will be There is will be no charge to to dedicate the new annex to long- Availablefor Sal e Saturday, June 2. visit the annex, where the fling and time museum founders and sup- This year’s event will mark the show will be conducted. porters Richard Maguire, Dick first time that all 33 of the muse- Normal admission (with mem- Fullington Sr., and George Sage. 800-287-7253 um’s restored over-the-road, transit ber discounts) will be charged at To reserve space and/or tables, and school buses will be available the museum. or to get additional information, 1863 Service Court, Riverside, CA 92507 for viewing at one time by visitors. The event will include a bus call (717) 560-7100, ext. 119, or go www.Shuttl eBusLeasi ng.com And, it will be the first time the memorabilia and collectibles flea to www.busmuseum.org. public will have an opportunity to market, and hot food and cold The museum and annex are in visit the new Memorial Annex. drinks will be sold by volunteer Hershey. Bus & Motorcoach NEWS INDUSTRY NEWS March 1, 2007 9 People Doug Anderson, Craig Lentzsch to lead ABA Gerald Hausman, whose name- GRAPEVINE, Texas — Doug chairman of the ABA Marketplace, They are, Lentzsch, plus: Attendance at Marketplace has sake Hausman Bus Sales was a Anderson, president of Anderson as well as “a prominent voice on • Don DeVivo, DATTCO, leveled off in recent years at leading motorcoach sales organiza- Coach & Travel in Greenville, Pa., the board,” the ABA said in a state- New Britain, Conn. around 3,000. There were 2,863 tion for four decades, has been pre- has been elected to a two-year term ment announcing his election. • Brian Souter, Stagecoach delegates at this year’s event, com- sented one of the inaugural Life- as chairman of the American Bus “I’m excited and honored to Group, Perth, Scotland pared to 3,000 last year and nearly time Achievement Awards by the Association. be serving the ABA membership • Jim Jalbert, C&J Trailways, 3,000 in 2004. American Bus Association. The election, by the ABA in the coming years. ABA has Portsmouth, N.H. There were 626 “buyer” dele- The awards, established to board of directors, came during the always been a leader and innova- • Ron Moore, Burlington gates at Marketplace this year, ver- honor individuals who have helped association’s annual Marketplace, tor in the industry, with a focus on Trailways, West Burlington, Iowa sus “more than 600 buyers” last shape the motorcoach and group which was conducted here last inclusiveness in the industry and • Chris Anzuoni, Plymouth & year, and 1,949 “sellers” this year, travel industry, were presented for month. reaching out to our members,” Brockton Street Railway Co., virtually the same as last year. the first time at this year’s ABA Additionally, the board elected Anderson said. Plymouth, Mass. The 2008 Marketplace will be Marketplace in Grapevine, Texas. Craig Lentzsch, president and Eyre said he enjoyed his time The ABA said delegates to its Feb. 2-8 in Virginia Beach, Va., and The late Peter L. Picknelly of CEO of Coach America in Dallas, as chairman. “I’ve had the oppor- ’06 Marketplace in Grapevine, the chairman will be John Meier, Peter Pan Bus Lines also was to be vice chairman. tunity to work with some talented which is just northwest of the general manager/CEO of Badger named a recipient of the award (see Anderson is a long-time ABA people who really truly care about Dallas/Fort Worth International Coaches in Madison, Wis. Feb. 15 Bus & Motorcoach News). member and had served as vice the association and our industry,” Airport, participated in more than This year’s Marketplace chair- Hausman entered the motor- chairman for the past two years. He he noted. 110,000 appointments, a record. man, Steve Haddad, president of coach industry almost 60 years ago succeeds Ron Eyre, president of Six ABA directors whose terms The number of appointments at the Bieber Tours in Kutztown, Pa., when his father suggested he call Eyre Tour and Travel in Glenelg, expire this year were nominated to ’06 Marketplace in Nashville was described his tenure as “a once-in- on Greyhound Lines and try to re- Md. Anderson also has been a serve an additional three years. something over 103,000. a-lifetime experience.” establish a scrap account. The visit paid off and Hausman Bus Sales was well established and nia and New Jersey. market share of less than 25 per- Hausman retired in 1989, sell- began selling scrap parts, but he Hausman had 35 employees. In 1972, Hausman became the cent. By 1980, Hausman Bus Sales ing Hausman Bus Sales to quickly moved to pre-owned bus From his Chicago base, Haus- U.S. sales arm of Motor Coach had captured 70 percent of the new Greyhound Corp. He continues as sales. By the late 1960s, Hausman man expanded to Southern Califor- Industries, which at the time had a and pre-owned coach market. an industry consultant.

