November 15, 2014

Feds’ insurance proposal is seen as attack on industry WASHINGTON — If federal pushing to raise the minimum the-road truckers to as much as $3 crease in insurance premiums, to tative at Lancer. “That could result regulators succeed in raising the level of liability coverage required million from the current $750,000. an average of more than $10,000 in a large consolidation in the minimum required liability insur- on buses and big rigs by sometime It should be kept in mind the annually per bus, says Lancer In- industry.” ance on passenger coaches to $10 next year, claiming it would in- last time Congress raised the limits surance Co., the nation’s largest Critics of the insurance pro- million, or possibly even $25 mil- crease commercial vehicle safety. it did so by a multiple of five. If motorcoach insurer. posal have long contended it is a lion, it would have a chilling effect Some have speculated the that happens this time around, “That would make it very hard thinly veiled attack on small busi- on small operators, as well as indi- FMCSA will seek to double the re- we’re talking about a $25 million to start-up a new bus company, and ness; that its likely purpose is to viduals trying to enter the busi- quirement for motorcoaches to minimum. smaller operators — with 1 to 15 reduce the number of small bus ness, industry executives contend. $10 million from the current $5 If a $10 million minimum re- units — would find it very diffi- operators and limit the number of The Federal Motor Carrier million, and to increase the mini- quirement is approved for buses, it cult to obtain coverage,” said Ste- new operators. Safety Administration has been mum liability coverage for over- could result in a 60 percent in- ven O’Shea, a marketing represen- CONTINUED ON PAGE 18 c Electronic logging devices: What’s the big deal? Automakers try EVERYWHERE — The inevi- to put the whole tability of federally mandated electronic logging devices already world on wheels has sunk in for a handful of motor- DETROIT — The nation’s car coach operators. builders, which dealt the bus in- While comments filed with the dustry a huge blow in the 1950s feds this past summer suggest and 60s when they put unprece- many carriers and their drivers dented numbers of Americans be- would rather park their vehicles hind the wheel of autos, are threat- than comply with the looming Big ening the industry again with their Brother mandate, early adopters of super aggressive marketing. the technology say it’s not that This year they are offering big bad. discounts, plus six- or seven-year In fact, they like it. loans, in some cases, to buyers “It has been outstanding. We who would have been turned down are very pleased with it,” reports in the past, to attract millions to Jeff Polzien, president of Red Car- their showrooms and get them in pet Charters in Oklahoma City. the driver’s seat. “The drivers really like it. It The auto industry is pushing saves them time, eliminating hav- hard to sustain its post-recession ing to fill out all the paper logs. I comeback, with carmakers resort- think there was probably some ing to tactics that some experts warn skepticism among the drivers at will lead to trouble down the road. first. We addressed that with some

Photos by Fred Rayman Vehicle discounts have risen intensive driver training,” ex- Rick Whipple, safety and training manager at Red Car- con Technologies’ electronic logging device designed 5.5 percent from a year ago, even plained Polzien. pet Charters in Oklahoma City, demonstrates a Sau- to ­provide accurate reporting of driver activity. as the industry continues to add “If we tried to go back to paper factory capacity. logs now I think there would be a Congress ordered the FMCSA contends. A 256-page proposed personnel and commercial vehicle But the average price of a car mutiny. I’m exaggerating, but it more than two years ago to come rule was issued in March. inspectors. keeps rising, too, forcing some cus- does save them a lot of work,” he up with such rule. Technical specifications in the Many of the devices also can tomers to borrow for longer terms noted. The proposed rule is to take ef- proposal require that the electron- track vehicle location through au- — like seven years — to keep pay- The Federal Motor Carrier fect two years after a final version ic logging devices record date, tomatic positioning services — ments small. And automotive lend- Safety Administration currently is is adopted — possibly late in time, location, engine hours, mile- satellite-based global positioning ers are making more loans to peo- wading through a rule-making 2016. age, driver and vehicle/carrier systems or land-based systems or ple with low credit scores. process to impose regulations that The devices will improve en- identification, and the all-impor- both. On top of that, more than a would mandate paper driver log- forcement of driver hours-of-ser- tant driver time on duty, plus have Additionally, EDLs can calcu- quarter of new buyers are choos- books be replaced with electronic vice rules, thereby reducing fa- the capability to make the infor- late fuel usage and monitor such ing to lease, a historically high logging devices. tigued driving, the FMCSA mation available to enforcement CONTINUED ON PAGE 16 c

CONTINUED ON PAGE 18 c

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For more information or to add Van Hool to your eet, contact ABC Companies at: 877.427.7278 option 1, or visit www.abc-companies.com Bus & Motorcoach News INDUSTRY NEWS November 15, 2014 3 Workers get help from employers to buy health coverage NEW YORK — In an era of ance, coverage that easily could be individual coverage, a sign to them quired to comply with the new deal on government-run health in- lackluster or no growth for many better than what the employer that many people are losing cover- federal healthcare law known as surance exchanges, especially if small businesses, any increase in could provide. age at work. the Affordable Care Act, or they qualify for government hand- costs is unwelcome news. Health insurer Wellpoint said The brokerage HealthMarkets Obamacare. outs that will lower premium costs And, so it is with group health last month its roster of small busi- Inc. reports it has had a 40 percent As those policies come up for for individuals and families. insurance premiums. nesses has shrunk by 12 percent pickup in applications for individ- renewal, owners are having to de- The government will subsidize While the pace of premium in- this year. ual insurance. cide whether to buy new insurance coverage on the exchanges for in- creases for employee healthcare Nearly 3 percent of 1,600 “We’re seeing this happen with that complies with Obamacare dividuals earning up to $45,960. coverage appears to have slowed small businesses surveyed by the increasing frequency…,” Ken Fa- requirements. The income limit for a family of in many parts of the country, any Society for Human Resource sola, CEO of HealthMarkets, The healthcare law exempts four is $94,200. rise in premiums still represents a Management said they plan to based in North Richland Hills, companies with fewer than 50 Giving workers extra compen- challenge for lots of small firms. give employees subsidies next Texas, told a news service. workers. But many smaller com- sation to help buy insurance can Which may account for the year so they can buy their own If policy cancellations do rise panies provide health coverage be- result in higher income taxes for growing number of small business coverage on private insurance this fall, it would likely be due to cause insurance is a benefit that the employees, and it can also mean owners who are forgoing group exchanges. the fact many small businesses re- helps retain staffers and recruit top employers will owe payroll tax on coverage and giving their employ- Insurance brokers report they newed their coverage before Jan. talent. the money. Benefits attorneys and ees money to buy their own insur- are getting more inquiries about 1, 2014, when policies were re- But workers may get a better CONTINUED ON PAGE 15 c Academy Express buys New York City coach companies NEW YORK CITY — Acade- N.J., the largest family-owned name, as well as MCIZ’s contract tween Glen Cove, N.Y., and New Not included in the deal were my Express has wrapped up the coach company in North America with the New York City Board of York City. the more than 50 buses owned and purchase of two of the city’s major and the third-largest motorcoach Education, its bus stop in New Under MCIZ’s contract with operated by Go Bus and MCIZ. motorcoach operators, Go Bus and operator. York City, and its licenses for two the city board of education, it pro- Those were being turned over to MCIZ Corp., which is the No. 1 Approval of the deal by the park-and-ride facilities in Nassau vided transportation for students ABC Companies for disposal. supplier of charter buses to the U.S. Surface Transportation Board and Suffolk counties, N.Y. and teachers on day trips for out- According to information New York City Department of was delayed for a spell because of Go Bus and MCIZ primarily ings and sports or other events. Academy provided to the Surface Education. disclosure requirements. provided special and charter oper- Academy said it would be pro- Transportation Board, Zev and The two companies operated Under the transaction, Acade- ations within New York state. viding most, if not all, of the op- Renee Marmurstein, and the ZRM under the names Go Buses and my acquired the interstate and in- Go Bus also provided regular- erations previously provided by Family Trust controlled a corpora- Video Tours. trastate operating authorities of Go route service between New York Go Bus and MCIZ, as well as hir- tion that owned Go Bus. Zev Mar- Academy Express is a subsid- Bus, its customer lists, telephone City and Cambridge and Newton, ing its employees, including up- murstein directly controlled iary of Academy Bus of Hoboken, numbers, websites, and trade Mass., and commuter service be- wards of 175 drivers. CONTINUED ON PAGE 22 c

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Canadian border guards screen for Ebola at crossings VANCOUVER, British Co- Border Services Agency border the world. travel, so it seems to be to be a rea- When it comes to beefing up lumbia — Canadian border guards guards, are being thrown in with Dr. John Millar with the Public sonable precaution.” screening, he says infrared camer- are now screening for the Ebola the usual where-you-went and Health Association of British Co- He says border guards should as and thermometers used in other virus at land crossings between what-do-you-have-to-declare lumbia thinks it’s a good idea to be checking everyone. countries to screen for Ebola Washington state and British questions. verbally screen for the Ebola “When you’re coming across aren’t necessary along the Cana- Columbia. The guards at Canadian cross- virus. He notes it doesn’t take a lot the border at Blaine (Wash.) for dian border. Travelers entering Canada are ings like Peace Arch and Pacific of time or cost anything. example, the border guards don’t The Peace Arch Border Cross- being asked whether they’ve trav- Highway are specifically asking if “If you’re going to be screen- know if you’ve been across shop- ing between Surrey, British Co- eled to West Africa or made con- travelers are coming back from ing for people coming into the air- ping or you’ve come in from West lumbia and Blaine is one of the tact with anyone who has. West Africa or if they’ve had con- port, it’s a reasonable precaution Africa, so they can’t (discern) that busiest land crossings between The questions, from Canada tact with anyone from that part of to be extending that to land-based until they ask.” Canada and the U.S. More states are taking a look at road mileage taxes While Congress continues to consortium member. to approve a pilot program, which happen as the gas tax did, from the first state to tax gasoline and for kick the can down the road when it “It’s obvious that the gas tax is will start in 2017. ground up,” Frankel said. more than half a century has taxed comes to developing a long-term not going to bring in the