12 March 1, 2007 INDUSTRY NEWS Bus & Motorcoach NEWS

N.Y. tickets cers — be given the authority to “Some may fall under parking issue citations and summonses to control regulations and others fall ArvinMeritor to develop CONTINUED FROM PAGE 3 coaches. under administrative law viola- officers manning the streets, in- • Invite someone from NYC tions,” he said. “Some may in fact diesel-electric drivetrain cluding specific instructions on & Company to attend the training require criminal summons al- changes made to regulations dur- sessions. though the act itself is not being TROY, Mich. — Call it a proj- tant environmental and economic ing holidays and other busy sea- Dixon also explained why criminalized.” ect worth watching. ways.” ArvinMeritor and Wal-Mart A key driving force behind the sons. some of the citations issued by The best course of action to have agreed to develop a dual- project is Wal-Mart’s announced • Issue a directive that only police were criminal summonses take, he suggested, is for operators mode, diesel-electric drivetrain for intention to double — yes, double Manhattan precinct officers will instead of simply city tickets, not- to consult their attorneys for guid- over-the-road trucks. — the fuel efficiency of its heavy- be charged with implementing the ing that they are determined by the ance on how to handle the criminal The drivetrain will be devel- duty trucks during the next decade. regulations and that only those type of violation and where the summons. oped for use in an International Dual-mode diesel-electric dri- officers — not outer-borough offi- infraction takes place. Class 8 ProStar tractor and use an vetrains, which have both mechani- ’07 Engines will cost $11,000-$14,000 more. ers, including Detroit Diesel, engine developed by Cummins. cal and electrical propulsion sys- Penske also sees its early com- Caterpillar and Cummins, have “We’ve been working on devel- tems, use the electric motor drive CONTINUED FROM PAGE 1 mitment to the ’07 engines as giv- been saying for months that the opment of hybrid drivetrains for primarily for periods of high — including Freightliner and ing it something of a competitive after-treatment systems on the ’07 some time,” said Carsten J. demand under low-speed, high- Reinhardt, president of Arvin- load operating conditions, such as International Truck and Engine — advantage. Hasinec was quoted as engines will not penalize fuel Meritor’s commercial vehicle sys- accelerating from a stop. during ‘07, as both attrition and saying his company will be better economy significantly because of tems business. Once moving, the mechanical new business demand. prepared than its competitors to improvements made to other “This Class 8 project is a major propulsion system begins to blend That means that by the end of use and maintain the new engine engine components and systems. step in our continuing work in its power with the electric motor the year, Penske – by itself – could technology. More than 1.6 million miles of alternative drivetrain development until it reaches highway speeds, be operating three or four times as An executive with C.R. ’07 engine testing in trucks operat- — both for power transmission and where the drive phases to com- many vehicles with the ’07 diesel England, North America’s second- ed by Wal-Mart also has con- emissions — and holds tremendous pletely mechanical. The electrical engines as the entire private North largest refrigerated truck opera- firmed that fuel economy is on par promise for the worldwide heavy- system can provide additional American bus industry, and that’s tion, reported that the fuel econo- with ’06 models. duty market in a number of impor- power during hill climbing. if the motorcoach industry has a my of the ’07 engines it is running Schneider National, North decent sales year. is comparable with the trucks pur- America’s 8th largest for-hire Volvo unveils hybrid drivetrain Penske’s decision also is signif- chased in 2005 and 2006. England, trucker, also has made an early icant because Class 8 trucks with which is based in Salt Lake City, commitment to ’07 engines. It WASHINGTON — Volvo AB trucks and buses while running ’07 engines cost $7,000-$9,000 tracks fuel mileage on a weekly bought 50 and expects to purchase and Mack Trucks Inc. have much cleaner. unveiled a hybrid prototype of a “The new engine offers the more than similarly equipped ’06 basis for its fleet of 3,000 trucks. another 500 toward the end of the heavy-duty Mack construction greatest potential for fuel savings models. New motorcoaches The company plans to buy 200 year if the initial models perform truck, and executives from the two and clean technology where it is equipped with ’07 engines, when heavy-duty trucks with ’07 engines well. Most, if not all, of the companies say the truck’s diesel- most needed, in urban centers they begin rolling off assembly in July. Schneider trucks will be equipped electric power supply will cut fuel around the world,” said Volvo AB lines around the middle of the year, Virtually all of the engine mak- with Detroit Diesel engines. costs 30 percent for stop-and-go President Leif Johansson.