revenue Washington lawmakers have “Little by little, states will con- truckers on mileage not diesel pur- strategy for funding U.S. highways, that we need long term,” she said. authorized planning for a pilot, al- sider it, [and] it’ll become more chases. The first federal gasoline interest in vehicle-mileage taxes to “We’ve got to switch to a metric though no launch date has been pervasive and, eventually, like the tax was in 1932. augment or replace fuel taxes con- that allows us to capture that reve- approved. In 2009, Nevada did a gas tax, I think it will get adopted Basso, a private consultant and tinues to expand among states. nue by…how much you’re using two-year mileage-tax pilot. at the federal level.” former official at the American Membership in a group creat- the road, as opposed to what fuel It’s not surprising states are Jack Basso, an expert in trans- Association of State Highway and ed last year to explore the mileage- you’re using.” leading on the mileage-tax issue, portation funding and chairman of Transportation Officials, said tax alternative — the Western States are all looking at the said Emil Frankel, a visiting schol- the Mileage Based User Fee Alli- mileage-tax talk is not confined to Road Usage Charge Consortium same trend data that show gas- ar at the Bipartisan Policy Center ance, agrees. Western states. — reached 11 states this past powered cars reaching 30, 40, 50 in Washington, D.C., and assistant “The states will be the ones to The alliance he is chairman of summer. miles to the gallon and electric and secretary for transportation policy incubate this thing and probably made presentations in Florida and The driving force behind the hybrid cars becoming more avail- during President George W. Bush’s move before the federal govern- Minnesota last year. consortium’s growth, however, is able and affordable, she noted. administration. ment ever does,” Basso said. When his state joined the con- not Congress’ failures, says Reema Oregon has said it will begin “I remain pretty confident that, “If you look at history, gas tax sortium this summer, Idaho Direc- Griffith, executive director of the its second mileage-tax pilot pro- over the long haul, we will convert and everything else, it’s been gen- tor of Transportation Brian Ness transportation commission in gram next summer. In September, to a more direct mileage-based erally that way.” said it did not mean the state would Washington state and a founding California became the latest state user fee, but I think that’s going to Oregon in 1919 became the necessarily seek a mileage tax. “Idaho should explore every alternative to the gas tax to deter- Enjoy summEr mine which is most viable for Ida- hoans,” he said. ThE fun nEvEr EnDs ALL yEAr rounD! Meg Ragonese, a spokeswom- an for the Nevada Department of Transportation, said Nevada is part of the consortium because it is exploring a sustainable trans- portation funding source. “It’s something we feel is very important to continue to collabo- MCompargaritavi DoLLLLAe restaurantrs rate and evaluate methods,” LanDshark bar & griLL Ragonese said. 5 o’CLoCk soMewhere Casino bar Other states in the consortium MargaritaviLLe sLots & tabLes are Montana, Utah, Colorado, Ari- retaiL shops anD More! zona, Texas and Hawaii. Much of the ground transpor- tation industry has been skeptical You Can aLso earn & use Your CoMp DoLLars at of mileage taxes. ThE fun is hErE AT rEsorTs CAsino hoTEL In California, for example, leaders of the state trucking asso- The fun is here at the new Resorts Casino Hotel in Atlantic City! 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New settlements — It’s prob- WASHINGTON cidence the U.S. ably not a coin tice announced Department of Jusonth in four ac- Large operators appear ready for critical ADAsettlements deadline last m tions it brought agrsainst and three a major mo- torcoach operato 100% accessibilitygh-visibility r for apparent For 14 years, a hi group tour operatoAmericans with .S. motorcoach violations of the segment of the Ud Oct. 29, 2012, industry has ha nge planning Disabilities Act. appear to be Bet with your head not over it. without us! The settlements circled on its long-ra on the Internet timed to show up calendar. ch is now fast That date, whi just before all mottoorcoach file annual opera- re- approaching, is when large, fixed- tors are required the ADA. (See ports mandated by route operators mususest have wheelchair 100 per- cent of their b Oct. 1 Bus & Motorcoach accessible News.) ResortsAC.com 1.800.772.9000 Whether they have accessible. after Oct. 29, hether they pro- buses or not, or w That means that disability should vice or not, all any person with a ticket on any vide accessible sertors are required be able to buy a at any time, and motorcoach opera by Oct. 29, or Gambling Problem? Call 1.800.GAMBLER. to file ADA reports Greyhound bus, able to access ty of large fines, managed by Mohegan Sun be assured of beingpulls into a sta- face the possibili ngly becoming that coach when it . or what is increasiustice Depart- Call 866-930-8421 tion or up to a curb oes for more commonplace: J tating ADA com- And the same g ment lawyers dic ents as part of than 30 other large operators.appears to September 1998. lly went into pliance requirem. Though no one mpliance with ac- When the law rinitia 2000, the rules legal settlements industry sources it will be in co know for certain, mistic that all us As- effect in Octobe for large carriers That is what happesed motorcoachned to three cessibility standards,” Bus a &company Motor- are cautiously optihe operators re- president of the American ludesB ex- were fairly simple ute service. Orlando, Fla.-ba nth, as well as but a handful of t rail- spokesperson told that offered fixed-rodisability who operators last mo ᭤ mplaint with the sociation, whose board inc CONTINUED ON PAGE 20 coach News. , the industry A person with a quired to be co Disabilities Act ecutives from Adirondack Tter Pan r would have to In the mid-1990s29, 2012, ADA ᭤ Americans with ve all of their Academy used a wheelchaiCONTINUED ON PAGE 20 ways, Jefferson Lines, Pe negotiated the Oct. rule will, in fact, leha on Oct. 29. iers. e federal govern- on Bus Lines, Coach USA, deadline with th fixed in law in or email changes to: coaches accessib Bus and other big legacy, the carr nation’s ment and it became “I think they’re definitely.…By Greyhound Lines re going carrier, “believes track to meet the deadline largest intercity Employee misclassification and large, I would say theyr Pantuso,a breathing room” to be all ready,” said Pete represents a chal- bankrupts majorfiling toCarey secure “vers wonunit the large Del. — One after 16 of its dri every complaint WILMINGTON, n a lawsuit claim- from River Cit- lenge for the small operator. ivisions of Carey arbitration award i isclassified as a charter ser- of the largest d rejected an appealit, also of Pierre, That’s because in world’s biggest ing they had been ractorsm and were S.D. operator wins charter decisionTA, which has a International, the ies Public Trans e illegal service vice case, the F independent cont nal wages and which provided th with virtually all chauffeured serviceptcys company, protection has entitled to additio Four years later! tedly continues cozy relationship sit agencies it ees. One of the in 2008, and repor filed for bankru $4.5 million ar- benefits as employ al Chief Fi- PIERRE, S.D. — te the charter ser- of the public tran after being hit by a first — formal to regularly viola very high bar for for treating its Carey Internationitchell Lahr said funds, has set a bitration award first — if not THE by a private bus vice rule. t (the FTA) nt contractors nancial Officer M ge from the ar- [email protected]. t bears the drivers as independe complaints filed a public transit “I’m pleased abou the potential damawas compounded Dawnita Forell, “The complainan rather than as employees.L.A. Inc. list- operator against decision,” said f,” says Rogoff. bitration award California stiff- ll Limousine & burden of proo t must prove its Carey Limousine agency for providiunderng illegal the federal char- who co-owns Fore der $500,000 and in January when mployers that usband, Charles. “The complainan derance of the ed assets of un $150 million in ened penalties on e ter bus service le adopted four Bus with her h a Band-Aide ers. charter service ru case by a prepon debts of nearly in bankruptcy misclassify work ot agree that go has finally “But it’s like putting ᭤ and a half years a evidence.” rators, the documents filed “The debtor does n on an artery.” seven or eight Like other small ope court here. based Carey CONTINUED ON PAGE 20 been decided. r of the Fed- During the past t have the time, Forells do no The Los Angeles-de the Chapter 11 The administratoinistration, Peter es to continually years, the Forells haveule complaintslodged nu- money or resourc ᭤ division said it ma eral Transit Adm CONTINUED ON PAGE 18 d a strong ruling merous charter r ies Public Transit. M. Rogoff, issue A website last against River Cit lose some, but — posted on the FTof Forell Limou- They win most, month — in favor sine & Bus Service of Pierre, and Bus & Motorcoach News THE DOCKET November 15, 2014 5 25-mph speed limit in Big Apple: No problem for buses NEW YORK CITY — Lower Traffic is so heavy that you just can’t six buses in Manhattan, so he ny that sends charter buses into tainly help.” speed limits implemented in New speed. And the condition of the roads checked their speed. Manhattan, agrees that congestion LeBron said his only concern is York City earlier this month aren’t in Midtown Manhattan (including “The fastest one was going 14 prevents buses from driving too fast. that the city will use the lower speed expected to be a problem for motor- potholes and construction plates) mph, and 7 mph was typical,” he But he said that he supports the limits to generate revenue through coaches, mainly because it’s too makes it impossible to go 25.” said. “I don’t see the change as a big city’s effort to reduce accidents be- increased enforcement and speeding congested to drive buses very fast in Neustadt said when he first issue for our industry.” cause high speed and distracted pe- tickets. Manhattan, say coach operators. heard the city was planning to lower Godfrey LeBron of Paradise destrians “is a recipe for disaster. In “If they enforce it fairly, yes, at The New York City Department the speed limit to 25, he had five or Travel, a Long Island, N.Y., compa- theory lower speed limits can cer- first blush, it can work,” he said. of Transportation lowered the default speed limit — the highest allowed where none is posted — from 30 mph to 25 mph as part of Mayor Bill de Blasio’s Vision Zero initiative to re- duce traffic accidents in the city. According to the city DOT, 250 people are killed in vehicular crash- es each year in the city, and another 4,000 are seriously injured. Many of the incidents involve pedestrians, in- cluding a rash of city transit bus- pedestrian accidents. “Obviously there is an issue in New York City with pedestrians,” said Michael Neustadt, president of Coach Tours of Brookfield, Conn., which runs 5 to 10 buses into Man- hattan daily. “Frankly, I don’t see speed as being a major part of the problem. Ohio increases tax deduction COLUMBUS, Ohio — The personal income tax deduction the state allows owners of small busi- nesses has been increased. For the 2014 tax year, those re- porting income from corporations, pass-through entities and rentals may deduct 75 percent of the first $250,000 in business income (for married taxpayers filing jointly); for other taxpayers the deduction is 75 percent of the first $125,000 of income. After 2014, the deduction re- verts to 50 percent. A new law also increases per- sonal exemptions for most Ohio taxpayers and moves up to tax-year 2014 a reduction in the top individ- ual tax rate that was to take effect next year. Illinois prohibits quotas for tickets SPRINGFIELD, Ill. — New legislation in Illinois prohibits state, county and local law enforcement agencies from requiring any em- ployees to issue a certain number of traffic citations in a given period, or evaluating an employee’s perfor- mance on the basis of ticket quotas. The law was adopted by ex- tremely large margins. It goes into effect Jan. 1. 