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MIDWEST NORTHEAST SOUTHEAST SOUTHWEST WESTERN 800-222-2875 800-222-2873 800-222-2871 800-222-2877 800-322-2877 Bus & Motorcoach NEWS INDUSTRY NEWS March 1, 2007 13 Fast start for Expo ’08; CMG purchased Government relations firm, SAN FRANCISCO — More fax, Va.-based CMG from its prin- shows on behalf of eight organiza- than 10 months before Motorcoach cipals. tions representing a variety of lobbyist are hired by UMA Expo 2008, 85 percent of the CMG is a full-service event industries, from manufacturing, to exhibit hall floor space already has management company and, like food processing, to commercial ALEXANDRIA, Va. — The At USDOT, she worked in the been sold, reports Convention Naylor, focuses exclusively on construction. Plus, of course, the United Motorcoach Association legislative division of the Office of Management Group, the company serving trade and professional motorcoach industry. has retained a Washington firm, the General Counsel. As a U.S. that manages the event for the associations. The acquisition will “We are proud to become a part BKSH & Associates, and one of its House staff member, Weber served United Motorcoach Association. add event management capabilities of the leading media partner for managing directors, Becky Weber, as counsel to Republican members Mark Miller, exhibit account to Naylor’s slate of print and online associations in North America,” to provide government relations of the transportation and infra- representative for Convention media services. said Mike Muldoon, president of and lobbying services. structure committee on matters Management Group, said a record “Acquiring a respected conven- CMG. “Naylor has outstanding BKSH & Associates is a bipar- under the jurisdiction of the sur- amount of ’08 booth space was tion management company and relationships with hundreds of tisan firm, providing government face transportation subcommittee. sold on the final day of Expo ’07 in adding a Washington, D.C-area associations, and it’s clear they relations consultancy to a select She served on the Bush/ New Orleans. office is a natural and exciting share our core values of providing group of domestic and internation- Cheney Transition Advisory Team The general sales campaign for addition for Naylor as we continue consistent and always improving al clients. for the Department of Transpor- the ’08 show begins this month. to expand our business and capabil- services to our association partners, It is part of Burson-Marsteller, tation in 2001. Meanwhile, in an unrelated ities,” said Alex DeBarr, president exhibitors and attendees.” the world’s largest communica- She holds a law degree from development, Convention Manage- and CEO of Naylor. Muldoon is joining Naylor as tions agency, and is led by Charles the University of Kansas and a ment Group has been purchased by “By adding CMG’s event man- executive vice president. Black, who is perhaps best known bachelor degree from Baylor Uni- one of the leading providers of agement services, Naylor is now “Naylor’s powerful sales and as one of the nation’s leading Re- versity. business-to-business communica- able to offer our association partners marketing capability and wide publican political strategists. Black “From my vantage point, tions for trade and professional completely integrated media solu- array of print and electronic media served as a senior advisor to Pres- retaining BKSH and Becky Weber associations in North America. tions in print, online and in person.” services will allow us to provide idents Ronald Reagan and George further strengthens our ties with Naylor LLC, which is based in Founded 17 years ago, CMG more and better services to our cur- H.W. Bush. the school bus industry, a relation- Gainesville, Fla., purchased Fair- produces conventions and trade rent customers,” said Muldoon. Weber and BKSH provide gov- ship that seems natural given that ernment relations services to the one-third of (UMA) members op- National School Transportation erate home-to-school school bus General Motors is considering selling Allison unit Association, which is managed by service on a contract basis,” said DETROIT — General Motors The auto giant said it’s examin- matic transmission market for UMA. Victor Parra, president and CEO of Corp. has confirmed it is looking ing the value of operations “not motorcoaches and buses, as well Weber specializes in trans- UMA. at possible changes at Allison central” to the corporate mission as commercial trucks. It employs portation issues. She held senior “Becky is the top transporta- Transmission, including selling of designing, manufacturing and 3,400 people, has seven plants in staff positions on the House tion lobbyist in town. She’s well the division as part of its long- selling cars and light trucks glob- Indianapolis, and sells its products Transportation and Infrastructure respected by both Democratic and Committee and at the Department Republican members of Con- termPrOwndPrtsB&MC strategy to improve 10/3/06 the com- 1:16 PMally. Page 1 in North and South America, pany’s financial condition. Allison dominates the auto- Europe, Africa and Asia. of Transportation. gress.”

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HUDSON RIVER CORPORATION Call toll free: 1-866-LAV-DUMP | Fax: 1-201-420-3322 Bus & Motorcoach NEWS INDUSTRY NEWS March 1, 2007 15 UMA files charter complaints against two transits ALEXANDRIA, Va. — The vincing the FTA regional adminis- agency to not only publish its char- the transit agency provided charter terpreted” federal charter rules or United Motorcoach Association is trator in Philadelphia to agree. ter service notice in a local news- service to Chinmaya Mission in is attempting to circumvent the pursing charter-service complaints Virginia Regional Transit told paper but also to send copies to all June and July of last year at a daily rules in an effort to “disguise what with the Federal Transit Admin- the administrator it published char- private charter operators in the rate of $300. UMA contends such would otherwise be considered istration against transit agencies in ter service notices but no private geographic area where the agency a rate is “unobtainable” in the bus charter” service. Purcellville, Va., and Rome, Ga. operators responded, so it legally operates, plus copies to UMA and industry “without benefit of feder- According to UMA, Rome The association says the Vir- provided the disputed service. the American Bus Association. al subsidies.” Then, in October, the Transit has a trolley bus that it rou- ginia Regional Transportation As- UMA and Virginia Coach Neither UMA nor Virginia transit system again provided ille- tinely uses to provide charter ser- sociation in Purcellville violated Company, a private operator based Coach received notices from gal charter service, says UMA. vice. The transit agency denies the charter rules last June and July, and in Purcellville, contend Virginia Virginia Regional Transit in 2003, In the Rome, Ga., case, UMA allegation, saying it subcontracts again in October. So far, however, Regional Transit did not comply 2004 and 2005. contends the City of Rome Transit the trolley to willing-and-able pri- UMA has had some difficulty con- with FTA rules that require the UMA and Virginia Coach say Department either “grossly misin- vate operators that request it. Charter rules new rules contain a “more robust decline the opportunity and refer contains specific timelines for charter service complaint or to complaint, hearings and appeals the customer to registered private complaints, answers, replies and refer the matter to a “neutral deci- CONTINUED FROM PAGE 1 process.” operators on the FTA charter serv- other documents and an investiga- sion-maker,” referred to as a presid- totally trash such provisions as the Under the revisions, there are ice Web site, or notify private char- tion process. For example, the FTA ing official or arbitrator for a hear- willing-and-able process; cease- deadlines the FTA must meet when ter operators of the opportunity. has 90 days in which to conduct an ing. The presiding official would and-desist orders; public “charter” it investigates a charter service Private operators have 72 hours investigation. hold a hearing and issue a recom- notices printed in seven-point type complaint. to respond to a notification of serv- Appeals: The proposed rules mended decision to the FTA that in the back of local newspapers, ice requested in less than 30 days, outline an appeals process, includ- would reject, ratify or adopt with and regulatory language that is Teeth anyone? or 14 calendar days to respond for ing a timeline that all parties must modifications the recommended vague, unenforceable and easily The FTA believes the rules service requested to be provided in follow, plus providing for judicial decision. Any initial decision could disputable. eventually will reduce the number 30 days or more. review of final decisions and orders be appealed to the FTA administra- Gone also is an appeals process of charter service complaints Exceptions allowing public in an appropriate U.S. District Court. tor. that was little more than a joke. because public transit agencies will transit agencies to perform char- Hardship Exception: FTA Definition of charter service: Gone, too, is the involvement of learn the FTA is serious when it ter service: proposed to retain the current hard- The FTA proposes that three ele- regional FTA administrators who, says transits shouldn’t engage in • Transportation of govern- ship exception that allows rural ments must be present for a bus early in this decade, became notori- prohibited charter work. ment officials for site visits (the areas to provide charter service service to be considered charter ous for their timidity in tackling Improved enforcement is a key rules contain a cap for this type of when distances exist between it and service: charter service complaints; issued aspect of the new rules. The stated service) available charter operators with a • Transportation of a group of rulings that defied logic or were goal is to deter “risky behavior” by • Trips for qualified human modification that the current persons pursuant to a single con- hopelessly inconsistent, or handed public transits bent on pushing the services organizations (those that phrase “too far” be replaced with tract with a third party. down feckless rulings that con- limits in providing charter service. receive federal, state or local fund- “deadhead time exceeding total trip • A fixed charge tained neither backbone nor bite. The rules contain a “remedial ing that includes transportation) time from initial pick-up to final • An itinerary determined by In the past couple of years, scheme” for violations. They give and the requested trip is consistent drop-off.” someone other than the public tran- some brave regional FTA adminis- the FTA wide discretion in deter- with the group’s stated mission Fully allocated costs: FTA sit agency. trators have become more aggres- mining the best remedy. For exam- • Leasing FTA-funded equip- proposes to eliminate the concept Examples of charter service: sive about enforcing the rules. ple, an agency could be completely ment and drivers of “fully allocated costs” for pur- Use of buses or vans to trans- In place of the old rules are pro- barred from receiving federal • Events of regional or nation- poses of the charter rule. The FTA port school students, school per- posals