6 November 15, 2014 THE DOCKET Bus & Motorcoach News Congressmen blow whistle on testing for sleep apnea WASHINGTON — Some or- ment is adopted pursuant to the subsequently rescinded on April Former FMCSA Administrator sleep tests based on a dozen crite- ganizations that train certified rulemaking proceeding.” 27, 2012).” Annette Sandberg told a transpor- ria such as neck size or “family medical examiners are skirting The language in the law is The FMCSA National Registry tation conference in September history of sleep apnea.” federal law by telling examiners to clear: There is to be no mandate or of Certified Medical Examiners there had been a “significant The lawmakers say the FMCSA test over-the-road bus and truck guidance for apnea testing without went live in May, requiring motor- spike” in sleep apnea testing has a responsibility to fully vet the drivers for sleep apnea, a pair of going through the formal rulemak- coach and truck drivers to obtain among commercial vehicle drivers organizations that train the examin- U.S. representatives have asserted ing and public comment process. their driver physicals and medical as a result of the new protocols the ers and make sure everyone follows in a letter sent to the Federal Motor “It has come to (our) attention, cards from a certified examiner. FMCSA issued when the certifi- the directive of Congress. Carrier Safety Administration. however, that organizations that pro- cated medical examiner program Bucshon and Lipinski are urg- Reps. Larry Bucshon, R-Ind., vide training for certified medical Testing reported was launched. (See Oct. 15 Bus & ing the FMCSA to take three steps and Dan Lipinski, D-Ill., referred examiners are circumventing Since then, many motorcoach Motorcoach News.) to deal with the issue: to HR3095, a bill passed by Con- HR3095,” the lawmakers said in their operators have told the United Mo- Bucshon and Lipinski also • Communicate to all approved gress and signed by the president letter addressed to acting FMCSA torcoach Association that their med- point out in their letter that some training organizations that examin- in October 2013, that prohibits the Administrator Scott Darling. ical examiners are ordering sleep medical training organizations are ers are not to be instructed to follow FMCSA from “implementing or “Specifically, the instructions tests based on a driver’s weight, associated with sleep labs. any specific steps with respect to enforcing a requirement providing they are providing clearly indicate body-mass index, neck size, over- The lawmakers noted that a sleep apnea testing and treatment. for the screening, testing or treat- that examiners should follow the bite, snoring and other criteria. Southern California company • Instruct approved training or- ment of individuals operating obstructive sleep apnea guidance Trucking industry groups have called REM Sleep Labs provides ganizations to remove all referenc- commercial motor vehicles for originally published by the said they have received similar re- “DOT Guidelines for sleep apnea” es to MRB, MCSAC and FMCSA sleep disorders only if the require- FMCSA on April 20, 2012 (and ports from their members. and it instructs examiners to order recommendations on sleep apnea from their training materials. • Provide specific instructions Feds expected to consider ‘alternative compliance’ to examiners who have already SAN DIEGO — Jack Van what we think could be some type ance,’” Van Steenburg added, not- Besides pursuing an alterna- been trained to correct the previ- Steenburg, chief safety officer at of technologies and programs that ing that a date has not been set for tive-compliance rule, Van Steen- ous training they received. the Federal Motor Carrier Safety the industry has in place and what when to seek comments. burg told the trucking executives “It is imperative that FMCSA Administration, said he expects the benefits are,” Van Steenburg Responding to industry con- the agency is moving ahead on is- address these issues as soon as the agency to seek input from the told reporters at American Truck- cerns, the Commercial Vehicle suing a final rule on electronic possible,” the lawmakers stated. public in the coming months on an ing Associations’ conference here Safety Alliance organized a group logging devices, implementing “These faulty training courses are keeping qualified drivers off the “alternative compliance” program last month. a few years ago to examine alter- Phase III of the Compliance, Safe- road. We would request a written aimed at giving carriers and driv- The notice would appear in the native compliance, specifically ty, Accountability program, and response as to how FMCSA plans ers credit for installing safety Federal Register to “get recommen- ways carriers could get credit for issuing a notice of proposed rule- to address these issues and their technologies. dations” on “what programs would adopting certain voluntary drug making on motor carrier safety fit- progress in this endeavor.” “The plan is to really identify be considered ‘alternative compli- testing programs. ness determination. CONTINUED ON PAGE 14 c

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Register prior to approval, said years,” Hathaway told a leading posed rule in April that would quired the FMCSA to drop the ex- Those drivers who have been Katie Hathaway, managing direc- trucking publication. eliminate the requirement that in- emption requirement altogether. It granted exemptions must comply tor of legal advocacy for the Amer- “But we’re in a tough position sulin-treated interstate commercial took the FMCSA more than a year with requirements ranging from ican Diabetes Association. advocacy-wise because the ex- vehicle drivers with diabetes apply to come up with a rule ending the carrying insulin and glucose moni- The proposal to drop the ex- emption program is working. But for a special exemption to be issued exemption requirement. tors with memory to maintain a emption requirement has been we would like for this [to be] taken a medical certification card. At the time, motorcoach indus- daily record of actual driving time years in the making, and has been out of the exemption process be- For more than 30 years, ending try groups and some big operators to correlate with daily glucose delayed several times. cause it’s just another hurdle for in 2003, drivers with diabetes who opposed the change. (See Aug. 15, measurements. Drivers also are re- The FMCSA has attributed the somebody to keep their job.” used insulin were banned from 2006, Bus & Motorcoach News.) quired to report to the agency any delays to a “lack of staffing and Hathaway estimates that more driving commercial vehicles in in- The FMCSA medical review episode of severe hypoglycemia, unanticipated issues requiring fur- than 3,100, mostly Type 2 or terstate commerce. board has supported the exemp- on or off the road. ther analysis.” “adult-onset” diabetic drivers, In 2004, the FMCSA began ac- tion program, but not for passen- The process of obtaining an “This issue of appropriate have been granted exemptions to cepting applications for diabetes ger carrier drivers or drivers who exemption often takes three to medical certification or evaluation date and have not had significant exemptions, allowing drivers to be hauled hazardous materials. four months, but the agency can of individuals with diabetes, and problems managing their condi- given medical certificates on a Through last year, nearly 4,300 take up to six months to complete particularly those that use insulin, tion while driving. Indiana Supreme Court to hear case on school bus fees INDINAPOLIS — The Indi- public education. The pay-to-ride arrangement receive monetary damages. corporations to transport these stu- ana Supreme Court has agreed to The case stems from a failed was ended within a year. That was reversed in part by dents but exclude all others,” the hear a case regarding whether it’s tax-increase referendum. Follow- The state legislature also later the Court of Appeals, which main- Court of Appeals opinion said. constitutional to make parents pay ing the vote, Franklin Township banned school corporations from tained the decision on monetary The state Supreme Court has for their children to ride the bus to Schools stopped running its free charging transportation fees. damages but declared the bus fees not yet set a date to hear the case. public schools. school buses in 2011-12. But families already had filed unconstitutional. After the hearing, it could choose to The court could reconsider a To bridge its budget problems, a class-action lawsuit against the The Court of Appeals pointed not take up the case, or it could issue state Court of Appeals ruling in the township arranged for school bus fees, which state Attorney to a state mandate for schools to a decision either upholding or over- June that deemed school bus fees bus service with a private contrac- General Greg Zoeller had called bus homeless, foster-care, special- turning the lower court’s ruling. violated the state constitution and tor, which charged fees for stu- unconstitutional. needs and even some private- Several school corporations cited the state requirement for dents to ride the bus. A Marion Superior Court school students. have recently passed referendums school corporations to provide It cost nearly $500 to transport judge decided the fees were OK “It is hard to image that the leg- to fund buses in the face of budget transportation as part of a free one student for the school year. and families who sued would not islature meant to require our school shortages. LCD MONITORS | AUDIO • VIDEO SOLUTIONS | RADIO • PA SYSTEMS | OBSERVATION SYSTEMS | LCD MONITORS SUPPORT SPECIALIST Distinctive Systems is experiencing continued rapid growth BUS ELECTRONICS as a leader in supplying the Motorcoach and Travel Industry with superior software and exceptional support services. We are currently seeking a unique individual, located within the United States, to join our Support Services group initially, in the role of Implementation, Training and Support Specialist. The ideal candidate would transition into a Business Development and Management role in the future. 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5440_Lancer_Rockslide_BusMotorCchNws_050514.indd 1 5/5/14 3:30 PM 10 November 15, 2014 NEWS ANALYSIS Bus & Motorcoach News Now, it’s hotels that are playing the airline-fee game NEW YORK CITY — Ameri- advance, skipping lines at security, from such add-ons, 6 percent more don’t have a flight until after din- says Hanson. ca’s hotels are apparently going and boarding early. than in 2013 and nearly double ner? Hotels once stored luggage as U.S. hotels last year took in fee happy as they attempt to play Hotel surcharges predate the that of a decade ago, according to a courtesy. Now, a growing num- $122.2 billion in room revenue, catch up with the airlines. recession, but recently inn keepers a study released by Hanson. ber charge $1 or $2 per bag. according to the travel research For many travelers and those have been catching up to the rest Nearly half of the increase can Some budget hotels charge company STR. Fees added an who book hotel rooms, the list of of the industry. be attributed to new surcharges $1.50 a night for in-room safes. extra 2 percent in revenue, but hotel surcharges is growing, even “The airlines have done a real- and hotels increasing the amounts Convincing a front desk em- Hanson notes the majority of that for items that don’t get used. ly nice job of making hotel fees of existing fees. ployee to waive a fee at check-out money is pure profit. Guaranteeing two queen beds and surcharges seem reasonable,” Hanson says anyone using is getting harder. Fees are more es- Perhaps nowhere are hotels or one king bed can result in a fee. Bjorn Hanson, a professor at New hotel services needs to be ‘‘extra tablished and better disclosed, and pushing fees further than in Las Checking in early or checking York University’s hospitality attentive’’ to the fine print. hotel employees are now trained to Vegas. Forget resort fees. Those out late can produce