that appear to be fair, clear money, or forced to give up revenue al significance (requires consulta- believes the charter service allowed sonnel or school equipment and reasonable — and have teeth. collected in violation of the rules. tion with registered private charter under the rule would be an inciden- Shuttle service to events that They provide a largely unambigu- One private-sector representa- providers) tal use of FTA-funded equipment occur on an irregular basis or for a ous definition of charter service tive who attended the advisory • Instances when no charter and facilities, and the recovery of limited duration that even the most unsophisticated committee meetings calls the FTA service provider responds to a fully allocated costs would not be Shuttle services limited to a transit administrator ought to be proposal “a very positive docu- notice requesting service. required. group of individuals pursuant to a able to understand… and adhere to. ment. …While I know we are not Advisory Opinions: Any inter- Cease-and-desist orders: The contract with an institution, univer- all going to agree with everything ested party may request an adviso- proposed rule does not include a sity, corporation or government. Let in the light that is proposed, I think we defi- ry opinion cease-and-desist provision, citing a Service that does NOT consti- One of their best features is that nitely got the benefit of the negoti- from the FTA. The interested lack of human resources to admin- tute charter service: they seek to make the process ations in most of the proposals.” party must provide details about a ister cease-and-desist provisions; a • Adding equipment or days to transparent, including putting Here are some of the key specific event. The advisory opin- fear of being inundated with an existing route requests that public transit agencies aspects of the proposed rules: ion would represent the formal requests, and because FTA believes • Extending service hours on get for charter service out in the FTA Charter Registration position of FTA on a matter and the revisions to the charter service an existing route open for all to see. Website: The FTA will develop a obligate the agency to follow it definition with clear exceptions • Demand-responsive service At the same time, they make Web site that will serve as a data- until it is amended or revoked. and strong remedies provide suffi- that is part of coordinated public demands on private operators. base of private charter operators Complaints: There is a stream- cient protection of a private opera- transit human services transporta- They require operators to regis- and clearing house for requests for lined complaint process for alleged tor’s financial interest. tion ter their availability for charter charter service received by public charter violations, and challenges Neutral decision-maker: The • New or modified service that work online at a new FTA Web site transit agencies. to the listing of private charter FTA proposes a new provision that is open to the public, where the that will be dedicated to charter Registration: All private char- operators on the Web site registra- would allow FTA headquarters to recipient establishes and controls service. They also seek to stop the ter operators wanting to be consid- tion list. The complaint process make an initial decision regarding a the route and the service continues practice by some private operators ered for charter work that was from year to year. of filing frivolous, vague or vindic- requested of a public transit agency Transit agency seeks charter firms Comments on the proposed tive charter service complaints. will be required to register on the The following public transit tors to take the time to respond to rules are due to FTA by April 16. Ultimately, they will require Web site. provider has informed the United this notice: To get a copy of the proposed rule private bus companies to step up to Process to be followed when a Motorcoach Association of its Altoona, Pa. Deadline: 4 p.m. and details about how to file com- the plate and become more fully transit agency gets a request for intent to provide charter bus serv- Feb. 28, 2007. Write to: Eric Wolf, ments, go to http://www.fta.dot. engaged with the public transit charter service: Unless the public ice unless willing-and-able private General Manager, Altoona Metro gov/regional_offices_federal_ agencies in the geographic area transit agency is able to provide the operators step forward to offer Transit (AMTRAN), 3301 Fifth register.html. Under the Subject where they operate. service under one of the exceptions service. Ave., Altoona, PA 16602. Phone: heading, look for: Charter Service For its part, the FTA says the in the new rules (see below), it must UMA urges appropriate opera- (814) 944-4074. Notice of Proposed Rulemaking. 16 March 1, 2007 INDUSTRY NEWS Bus & Motorcoach NEWS

Laidlaw facing significant competitive Heck of a deal Some have wondered how much total school buses operated on a pressures in the highly fragmented The proposed deal also is near-term upside investment po- daily basis, with 330,000 owned CONTINUED FROM PAGE 3 school bus contracting industry. being touted as favorable for tential remained in Laidlaw shares and operated by public school dis- either. Since it was merged into To meet the competition, he Laidlaw shareholders, though given the financial challenges the tricts. The 63,000 operated by Laidlaw eight years ago, Grey- said, industry giants like Laidlaw there have been questions about company faces in terms of reviv- Laidlaw and FirstGroup represent hound has continued to operate and FirstStudent are going to have why Laidlaw management didn’t ing Greyhound, keeping the school about 13 percent of that total. Of quite independently from its head- to invest in new technology to put the company on the auction bus operations competitive, and the 165,000 school buses operated quarters in Dallas. Synergies with reign in costs so they can remain block and see if a higher bidder rising labor costs. by private contractors, Laidlaw other Laidlaw operations have not competitive with smaller compa- could be found. Said Benson: “Our goal for the and FirstGroup operate a com- been in abundance. nies that have much lower over- Under the agreement, First- past four years has been to devel- bined 38 percent. Greyhound accounted for less head. op, demonstrate and deliver share- than 33 percent of Laidlaw’s rev- For example, in recent years holder value. We believe this trans- ‘We believe this No love enue in the first quarter of fiscal Laidlaw has worked with manu- action is the epitome of that goal After the deal was announced, 2007, down from 40 percent for all facturers to build it school buses and represents an excellent oppor- Standard & Poor’s Ratings Service of 2006. that last longer, reducing its bus tunity for both companies’ em- transaction…rep- placed FirstGroup’s short-term investment costs. ployees and shareholders. credit rating on watch with nega- FirstThings first “The combination of Laidlaw Meanwhile, FirstGroup’s take- No fun being public resents an excellent and FirstGroup will bring together tive implications. over of Laidlaw is the first order of Benson also noted that merg- well-known brands and well- “The CreditWatch placement business for both companies and, ing Laidlaw into FirstGroup will opportunity for respected companies that share a reflects the weak business profile in the eyes of most analysts the eliminate huge expenses the com- very strong focus on employee and of up to 50 percent of Laidlaw’s deal makes a great deal of sense. pany incurs by being a public com- customer satisfaction. It will pro- operations and the increase in debt No. 1, it would combine North pany and having to comply with both companies’ vide a sound economic and opera- leverage required to undertake the America’s two largest operators of federal Sarbanes-Oxley Act audit tional base from which to continue acquisition,” said S&P credit ana- school buses. Laidlaw’s fleet num- and financial reporting require- many of the efficiency initiatives lyst Leigh Bailey. “These factors bers 41,000 yellow buses and the ments. “A lot of that reporting sim- employees and that we have underway.” are together expected to dilute FirstStudent subsidiary of ply goes away” by virtue of being FirstGroup plans to finance the FirstGroup’s existing satisfactory FirstGroup operates 22,000. The owned by a British company, shareholders.’ acquisition through a bank loan business profile and could also third-largest school bus operator in Benson noted. and share issuance. pressure credit ratios.” North America also is a British Laidlaw is not alone among The unions that represent outfit, National Express. American companies that chaff Group will acquire all of the out- Pesky regulators Laidlaw and FirstStudent drivers In explaining the deal to under the reporting burdens and standing common shares of Laid- In addition to the talk about the also have been critical of the deal. employees, shareholders and the costs imposed by Sarbanes-Oxley, law in an all-cash transaction val- merger’s possible impact on The International Brotherhood investment community, Laidlaw which was an outgrowth of the ued at roughly $3.6 billion. That Greyhound, other speculation has of Teamsters said it was concerned heavily emphasizes the cost sav- corporate scandals of the late amount includes assumption of centered on the issue of regulatory about the service record of First ings to be gained. Overhead, 1990s and early in this decade. $800 million in Laidlaw debt, approval and possible anti-trust Student, particularly when it came administrative and development The second merger synergy making the actual purchase price implications since the transaction to safety violations. costs will be reduced and spread noted by executives is that both $2.8 billion. would combine the two largest pri- More than 30 drivers attended over 63,000 buses instead of FirstGroup and Laidlaw manage Laidlaw stockholders are to vate school bus operators in the Laidlaw’s annual meeting, and 41,000, it was noted. public transit systems in the U.S., receive $35.25 for each share of U.S. some questioned Benson about the In London, it was reported that with FirstGroup one of the largest Laidlaw common stock they hold. Benson addressed the issue in merger. FirstGroup expects the deal to gen- private-sector providers of transit The deal has been OK’d by the conference call with analysts, “FirstGroup has been an anti- erate approximately $70 million in management and contracting. The Laidlaw’s directors and they have telling them that “clearly” he was union company,” declared Louis pretax savings in the first full year companies operate in major cities, recommended that stockholders confident the transaction would following its completion. How- including Los Angeles, Houston, also approve the transaction. A win regulatory approval, and he Malizia, assistant director of capi- ever, in a conference call with fi- Denver and suburban Chicago. vote by shareholders is some said his confidence was shared by tal strategies for the Teamsters. “As nancial analysts, Laidlaw Presi- FirstGroup also is one of the months away. the Laidlaw board and FirstGroup. we study the details of this merger, dent and CEO Kevin Benson said largest providers of airport shuttle Since Laidlaw emerged from “We would not have put the if we find that we have a lack of he didn’t know “where they got the bus services in the U.S., serving bankruptcy four years ago with a amount of time into it that we have confidence in FirstGroup’s admin- ($70 million) number from, and I airports in Baltimore, Philadel- clean balance sheet, a changed to get to where we’ve got” if exec- istration in the U.S. then we’ll can’t attest to it.” phia, Miami and other cities. name, and a public stock offering, utives, attorneys and investment oppose this merger in any way we At Laidlaw’s annual sharehold- Additionally, Laidlaw and the price of Laidlaw shares have consultants didn’t think the deal can.” ers meeting last month, and in sub- FirstGroup operate paratransit sys- gone from $7 at their low point to would clear regulatory hurdles, In response, Benson said: “I sequent statements, Benson noted tems, campus shuttles, call centers over $29 at the end of January, Benson told the analysts. don’t think anyone who drives a that Laidlaw and FirstStudent are and other light transit activities. before the merger was announced. There are roughly 495,000 bus here has any reason to worry.”