a fee. school, told one news service. Fewer and fewer services come politely say no. are taken for granted there. Don’t need the in-room safe? This year, hotels will take in a for free. “It’s the most difficult it’s ever Resort casinos like The Bella- There still may be a charge record $2.25 billion in revenue Need to check out by noon but been to get a charge removed,” gio are learning from airlines and And the overpriced can of soda selling enhancements. may be the least of the issues with Want to skip the notoriously the hotel minibar. Hotel occupancy climbing, rates, too long Las Vegas check-in lines? Travelers and those who book HENDERSONVILLE, Tenn. only 5.6 percent. and the vast majority of major That will be $30 extra. Want to rooms are finding it harder to an- — The U.S. lodging industry will With U.S. hotels achieving all- markets will have surpassed their check in early? That’s another $30. ticipate the true cost of a stay, es- achieve 65 percent occupancy in time high occupancy levels, PKF pre-recession levels of RevPAR, Check out late? Also $30. pecially because many of these 2015, the highest national occu- Hospitality Research believes ho- or revenue per available room, a And if you want two queen charges vary from hotel to hotel, pancy rate since the hotel research teliers will be able to increase common performance metric used beds or one king bed, it will cost even within the same chain. firm, STR Inc., began reporting their average daily rates at an aver- by the hotel industry. extra to guarantee your preference. Coming out of the recession, data in 1987. age annual pace of 5.7 percent RevPAR is calculated by di- For an extra — you guessed it — many segments of the travel indus- At the same time, PKF Hos­ from 2015 through 2017. viding a hotel’s total guestroom $30, the Bellagio will lock in three try grew fee-happy. pitality Research projects that by PKF Hospitality Research in- revenue by the room count and the room preferences such as bed type, Car rental companies charged the end of next year demand for dicated that its forecast applies to number of days in the period being requests to be near or far away from extra for services such as electron- lodging accommodations will almost all aspects of the U.S. lodg- measured. the elevators, rooms on a high or ic toll collection devices and navi- have increased 25.8 percent since ing industry. Several major markets, includ- low floor, or the option to have qui- gation systems. the depths of the Great Recession By the end of this year, all six ing Seattle, Los Angeles, Houston, eter non-connecting rooms. Airlines gained widespread in 2009. national chain-scales (economy, Pittsburgh and Miami, will sur- Oh, yes, and some hotels have notoriety for adding fees for At the same time, the supply of midscale, upper midscale, up- pass their all-time record occu- even started charging to print an checking luggage, picking seats in hotel rooms will have grown by scale, upper upscale and luxury) pancy levels this year or next. airline boarding pass. Penalty policy for negative online reviews backfires on hotel HUDSON, N.Y. — The New icy of the Union Street Guest tained in the fine print of booking Around 10 a.m., the hotel aver- bashing the hotel directly for its York Post reports that a boutique House in Hudson — a community contracts. aged three stars on Yelp from 13 policy. By noon, there were actually hotel’s effort to limit bad online re- of roughly 8,000 that’s a little more A review of the incident by the reviews. more than 460 reviews on Yelp, a views, followed by its not-so-sub- than 100 miles north of New York Columbus, Ohio-based law firm of But, a refresh of Google at 11 large majority of which were one- tle attempt at humor, bombed City — to persuade guests at a Vorys Sater Seymour and Pease a.m., showed a drop in the proper- star reviews posted that morning. badly on both fronts. wedding from posting a negative showed this: Anyone who Googled ty’s Yelp rating to 1.5 stars from An attempt by a hotel executive The online fireworks began review of the property. the hotel early on Aug. 4, shortly 107 reviews. By noon, Google list- tried to explain away the reaction early on the morning of Aug. 4, not The hotel had adopted a policy after the Post article appeared, ed a one-star rating from 353 by suggesting the wording of the long after the appearance of an ar- of saying it could deduct $500 for would see favorable user ratings for reviews. Post article obscured the humor in ticle in the Post headlined: “Hotel every negative review posted on- the hotel: a four-star average on Throughout the morning and the situation. Fines $500 for Every Bad Review line from the deposit of a party that TripAdvisor­ from more than 100 into the afternoon hundreds of peo- (It was also noted the hotel Posted Online.” booked the hotel for a wedding. reviews and a 4.2 rating from ple posted one-star reviews on Yelp would sometimes post reactions to The article reported on the pol- The policy apparently was con- Google from a smaller sample size. about the hotel, almost exclusively CONTINUED ON PAGE 12 c

ISSUE NO. 273 David Moody How to contact us Holiday Tours Randleman, N.C. To submit or report news, Letters to To advertise: Interested in placing an ad, Michael Neustadt the Editor, articles, news releases or to and new to Bus & Motorcoach News? Coach Tours Brookfield, Conn. report corrections: Call: Jamie Williams at (352) 333-3393 A PUBLICATION OF THE UNITED MOTORCOACH ASSOCIATION E-mail: E-mail: [email protected] Jeff Polzien Red Carpet Charters [email protected] Staff Advisory Board Oklahoma City Fax: (405) 942-6201 Existing advertisers, or to submit William Allen Callen Hotard Tom Ready Mail: 3108 NW 54th Street Editor & Publisher: Victor Parra Amador Trailways Calco Travel Ready Bus Lines advertising materials: Sacramento, Calif. Geismar, La. Oklahoma City, OK 73112 Senior Editor: Bruce Sankey LaCrescent, Minn. Call: (866) 930-8421 Call: Johnny Steger at (866) 930-8426 Brian Annett Larry Hundt Brian Scott E-mail: Sales Director: Johnny Steger Annett Bus Lines Great Canadian Trailways Escot Bus Lines Sebring, Fla. Kitchner, Ontario Largo, Fla. To subscribe or inquire about your [email protected] Mail: 2200 N. Yarbrough, Suite B Industry Editor: Ken Presley James Brown Sr. Dale Krapf Dennis Strief subscription: Magic Carpet Tours Krapf Coaches Vandalia Bus Lines Box No. 336, El Paso, TX 79925 Associate Editor: Ellen Balm Richmond, Va. West Chester, Pa. E-mail: Caseyville, Ill. [email protected] Art Director: Mary E. McCarty Dave Dickson Godfrey Lebron Alan Thrasher To contact the Elite Coach Paradise Travel Thrasher Brothers Trailways Fax: (405) 942-6201 United Motorcoach Association: Ephrata, Pa. Hicksville, N.Y. Birmingham, Ala. Mail: 3108 NW 54th Street Editorial Assistant: Michele Nosko Call: (800) 424-8262 Gladys Gillis Joan Libby Tim Wayland Oklahoma City, OK 73112 Starline Luxury Coaches Cavalier Coach Trailways Online: www.uma.org Editorial Assistant: Maggie Vander Eems ABC Companies Call: (866) 930-8421 Seattle Boston, Mass. Faribault, Minn. Editorial Assistant: Greg Lange Bob Greene Marcia Milton T. Ralph Young ©2014 by the United Motorcoach Association. Reproduction in whole or in part without Amaya-Astron Seating First Priority Trailways Young Transportation written permission is prohibited. Accountant: Ted Williford Omaha, Neb. District Heights, Md. Asheville, N.C. 11Bus &November Motorcoach 15, News 2014 OPINION NovemberBus & Motorcoach 15, 2014 News11 Looking at safety, reliability through the correct lens By Dave Millhouser contribute to their comfort and “should have an easily locatable Conversely, it’s critical you not work in an envi- well-being is an extravagance. storefront, repair facility, website, convince yourself to spend big ronment that is Perched at 8,000 feet up 14,200- There’s nothing wrong with a phone number, or some other pub- bucks on things that are impressive comfortable and foot Mount Princeton west of Colo- bit of luxury, so long as we don’t lic face where people can go to but don’t really help provide safe, efficient, and rado Springs, our garage was a fool ourselves into thinking it is make sure the company is a solid reliable and efficient service to that they can be major improvement over the first mission critical. operator.” your customers. proud of. Any place I worked as a mechanic. Years ago I had a bit of extra Not so. Years ago, at a sales meeting, more than that is That was in my boss’s gravel cash, and bought a Rolex. Neat There’s no direct relationship we peppered our boss with re- luxury — fine in driveway, with extension cords watch, but it always ran a tad fast. between any of those things and a quests for a variety of new features our personal Dave Millhouser running out a window for electric- Confronted with the choice of “solid” operation. to be installed on the bus we sold. lives, but dangerous in business. ity and corrugated cardboard as a spending hundreds of dollars to Those things aren’t necessarily Our list was shortened dramatical- We humans are prone to fool- creeper. get it adjusted, or tens of dollars indicators of a company’s ability to ly when he insisted we estimate ing ourselves into believing that The improved facility was long for a new (and accurate) Timex… perform the REAL task, which is how many additional buses each indulgences are necessities. Buy- enough to get in half of a 35-foot you guessed it. In practical terms, safe, reliable transportation. Well- item would sell. ing or building more than we need bus. the Rolex is jewelry that also per- maintained buses, properly trained The same criteria can be ap- (as opposed to want) is a chancy During winter, you’d either forms a task. drivers and thoughtful manage- plied to decisions regarding real business that some describe as an back or nose into the garage that There are some fine coach op- ment can be provided in a variety estate and structures. How much “Edifice Complex.” the part of the coach that needed erations that have no garages (con- of ways that don’t fit that observ- does it help in fulfilling your real Back in the days when I actu- work, and drape canvas around the tracting out their maintenance like er’s parameters. mission? Are they a luxury, or do ally worked, one of my favorite door to keep out the cold. some airlines), and I’ve waddled The other point is that it’s im- they really contribute? customers was a bus line that had a A kerosene-fired salamander into a few bussy Taj Mahals popu- portant to tailor your facilities to Some errors are easily re- gigundous crystal chandelier brought the inside temperature up lated by sad coaches. the task. versed, but those related to real es- hanging in its garage. to a toasty 55 degrees. Heaven. There are two points to be Providing a comfortable work- tate generally aren’t among them. They’d purchased an existing One key to running a business made here. place can pay substantial divi- Specialized facilities are usually a building, and this jewel was part of efficiently is investing in those In response to a recent acci- dends in efficiency and morale. In long-term, expensive commitment the deal. things that actually produce value. dent, one industry observer made some cases an impressive facility that may be costly to reverse. At some point it disappeared. Decisions regarding real estate the comment that bus companies can be a marketing tool. It’s important that your people They got rid of it because it didn’t and buildings should be viewed contribute to their success. primarily in light of how they im- Falls, Ontario. Information: Ashburn, Va. Info: www.uma.org. I’ve always wondered where prove the operation, marketing and Calendar www.cutaactu.ca. that thing ended up. maintenance of the things that JANUARY 2015 Dave Millhouser is a bus indus- NOVEMBER 2014 generate value (and profits). In our DECEMBER 2014 10-13 ABA Marketplace 2015, try marketing consultant and free- case, that’s people and motor- 18 CUTA Trans-Expo, Scotia- 3-4 UMA Safety Management St. Louis. Info: www.buses.org. lance writer. Contact him by email coaches. Anything that doesn’t bank Convention Centre, Niagara Seminar, NTSB Training Center, at [email protected].

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BITZER U.S., Inc. To learn more, visit www.bitzerus.com Phone: 770-503-9226 Email: [email protected] / [email protected] 12 November 15, 2014 NEWS ANALYSIS / OPINION Bus & Motorcoach News The cannibalizing of the nation’s casino industry By Froma Harrop But that dream went bad all as competitors eat what’s left of would have spent their spare dollars yet to agree. around. each other’s lunch. By “competi- at local restaurants, theaters and The video of the Bruce Spring- Four Atlantic City casinos are tors,” we mean both the casinos and other entertainment venues. North Jersey casinos? steen song “Atlantic City” opens closing this year and a fifth may the states relying on their revenues. The new sales pitch for casinos The statesmen running New with a scene of the grand Marlbor- close, in part because of intense Atlantic City’s special tragedy rings more of desperation: If the Jersey now figure: If casinos aren’t ough-Blenheim Hotel imploding competition from newer gaming is what was traded for the casino state’s working class is going to be making it in South Jersey, perhaps into a pile of dust. establishments in nearby Pennsyl- fantasy. milked by gaming conglomerates the solution is casinos in North That was almost 40 years ago. vania and elsewhere. (See Oct. 1 Nowadays cities run entire and the states that tax them, better Jersey. How about putting them The Traymore Hotel and other Bus & Motorcoach News.) visitor campaigns around the sort that the milking take place at home “somewhere in the swamps of Jer- grand hotels were leveled in much of fabulous old architecture Atlan- than in a neighboring state. sey” — a Springsteen reference to the same spectacular fashion. Economy hurts tic City so easily discarded. Imag- Some states have valiantly man- the Meadowlands? In their place rose glass boxes Another problem for casinos ine what today’s entrepreneurs aged to hold the line. Nebraska, for The Meadowlands sit a mere 9 and concrete hulks to house new nationally is the tough economy could have done with a mythical example, does not allow full- miles west of Manhattan, a casino- casinos. for their core market — blue-collar beach resort smack in between fledged casinos even though Iowa free zone. The Atlantic City dream was and middle-income workers. New York and Washington. has placed three in Council Bluffs, New York state, however, to fill New Jersey state coffers Casino revenues in New Jer- right across the Missouri River seems to have its own plans. It is with gambling gold. sey are down 44 percent from their Keeping $$$ at home from Omaha. (Iowa’s gambling tax now considering several industri- At the time, Nevada held a 2006 high, but the business is Casino lust persists, but the ar- revenues are also falling.) al-strength casinos just north of monopoly on casinos. The plan rough everywhere. The huge gument has changed. Casinos are Massachusetts seems to be New York City (and, for that mat- was to turn Atlantic City into a Las Harrah’s in Tunica, Miss., has also rarely portrayed as a font of tax rev- succumbing and is now involved ter, the New Jersey state line). Vegas East drawing rollers — high shut its doors. enues from out-of-state pockets. In in an odd negotiation with the Mo- Jersey’s casino boosters seem and low — preferably from other The casino business is now in most of the country, casino custom- hegan Sun, an Indian casino opera- undeterred. tax jurisdictions. the advanced “cannibalizing” stage ers are increasingly locals who tor applying to build an outlet near A North Jersey state senator — Boston. mindful of South Jersey’s fear of Policy backfires news story to be deleted or filtered “While that policy may be le- Mohegan Sun already has a new competition — recently ven- out. gally supportable in some jurisdic- big-league casino in eastern Con- tured that a couple of big casinos in CONTINUED FROM PAGE 10 The lawyers had some advice: tions, often the reputational impact necticut, not far from the state bor- his part of the state “could produce negative reviews that mocked “We often find that businesses be- of that action can be extremely der. Massachusetts wants a prom- in excess of $1 billion over 10 years those who posted them.) lieve they have a legal basis to fine negative — especially if consum- ise that it will not entice the state’s to be reinvested in Atlantic City.” But the damage had been done. someone or prohibit someone ers think they are being bullied or high-stakes gamblers to its flag- Sure. If you say so. It will take some time for some of from posting negative reviews or being asked to agree to something ship in Connecticut (where casino Froma Harrop writes commen- the hostile reviews posted after the comments. they do not feel they have to do.” taxes are lower). Mohegan Sun has tary for Creators Syndicate Inc.

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Family Owned & Operated Since 1972 361 N. Main St., Miamisburg, Ohio 45342 Phone (937) 859-3331 • Fax (937) 859-7086 www.WhitworthBusSales.com 13Bus & NovemberMotorcoach 15, News 2014 OPINION NovemberBus & Motorcoach 15, 2014 News13 Social Media: Eight tips/suggestions for doing it right By Christian Riddell you open it up, you find yourself In this situation, it would be al- work the room, you may find a Motorcoach Marketing Council stuck there for hours looking at pic- Marketing Minute most unthinkable to walk in, jump group of wedding planners talking tures, making cute comments, and up on a table, cup your hands to about their businesses. If you join As a marketing consultant, one catching up on what those people your mouth, and yell at the top of this group, you may be able to pro- of the most common questions I you went to high school with, but your lungs: “We just purchased a vide some relevant thought that find myself being asked is: “How haven’t talked to since, are doing. It’s the Smart Move new charter bus. If any of you have they would stop, listen to, and en- should I be using social media more Set limits, buy an egg timer if transportation needs, we would gage with. effectively for my company?” you need to, but don’t get sucked adopt a few small changes. Try like the opportunity to be your pro- You could tell them about a It’s a good question. into the vacuum of the social building a posting schedule. Figure vider. Call us today at (555) hotspot venue for weddings that is Social media is a great tool for universe. out what you want to talk about, 555-5555.” being impacted by a parking lot businesses; unfortunately, most 2. Be consistent. how often, and then set a schedule. Of course you wouldn’t do that that is under construction, or you companies do not have a social The absolutely worst thing you Set alarms and reminders and then (or at least I hope you wouldn’t), could tell them about the liabilities media expert on staff. can do in any marketing campaign take a few minutes to make the post but this is the single biggest mis- that caterers and wedding planners The advent of Facebook, Twit- is to be inconsistent. In social when the alarm goes off. take I see made consistently in so- may have with putting people on ter, Instagram, Google Plus, and a media it is even more so. You may want to delegate this cial media. the road following an event were slew of other social media plat- In the phone book, few would responsibility to someone in the of- For old school marketers (those alcohol was served. forms has given rise to a whole ever catch on that you haven’t up- fice who has more time than you do. who began before there was an in- These are things they would new avenue for marketing that did dated your ad in 13 years, but in 3. Pretend you’re at a cock- ternet), marketing was about mak- care about. It would be unthink- not exist10 years ago. social media, when someone lands tail party. ing statements. You made a state- able to just walk into the conversa- Because it has happened so on your Facebook page and finds No, that doesn’t mean starting ment, your competition made a tion and blurt out… “we do wed- quickly, it has been hard to keep up that your last post was Happy Eas- with an extra dirty martini, it statement, and the best statement ding transportation, can we do with what should be done and how ter, and it’s November…immedi- means you need to think about won. your next wedding?” Remember, to do it. ately they will dismiss you as not what you post as if you were at a Unfortunately, many of these even though it may not feel like it Here are the top eight things relevant, and someone who could cocktail party. Social media is a marketers have tried to translate sometimes, social media is in fact you need to know to be an effec- have become a follower will move conversation, not a loudspeaker. this strategy to their social media a conversation and should be treat- tive social media marketer. on to greener pastures. Try picturing yourself at the efforts. The problem with this is ed as such with every post. 1. Don’t waste your time. Now, I know that in the motor- party right now. You walk in and that you are making statements in 4. Be professional. I like to describe social media coach industry this can be one of here are scores of people standing an environment where the public is There is a trap in social media (especially Facebook) as a deep dark the biggest challenges to over- around engaged in conversations. expecting conversation. that I like to call the “Kitten Photo hole into which to throw time. That come. Busy days turn into busy Some are in one-on-one conversa- Social content needs to be Conundrum.” is not to say you should not be doing weeks, into months, into “wow, we tions, some are in small groups, about adding value. Most companies look at their it, quite the opposite, you should. really need to update that Easter and then there are a few of the Imagine that same cocktail social media statistics like this: “I But social media can be like post to a Christmas post.” “popular” people who have gath- party again. Each group is talking did a post. It reached 14 people. sticky fly paper. Often times when But it’s important enough to ered individuals around them. about something different. As you CONTINUED ON PAGE 14 c 14 November 15, 2014 OPINION Bus & Motorcoach News Marketing Minute cial following that respects that ing content got in the way of mov- same cocktail party conversations, Don’t be so subtle they don’t and looks to you to provide rele- ing forward. Yes, unique, high- say something interesting, turn notice the plug, but don’t bash CONTINUED FROM PAGE 13 vant information about things in quality, relevant content is the around and walk away. them over the head with it either. That is bad. which you are involved. This is a peak of social media engagement. As you become more and more 8. Stop thinking social media I just liked a photo of a kitten better, long-term strategy. However, not starting because of a social resource and authority, is not for you. that has 200,000 likes. That is 5. Don’t let content stand in you can’t get around to it would be you will have more and more people I hear operators all of the time good, soooooo…I should share your way. like not playing a sport until you engaging with your content. This say “social media is not for us, our more kitten photos.” As I have helped people build could be the best in the world at it. means comments and even ques- customers don’t use it.” So, allow Off they go, sharing more kit- social strategies from the beginning The internet is filled with good, rel- tions. When someone makes a com- me to stand up on the table for a ten photos, videos of people fall- of these social platforms, I have al- evant and informative information ment, it is good practice to then en- moment and yell: STOP IT. IT’S ing down, and humorous jokes and ways been surprised at the number that your customer base would love gage further. When someone asks a JUST NOT TRUE. pictures in the effort to have more of people who sit down, create to see. Show it to them. They will question, it is mandatory to respond. OK, now that that’s out of the and more people like them. This is great social strategies, have ideas respond. Even if it is a driver, staffer or a to- way, let me give you some stats: 73 the modern day equivalent of get- about the kind of content they are 6. Listen and engage. tally loyal customer, RESPOND. percent of all internet users are on so- ting a bad haircut. going to share with their audience Just like No. 3, it’s important These are opportunities to cial media. Of people ages 30-49, 72 Don’t sell yourself short. Re- and then do nothing. Not a post. you don’t simply broadcast infor- show you are having a conversa- percent are active on social media; member you are a business and, as When I have followed up with mation, even if it is good informa- tion, not just yelling from the tops 50-60 year olds, 60 percent are ac- such, you should be building a so- them, invariably, the act of creat- tion. You can’t walk into those of tables. tive, and those over 65, 43 percent. 