However, several people in the Cantrell said the customers he informed them of its responsi- for legislation that could correct AutoMax motorcoach industry say the busi- also can choose to drive the buses bilities and the potential financial some of the problems. “But that CONTINUED FROM PAGE 1 ness has been looked at by federal themselves, which adds to the safe- liabilities it faced. “They backed could take two years or so and in were to have a serious accident in regulators who found it is operat- ty concerns. “If the person can right off,” he said. the meantime we need to go out one of the rented buses, it would ing legally. start it up and get it out of the park- The Georgia operators say the and educate the public.” give the motorcoach industry a According to coach operators ing lot then they think he’s a pretty public needs to be educated about Meanwhile, they worry the bus black eye because the public who have had experience with the good ole’ guy,” he said. the situation, and the best place to rental business is likely to spread wouldn’t know or appreciate the rental company, AutoMax not only United Motorcoach Associa- start might be with the rental com- to other states, causing the industry difference between the rental busi- rents the buses, but supplies cus- tion Vice President Ken Presley, pany itself. even more problems. ness and a professional bus compa- tomers with the names of drivers who has been monitoring the situ- “I think they should be re- “It is happening in my town ny and its trained drivers. they can contact to operate the bus. ation closely, confirmed that not quired to actually tell their cus- and it is going to be in your back- “We (the industry) have a very “But the drivers do not have to all bus rental customers take the tomers of their insurance liability yard soon, too,” suggested Tidwell. good safety record and this would undergo physicals, take drug tests time to read the fine print in the rather than just hand them a con- Presley agreed, saying it proba- not be good for our industry,” she or anything else that we as motor- contract or check on the records of tract and have them sign it,” said bly is spreading and operators said. coach operators are required to do the drivers. Tidwell. around the country should be watch- Executives with AutoMax with our drivers,” said Tidwell. He said a college in Georgia Cantrell agreed that education ing for it in their areas. “If you declined to comment on the com- “The customers know nothing that was renting buses from is the key, although he said opera- don’t have it in your community pany or its bus rental practices. about them at all.” AutoMax dropped the service after tors in the state also need to push now, you could soon,” he warns. Bus & Motorcoach NEWS INDUSTRY NEWS March 1, 2007 17 Congressmen join call for national biodiesel standard SAN ANTONIO, Texas — diesel standard would help “build a mandate to use biodiesel in Minne- gallon industry by 2015. But the levels in 10 years. Pressure appears to be building for national political movement in sota, and it works, but there’s no industry built so much capacity Such a production increase the establishment of a national favor of biofuels.” mandate in neighboring states. I during the past two years that the would mean that all diesel now standard for biodiesel fuel. U.S. Rep. Collin Peterson, D- think we should have a national board this past fall approved a new: made from Iraq oil, and a fourth of Four Congressmen, two Demo- Minn., addressed a different aspect mandate.” “5 x 15,” or 5 percent of the diesel all diesel now made from Persian crats and two Republicans, speak- of the biodiesel issue. “We have About two years ago, the market by 2015. Gulf oil, could be replaced with ing at the National Biodiesel different mandates in different National Biodiesel Board declared That would mean a tenfold home-grown biodiesel, said bio- Board’s 2007 Conference and Expo states,” said Peterson. “We have a that biodiesel would be a billion- increase in biodiesel production diesel board CEO Joe Jobe. here announced their strong agree- ment with the call for a national standard. Such a standard “would be well received on Capitol Hill because petroleum marketers are reluctant to handle all these different blends,” said U.S. Rep. Kenny Hulshof, R-Mo. Hulshof said operators of com- mercial vehicles won’t use bio- diesel-blended fuel “if we continue to offer them all these different boutique blends all over the coun- try.” U.S. Rep. Thaddeus McCotter, R-Mich., said that a national bio- More enforcement for ULSD labeling WASHINGTON — The U.S. Environmental Protection Agency has stepped up enforcement of its fuel-pump labeling rules after find- ing that a majority of retail diesel pumps it checked were not display- ing ultra-low-sulfur-diesel labels, even though they were dispensing ULSD. EPA said ULSD is widely avail- able, but mislabeled pumps could cause a perception it is not. “EPA has received complaints from oper- ators…that they cannot find pumps that are labeled ULSD,” an agency spokesman noted. YOU GET THEM ON THE BUS. WE’LL TAKE IT FROM THERE. Calendar MARCH 2007 7-9 Trailways 71st Annual Conference and Meeting, Don Shula’s Hotel and Golf Course, Miami Lakes, Fla. Info: Go to www.trailways.com, or call (703) 691-3052. For decades Detroit Diesel engines have provided the reliable, efficient 27 Pennsylvania Bus Associa- performance you depend on. After millions of miles of successful testing, tion Marketplace 2007, Penn- our EPA ‘07 engines are ready to support you. We are committed to the sylvania Farm Show Complex, things you need to deliver passengers on time, like reliability, service and Harrisburg. Info: Go to www.pabus.org. parts availability. Because when we do our part, you can focus on other things – like keeping your coaches filled with people. Learn more at APRIL 2007 www.detroitdiesel.com. 5 DATTCO Sales & Service Expo, Mohegan Sun Casino, Uncasville, Conn. Info: Call (800) 229-4878. 24-26 Ontario Transporta- tion Expo, Holiday Inn Select

Toronto Airport and Internation- www.detroitdiesel.com Specifications are subject to change without notice. Detroit Diesel and the spinning arrows design al Centre, Mississauga, Ont. are registered trademarks of Detroit Diesel. © 2006, Freightliner LLC. All rights reserved. Detroit Diesel is a member of the Freightliner Group. Freightliner LLC is a DaimlerChrysler company. Info: Go to www.ote.ca. 18 March 1, 2007 INDUSTRY NEWS Bus & Motorcoach NEWS California operators charged with fraud, tax evasion SAN JOSE, Calif. — The own- Santa Clara County prosecutors “By avoiding millions of dol- Santa Clara and nearby San Fran- from employees’ wages but pock- ers of a San Jose bus company say Quint and Stommel committed lars in required taxes and insurance cisco. It contracts with Santa Clara eted the money instead of remit- were arrested late last month and workers’ compensation insurance premiums, the defendants not only Valley Transportation Authority to ting it to the Employment charged with 14 felony offenses, fraud, grand theft, income and cor- profited illegally, but also gained provide the Altamont Commuter Development Department. including insurance fraud and tax porate tax evasion, and unemploy- an unfair advantage over honest Express shuttle and Downtown As a result, the pair defrauded evasion. ment insurance tax evasion. business competitors,” said Area Shuttle services. the state of more than $280,000. Gerald Quint of San Jose and The prosecutors say the District Attorney Dolores Carr. It also provides contracted And because paid wages are used Susan Stommel of Pleasanton, are scheme cost the state of California When the pair were arrested shuttle services from transporta- as the primary basis to calculate a the owners and operators of New and workers’ compensation insur- they were taken to Santa Clara tion hubs and light rail stations to business’ workers compensation Century Transportation. The 10- ance companies $2.2 million — $3 County jail; bail was initially set at corporate offices. Plus, it operates insurance premium, prosecutors year-old company has a fleet that million with interest and penalties. $1 million each. the shuttle buses for a popular non- said “such gross underreporting in includes transit and midsize buses, If convicted on all counts, The company operated by profit arts center and charters to payroll” also illegally and substan- a motorcoach, vans, limousines Quint and Stommel face more than Quint and Stommel has about 30 casinos. tially lowered the workers compen- and town cars. 15 years in prison. employees, and operates largely in One competitor said New Cen- sation insurance premiums for tury owes area coach operators New Century. more than $125,000 for work the Prosecutors say the total operators provided to New Century. amount of premium defrauded Prosecutors said their investi- between 2003 and 2006 was more gation revealed that between 2004 than $1.3 million. and 2006, New Century failed to Investigators also said Quint report more than $4.5 million in and Stommel failed to report near- wages to the state Employment ly $11 million in New Century rev- Development Department. enue from 2002 through 2005, Additionally, Quint and Stom- resulting in evasion of more than mel allegedly deducted personal $480,000 in state corporate and income taxes and disability taxes personal income taxes March 1 Motorcoach News Corrections photograph in the Feb. 15 issue. The professional affiliation of Larry Williams of L.W. David Messick of Blue Ridge Transportation in Fredericksburg, Coach Lines in Culpeper, Va., Va. was incorrectly identified in a also was wrong. CLASSIFIED ADVERTISING 2001 MCI E4500

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