7. Don’t forget to sell. Facebook alone has 1.15 billion Social media is great but like users worldwide and of those, more all marketing efforts it should be than 23 percent log in at least five done with one goal in mind: to sell times a day. Your customers and fu- more charters, to more people, for ture customers are using social more money. media, and right now it is influenc- So, how do you do that without ing their purchasing decisions. jumping up on the aforementioned Social media is a powerful tool tables? and it’s not going away. Simple. First, as a business, ev- We, as the motorcoach indus- eryone knows you are there to sell try, need to be involved in creating a service or product. You are not real conversations about who and Wikipedia, and everyone will re- what we are. spect the occasional plug for your We need to show the public business. what we have to offer, and social A ratio of five informational media is a great way to do just that. posts to one sales post is a good If you are not using social way to start so you don’t over- media, start. whelm and lose the interest of your If you are, now is a great time audience. to evaluate your strategy and look Next, craft your sales messages for ways to be more engaging. To- around content. If you are making a gether, we can all help more peo- post about “10 things that make ple Go Motorcoach. planning a family reunion easier,” For more information about add a line about how you would the Motorcoach Marketing Coun- love to help them plan the transpor- cil and its programs, go to www. tation for their next family reunion. motorcoachmarketing.org. Access improved for PrePass Plus PHOENIX — Help Inc.’s Rasmussen said customers had PrePass Plus electronic toll pay- asked PrePass to provide anytime ac- ment service now allows custom- cess to toll transactions so they could ers daily access to E-ZPass include toll costs when billing. transactions. PrePass Plus allows commer- “With this addition, PrePass cial vehicles to electronically pay Plus and tolls-only customers will tolls and bypass toll plazas. The be able to access their E-ZPass toll system works with more than 80 transactions not only on a daily turnpikes, toll roads, tunnels and basis on PrePass.com but also bridges nationwide. under one account log-in,” said E-ZPass is nonprofit partner- Karen Rasmussen, president and ship of 26 toll agencies located in Registration CEO of Help Inc. 15 states. Sleep apnea Ferro had misspoken, and the ad- Now Open! ministration would seek an apnea CONTINUED FROM PAGE 6 proposal in the future. Rulemaking planned During the hearing, Sen. Roy In early June, the FMCSA con- Blunt, R-Mo., questioned Ferro firmed it planned to pursue a for- about whether the FMCSA was mal rulemaking on sleep apnea following the rules set forth in regulations for truck and bus HR3095. Ferro stated emphatical- drivers. ly that the FMCSA was following UMA Safety Management Seminar The confirmation — in the the rules. form of a clarification — fol- Ferro told the subcommittee, December 3-4, 2014 lowed a U.S. Senate subcommittee however, that medical examiners hearing at which former FMCSA have a duty to evaluate chronic NTSB Training Center | Ashburn, Virginia Administrator Anne Ferro indicat- conditions that can affect a driv- ed the administration would not er’s ability to operate a heavy www.uma.org seek a rulemaking. commercial vehicle, including ob- A spokeswoman later said structive sleep apnea. Bus & Motorcoach News INDUSTRY NEWS November 15, 2014 15 Computer security tips for small business owners SAN FRANCISCO — With generally have three choices when breach program through special- A survey by the National Small Many businesses eventually hacker attacks on computer sys- it comes to protecting themselves ized services that help businesses Business Association found that in decide they need someone they tems raging on, no business is too online. ensure they are compliant with the just over a third of companies, the can call on when something goes tiny for cybercriminals to see as a For those who mostly do sim- legally required Payment Card In- owner handles online security, wrong. potential lucrative target. ple credit card transactions, a mer- dustry Data Security Standard, or while in another third a staff mem- A popular option for midsize Yet, security for smaller com- chant services company (some- PCI DSS. ber is in charge. companies that can’t afford a full- panies is a real challenge. times called managed services) is One such service has a Popular products include offer- time tech staffer is to hire a Any small-business owner is often all they need. 69-question questionnaire, and ings from Symantec, Trend Micro consultant. by definition a jack-of-all-trades, More complex businesses tend conducts what is called a vulnera- and McAfee. However, as a company adds but a deep understanding of com- to rely on all-in-one programs, bility scan. The results of the ques- Many small-business owners computers and staff, and they all puter security is seldom among such as Norton or Symantec. tionnaire are discussed in depth turn first to Norton, a consumer- have smartphones, the need for a those skills. Still larger businesses fre- with a company representative. oriented security product owned fulltime staff member becomes “Trying to protect your com- quently outsource to an informa- Such managed service provid- by Symantec, because it’s what evident. That person often can pany’s data valuables or brand tion technology company or secu- ers are relatively easy to find, either they use on their home computers. manage the IT needs at more than without the budgets, staffing or rity professional, who may provide through local merchant associa- “They want something rock one location, however. know-how of Fortune 500 compa- similar services to multiple tions, the Chamber of Commerce, solid that’s going to provide the It may not be necessary for the nies is a daunting task,” Gartner companies. or even judicious searching online. protection they need. They don’t security specialist/IT person to security analyst Eric Ahlm told Merchant services companies, For midsize companies, doing want to have to fuss with it,” said have a company office. IT security USA Today. the first line of defense for many security in-house with purchased Brian Burch, vice president of professionals using cloud-based Small to midsize businesses small companies, often offer a data software is an option. small-business marketing at security services can work from Symantec. virtually anywhere. Health Insurance the employer) and a subsidy (from Fla. Norton’s Small Business prod- Whatever security a company the government) and coverage will “Small groups have to pick uct starts at $100 a year with a li- decides on, software can never be CONTINUED FROM PAGE 3 be better than what you were from two or three plans, whereas cense that covers up to five devic- fully protective. accountants recommend owners going to get with the group plan,” employees can go to the individual es, and the ability to add more for Staff training is crucial, notes talk to a tax professional to see says Ashley Hunter, owner of HM market, exercise more flexibility $20 each. one expert. what their options are. Risk Group, an insurance broker- and have more autonomy,” says When a business gets about 25 “We can make a piece of secu- Some companies are bringing age based in Austin, Texas. O’Donnell. employees, many begin to switch rity software that says, ‘Warning! in insurance brokers or benefits Workers can do better on their He estimates 10 percent of his to the more powerful Symantec Don’t click this button!’ consultants to help workers find own because they have more op- company’s small business clients Endpoint Protection Small Busi- “But, if your employees don’t new insurance. tions than businesses, reports John have ended group coverage and ness Edition, “which is more know that it’s important not to “We explained to them, you O’Donnell, president of Insurance given their workers money to pur- meant for an IT professional with- click the button, your investment probably are going to come out Consultants of Central Florida, a chase insurance or are seriously in the company,” said Burch. “It in that security software isn’t ahead. You will get a stipend (from broker based in suburban Orlando, considering it. scales to hundreds of employees.” going to pay off.”

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transitsales.com | sblbus.com 800-BUS-SALE 16 November 15, 2014 INDUSTRY NEWS Bus & Motorcoach News Silverado Stages, Silver State Trailways to merge SAN LUIS OBISPO, Calif. — of Silver State) and his motorcoach great benefit and reward for our newest rankings in January. using their public assets to com- Two of California’s best-known company have agreed to join Sil- loyal employees. The combined Silverado Stages provides pete unfairly with private opera- motorcoach companies, Silverado verado and help grow our com- companies provide breadth and transportation across the West from tors. (See Feb. 1, 2009 Bus & Mo- Stages and Silver State Trailways/ bined operations in the western re- depth in the California and Nevada terminals in Sacramento, San Luis torcoach News.) Coach, are merging. gion of the United States,” said Jim markets, allowing us to better serve Obispo, Bakersfield, Santa Barba- In early 2009, the Federal Combining Silverado, which Galusha, CEO of Silverado. all of our clients,” Fiorini added. ra, Orange County, and Pomona, Transit Administration ruled, in a already is the largest motorcoach “Our plans are to consolidate Silver State Coach/Trailways Calif., and Las Vegas. complaint brought by Silverado, operator in California, and Silver operations where possible, take was founded 28 years ago. It oper- Services include charters, tours, that public transit agencies are not State will produce a company with advantage of best practices and ef- ates a fleet of 40 motorcoaches scheduled fixed-route service, com- allowed to perform a charter job upwards of 160 vehicles, includ- ficiencies, and to extend Silver­ from terminals in Placentia, Calif., muter and campus shuttles, and con- based strictly on the fact that a pri- ing more than 120 motorcoaches. ado’s proven operational model.” where it is headquartered, and Las vention and event services aboard vate carrier could not provide all That would be enough to make “I’m excited about the oppor- Vegas, Nev. motorcoaches, shuttles and vans. of the specialized equipment re- the merged operation the largest tunity and challenges ahead,” said Silverado Stages, is 27 years Silver State’s services include quested by the customer. private operator of charter vehi- Fiorini, who is the current chair- old, and has grown into the 19th charters, casinos runs and school The ruling reinforced the no- cles in California, moving it ahead man of the Trailways Transporta- largest motorcoach company in the pupil activity buses. tion that a bus, is a bus, is a bus. of Bauer’s Intelligent Transporta- tion System. U.S., according to Metro magazine. Five years ago, Silverado Stag- And that transit agencies cannot tion of San Francisco. “Silverado is an employee- The addition of Silver State likely es achieved a major victory in the issue charter notices that specify “We are extremely pleased that owned company — the ESOP (em- will move Silverado up three or industry’s decades-long effort to the type of bus or buses that will be Tony Fiorini (president and owner ployee stock ownership plan) is a four notches when Metro issues its keep public transit agencies from needed. Electronic logs now required to prepare paper volved,” Davis said, “but they still Not for marginal types (electronic logging device) func- RODS (records of duty status), take less than two minutes. When So, electronic logging devices tions into other electronic plat- CONTINUED FROM PAGE 1 subject to a limited exception for he signs off duty that prompts him are meant for safety-conscious forms, such as a (fleet manage- driving factors as speeding and drivers who are rarely required to to do his post-trip inspection re- carriers but are “not a good idea if ment system), already used on heavy braking. keep RODS,” the rulemaking doc- port. He hits ‘no defects’ or adds a you live on the edge of what is (commercial motor vehicles).” Despite their many capabili- ument states. defect and signs off.” compliant and what is not,” said The other available functions ties, a relatively small number of “If a driver is required to use an “It probably saves the drivers industry safety consultant Mat- make the electronic logging devic- motorcoach operators are thought ELD, the motor carrier must not 10 or 15 minutes a day,” said Pol- thew Daecher, president of Dae- es a better buy, said Daecher. to be deploying the devices ahead require or allow the driver to oper- zien, whose 47-coach charter op- cher Consulting Group in Camp “The additional monitoring of the mandate. ate a (commercial motor vehicle) eration uses logging equipment Hill, Pa. benefits can pertain to vehicle-me- “From our perspective it has in interstate commerce without from Saucon Technologies. Otherwise, he said, “there are chanical and driver safety moni- been very positive,” said Jeff using the device.” He initially installed electronic several positives to electronic log toring. There are additional regula- Davis, safety director at Premier recording devices in 2004, but did adoption. There are the obvious tory benefits, such as fuel tax Transportation in Knoxville, Tenn. The technology not keep them for long. “That was paperwork-saving and -chasing logging and calculation. If GPS “It has cut down on the little mis- The FMCSA proposal esti- older technology,” he said. (See benefits for the driver and carrier. (global positioning system) is in- takes found in audits. It enables us mates an average annual cost of June 15, 2004, Bus & Motorcoach This can extend beyond the logs corporated, there is less reliance to handle post-trip inspections $495 per vehicle for an electronic News.) themselves if vehicle inspection necessary on supporting docu- electronically and that has been logging device and operating ser- The first-generation devices reports are included.” mentation for logs.” nice.” vices. It defines the ELD as “a re- were bulky and required drivers to Daecher acknowledged and “I would advise people to go As for Premier’s 70 drivers, cording-only technology, used to download information from the understands the widespread resis- into electronic-log and -tracking “Some were not excited at first. track the time a (commercial electronic logs and take it to the of- tance to the devices and the com- software together,” Polzien said. There was a steep learning curve motor vehicle) is operating. fice where it was transferred to a ing federal mandate. “There are so many benefits to for some of the older guys. Once “An ELD is integrally connect- computer. It was time consuming “It’s changing the way carriers being able to track idle time and that part was overcome, they ed to the CMV’s engine, uses loca- and not the least bit convenient. have monitored hours of service miles per gallon by driver and ve- thought it was easy. I think they all tion information, and is tamper re- The efficiencies of the new de- for decades. Sometimes it is hard hicle. We have really cut our idle have come around,” said Davis. sistant. An ELD automatically vices are significant and every- to convince an older-generation time way back. We aggressively go Horizon Coach Lines actually tracks CMV movement, but allows where apparent, particularly in the owner that there is a new way of after incidents where we feel driv- did lose a driver during the intro- for annotations by both the driver Red Carpet office. “There are cost doing things. It will mean over- ers have excessive idle time. With duction of electronic logging de- and the motor carrier’s agent to ex- savings in the time we spend try- coming some of the driver-force fuel at the price it is these days, it vices in 2012, said Jack Wingerter, plain or correct records.” ing to collect all the logs, get them reluctance to learn and work with is a significant savings.” safety manager for the carrier’s A driver beginning a duty stint in the right order, review them for technology.” By monitoring fuel mileage by North Carolina operations. “He is required to complete three pri- mistakes. There also is a safety However, Daecher said, “It will driver and vehicle, the data also en- said he had never worked with a mary steps to start the GPS Insight thing in that it (ELD) makes it dif- become clear to drivers in no time ables Red Carpet to identify train- computer and he wasn’t going to.” device fitted to Premier Transpor- ficult to fudge on your hours,” he that electronic systems ultimately ing needs and maintenance issues. On the other hand, as Horizon tation coaches and on-line since said. mean less work and hassle for “The system also knows what was easing into electronic logging, Aug. 1, Davis said. Horizon Coach Lines decided them.” the speed limit is on the various “some of the older drivers were “He needs to sign himself in. to adopt ISE Fleet Services elec- highways and it flags a driver for ex- eager to use it. One of the senior He needs to review the post-trip tronic logging, beginning in 2012, Added gadgets ceeding the posted limit. That helps drivers asked to use it and has been report of the guy who had the bus partly due to the amount of time Electronic logging devices keep the drivers from getting speed- on the electronic logs ever since,” before him, and enter his charter needed to deal with driver log is- now on the market package the ing tickets. We really have no toler- Wingerter said. number for that trip. It takes about sues during an audit, Wingerter basic logging of driver hours with ance on speed limits,” Polzien said. “There were concerns when we two minutes.” said. other services that exceed the pro- Davis said the electronic log- made announcements — that some During the driving day “there “We decided it would be a posed federal mandate. ging devices at Premier Transpor- people didn’t think they would un- is not a lot to worry about,” Davis good time to make that move so we “A fleet management system tation assist the maintenance shop derstand it. The drivers have em- said. “He can get out of his seat if did not have to spend so much time (FMS) is an asset-tracking and in planning. “It helps the mainte- braced it and make it clear they the bus is parked. After five min- on our logs on our future audits.” business-optimization solution nance staff predict when the bus is don’t ever want to go back to paper utes if the bus is not moving, the Horizon also has found the de- which may also accomplish the coming back so they can schedule logs,” he added. ELD switches to ‘on duty-not driv- vices are beneficial in other com- (electronic logging device) func- the service it needs.” ing’ status. He pushes one button pliance matters. tionality,” the FMCSA proposal At Horizon Coach Lines, “our What’s ahead to start a rest break, then it asks for “The enforcement folks are states. maintenance shop has access to “(The) FMCSA proposes that confirmation of that. At the end of very satisfied with these logs “These capabilities would not the system and the authority to go interstate motor carriers install a rest break he presses a button.” being tamper-proof so there is a lot be required by this regulation. in and look at the DVIRs (driver ELDs in all commercial motor ve- At the end of the shift the re- less time spent when our drivers FMCSA emphasizes that it does vehicle inspection reports). From hicles operated by drivers who are quirements are “slightly more in- do have a destination inspection.” not prohibit the integration of CONTINUED ON PAGE 17 c Bus & Motorcoach News INDUSTRY NEWS November 15, 2014 17 Study of e-logs questioned, said to ignore small carriers GRAIN VALLEY, Mo — The lacks relevant data to prove the ward larger carriers, prompting the supposedly would be prevented Fewer than 12,000 of the Owner-Operator Independent electronic devices lower crash rates Owner-Operator Independent with electronic logging devices,” 83,000 crashes between 2008 and Drivers Association has taken aim and reduce preventable crashes. Drivers Association to say the said Owner-Operator Independent 2012 were recordable by the U.S. at a study released by the Federal The FMCSA said in its study study “in no way” represents Drivers Association Executive Vice Department of Transportation, Motor Carrier Safety Administra- electronic logging devices could small- or midsize carriers, citing President Todd Spencer. says FMCSA in its study, and 987 tion that claims there are “clear lower crash rates by 11.7 percent FMCSA’s own figures that show Additionally, the OOIDA of those were fatigue related. safety benefit(s)” to using elec- and lower preventable crash rates 97 percent of all commercial fleets points out the report’s researchers OOIDA’s response calls the tronic logging devices. by 5.1 percent. have 20 vehicles or fewer and 90 admit that there wasn’t enough number of crashes for the study’s While asserting electronic logs The agency’s conclusion was percent have six vehicles or fewer. data to find any safety benefits sample “a scary concept,” and says have a beneficial impact on com- based on the premise that logging The Owner-Operator Indepen- when comparing USDOT-record- that “if true, these carriers do not mercial vehicle safety, the agency devices would boost hours-of-ser- dent Drivers Association also says able or fatigue-related crashes. need ELDs, they need to be re- acknowledges its study is “skewed” vice compliance, which would re- the FMCSA study may have Small sample sizes limited the moved from the road all together.” toward large, for-hire carriers. duce fatigue and therefore fatigue- errors. researches’ ability to find a signif- Still, all but one of the partici- The Owner-Operator Indepen- related crashes. “The study’s conclusion is icant difference between trucks pating carriers had low Unsafe dent Drivers Association, on the The agency did note in its flawed because it included all other with logging devices and those Driving BASIC scores, though two other hand, contends the study study that its data was slanted to- types of crashes except those that without, the FMCSA report notes. did show a high Crash Indictor, ac- cording the 2011 CSA data pre- Electronic logs will be subject to the electronic the FMCSA. “I think it would be good for sented in the study. logging device rule, according to “Their motivation is to organiza- companies of all sizes. It is a safety “The possible changes that CONTINUED FROM PAGE 16 the FMCSA. tionally implement processes that issue. It is an efficiency issue. It is a hold the most promise in improv- their computer in the shop they can “The motorcoach industry is a increase the robustness of their com- win-win. It is clear that it is going to ing highway safety are things like identify the repairs that need to be much smaller industry than truck- pliance process. Using electronic be mandated at some point, so why driver training, better working en- made and sign off on those re- ing overall, but I do see strong in- logging, a lot of information is gen- not get ahead of the curve?” vironments, support systems and pairs,” said Wingerter, who over- terest in electronic logs from mo- erated automatically and it is highly “I would not advise a carrier safe parking,” says Spencer. sees four Horizon shops with torcoach operators,” said Mark accurate and there is a real produc- against adoption,” Daecher said. “I “We’d like to see well-trained about 145 buses and 250 drivers in Schumacher, vice president of tivity gain,” Schumacher said. would tell a carrier that if they’re drivers put into trucks instead of North Carolina. business development at ISE Fleet going to go with a vendor, make unproven technology. It is the hall- Services of Coralville, Iowa. More advice sure the agreement stipulates that mark of a bureaucracy to embrace Motorcoach market “They are definitely looking While Polzien has a substantial the hardware and software will meet billion-dollar mandates in the Motorcoach operators, classi- at electronic logging devices, es- fleet that runs charters coast to all applicable standards, once they name of safety while all but ignor- fied as “for-hire passenger” opera- pecially with the precious cargo coast from Oklahoma, he thinks the are finalized, at no additional cost to ing the absence of even basic driv- tions, account for fewer than 2 per- they’re hauling and the level of at- electronic-logging-device era will the customer and with no additional er training for new drivers entering cent of the 532,000 carriers that tention they are receiving from benefit smaller operations, too. extension of any contract.” the industry.” THE EYRE FAMILY Martz Group Coaches for Sale

Buses for Sale 1994 MCI – 102D3 – 47 Passenger (2) 1998 Prevost H3-41 w/WC Lift (2) 1998 MCI 102D3 – 47 Passenger MCI-Ds • MCI-Es • Prevost Le Mirage H345s 2000 Prevost H3-45 w/WC Lift (2) Ranges in years 1995-2000 from $20-$80k 2001 MCI J Model w/WC Lift (2) 2003 MCI J Model (new trans) Contact Craig Smith: 570-821-3886 [email protected]

Contact Brad Eyre 410.442.1330 x 3210 See all listings: www.martzgroup.com www.eyre.com/forsale 18 November 15, 2014 INDUSTRY NEWS Bus & Motorcoach News Montreal MCI sales/service center gets expanded location MONTREAL — Motor Coach hours, seven days a week. The Industries has moved its Montreal phone number remains unchanged: sales and service center to an ex- (800) 663-3328. The email address panded location at 3500 St. Pat- is [email protected]. rick St. (3500 Rue Saint-Patrick). MCI said it plans to retain and The 30-percent larger facility add to its Montreal staff to accom- has allowed MCI to expand its modate growth. parts, service and repair capacity “We are very pleased to offer in Quebec. an even higher level of OEM The site also provides space coach service to the Montreal for new MCI and Setra coaches, area,” said Patrick McGuire, vice used coaches, and a base for the president of MCI service centers. MCI Mobile Maintenance unit. fueling; complete repair and retro- state-of-the-art equipment and di- Wi-Fi and refreshments. The MCI Mobile Maintenance The MCI facility is situated fit; quick-service oil change sta- agnostics. Renovations to the site The downtown location is eas- unit based at the Montreal center where the former Centre d’Autocar tion, lavatory services, and parts will continue over several months. ily accessible from the Jean-­ will travel to area customers Mon- D’Amérique Du Nord (Motor pick-up counter. Among other things, MCI is Lesage expressway, says MCI. day through Friday, providing a Coach Center of North America) MCI said it is making a signif- adding a paint booth; an indoor Marc-Andre Ouellet is the ser- range of repair and diagnostic ser- operated. icant investment in the former bus bus wash station, and a drivers’ vice manager of the Montreal Ser- vices, as well as provide emergen- The location includes on-site repair facility, including additional area with lounge chairs, television, vice Center, which is open 24 cy roadside assistance. Auto sales prime loans, 72- and 84-month and no one — not even Jonas — is Meanwhile, finance terms that the juicy discounts. In 2007, spend- terms, and increased sales to rental predicting a repeat of billion-dol- are 72 months or longer now com- ing on incentives was just under 9 CONTINUED FROM PAGE 1 car companies to pad their sales. lar losses and cars piling up on prise 32 percent of all auto loans, percent of the average sales price percentage. “We have no desire to go there,” dealer lots. Automakers have cut up from 23 percent in 2008, ac- for a vehicle. That dropped to Annual auto sales in the United said Mendel, whose company’s costs and are better positioned to cording to LMC Automotive. around 8 percent in 2012 and 2013, States this year should top 16 mil- sales through July have fallen 1.3 handle a downturn than they were Dealers can offer longer loans but it is back up to 8.4 percent and lion for the first time in seven percent, trailing the industry. in 2008 and 2009. on expensive cars, making the pay- likely will rise toward 9 percent years. But the pent-up consumer Some on Wall Street see a price Still, the easier credit brings ments seem reasonable. But those later in the year, he said. demand that has driven sales is to pay for the return to riskier tactics. back not-so-fond memories. loans are loaded with interest early Based on an average sales price ebbing. Sales are predicted to “It could be a disaster later on,” In fact, credit monitoring firm on, so it takes a long time for buy- of just over $32,000, the additional grow 5.5 percent this year, the says Morgan Stanley analyst Adam Experian said there was a 12.7 per- ers to pay principal and build eq- discounts would cost the industry slowest pace since the financial Jonas. “We’re clearly robbing cent year-over-year increase dur- uity for a trade-in, said Greg Mc- almost $5.2 billion per year. crisis that struck at the end of the Peter to pay Paul.” ing the second quarter of this year Bride, chief financial officer at “This was the trap that got ev- previous decade. He sees sales growing to an an- in “deep subprime” auto loans, Bankrate.com. eryone in trouble before the reces- The big discounts and other nual rate of 18 million in 2017, which are made to buyers with Plus, 26 percent of deals are sion,” Brauer said. steps eventually should help push then sinking to 14 million a year credit scores lower than 550. now leases, up from 18 percent in Bankrate’s McBride said lend- sales above 17 million, most ex- later. That will mean factory clos- And loans to “subprime” buy- 2008, according to LMC. For those ers are willing to make larger and perts say. But Honda Motor Co.’s ings, restructurings and thousands ers or those with credit scores lower who buy, the average discount on a longer loans because cars are easy U.S. sales chief, John Mendel, has of job cuts just for companies to than 620, rose 5.3 percent, the com- new car through July was $2,702. to repossess. “You miss more than scolded his competitors for using break even. pany said. Combined, both are just Karl Brauer, senior analyst for one payment, and it won’t be in the “short-term” tactics such as sub- Not all forecasts are that dire over 12 percent of all auto loans. Kelley Blue Book, sees trouble in driveway in the morning,” he said. Insurance Another of the major criticisms by industry executives of the pro- CONTINUED FROM PAGE 1 posal is that it is not needed be- $1 billion policy covers rail catastrophes They say federal regulators are cause the current minimum level NEW YORK CITY — AIG now and there’s demand for more, need,” Johnston told a reporter. strongly biased in favor of larger of $5 million has rarely been ex- (American International Group according to Johnston. “This is an entirely new bus companies, which they con- ceeded by catastrophic claims Inc.), the largest commercial in- The policy would pay for prop- amount of capacity being sider to be safer than smaller since it was implemented 30 years surer in the U.S. and Canada, has erty losses and bodily damage to delivered.” operators. ago. introduced a policy to assist rail- third parties, a risk that’s mount- Railroads previously had to “Raising the minimum liability At the time the current mini- roads in handling losses from cat- ing as railroads ship more hazard- obtain a similar amount of insur- requirement would create one mum was adopted, it was consid- astrophic accidents — as more ous materials. ance in pieces from multiple more barrier to entry,” said Ken ered astronomically high. crude oil is shipped by trains. The amount of oil hauled by firms. AIG participated in those Presley, vice president of the Unit- O’Shea said Lancer, which has The insurer is offering $1 bil- trains in the U.S. rose more than groups and typically offered a ed Motorcoach Association and a a 30 percent share of the bus insur- lion in coverage to take effect after 40-fold to 407,761 carloads in maximum of about $100 million former bus industry insurance ex- ance market, has settled only 142 a railroad has already incurred 2013, from five years earlier, the in coverage, Johnston said. ecutive. “Anybody advocating for claims in excess of $2 million $1.5 billion in costs resulting from Association of American Rail- A derailment last year in Lac- this must know it will slow down since it started in business in 28 an accident such as a derailment, roads reports. Megantic, Quebec, caused an ex- new entries and harm small-fleet years ago, an average of five per said Russ Johnston, who leads the “When we look at the in- plosion that killed 47 people and operators.” year. He said that only 12 of those New York-based insurer’s casualty creased use of rail for a number of incinerated the town’s center. Presley said that in addition to settlements reached the mandatory operation in the Americas. different commodities over the Montreal, Maine & Atlantic Rail- making it more difficult for startup minimum of $5 million. The biggest railroads typically last few years and into the future, way Ltd. filed for bankruptcy last operators to obtain or afford insur- Earlier this year, Timothy buy about $1 billion of coverage our view is that there’s an unmet year as a result of the disaster. ance coverage, the increased mini- Delany, senior executive vice pres- mum also would stifle diversifica- ident at Lancer, said that out of either because they have extensive Critics of the proposed in- This so-called limit pull not tion in the bus industry. about 250,000 claims filed over assets to protect or because they crease also contend that should the only would result in larger settle- That means that more compa- the years with Lancer, only two contract with clients — such as ca- liability minimum be raised the ments in major accidents, it also nies would choose to focus exclu- were settled for more that the man- sinos and schools — that require monetary awards going to people would affect the smaller claims sively on charter service because it datory minimum. them to carry more insurance. involved in bus accidents would that are much more common in the is less risky than trying to offer A small percentage of motor- O’Shea said that during the skyrocket because lawyers repre- industry, said O’Shea. scheduled service or commuter coach operators already carry lia- past three years, fewer than 4 per- senting them would have a higher “We’re worried about the routes, both of which take a long bility insurance above the $5 mil- cent of the operators it insured ex- starting point when they file $50,000 claims going to $80,000,” time to establish. lion minimum, but they do so ceeded the minimum requirement. claims against a carrier. CONTINUED ON PAGE 21 c Heavy-duty reliability

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9283-2_FCCC_XB-S_BusMotoNews.indd 1 6/5/14 12:22 PM 20 November 15, 2014 INDUSTRY NEWS Bus & Motorcoach News Greyhound Centennial Tour wraps up next month in L.A. DALLAS — Greyhound Lines’ When the fair closed late last “Centennial Tour,” marking its month, the tours again separated 100th anniversary in business, com- and went back on the road for the pletes its cross-country run next final two months of the year. month in Los Angeles. The south tour stops at the Phoe- The 37-city tour, featuring vin- nix Zoo on Dec. 6 and at the Las tage Greyhound buses and two Vegas Premium Outlets on Dec. 13. coaches that have been converted The north tour stops Nov. 15 at into traveling museums, began in late Northgate Mall in Seattle; Dec. 6 at spring in Foxborough, Mass. (See Woodburn Premium Outlets in Port- July 1 Bus & Motorcoach News). land, Ore.; Dec. 13 at Six Flags Dis- During the summer there were covery Kingdom in San Francisco, two separate tour caravans, each with and Dec. 20/21 at Six Flags Magic a handful of vintage Greyhounds and Mountain in Valencia, Calif., the Thousands visited Greyhound’s Centennial Tour during a 24-day stop at the Texas State Fair in September and October. one of the mobile museums. final stop. Inside the slickly designed and Information on hours of opera- graphically arresting museum buses tion at the various stops is available visitors found a timeline of histori- at www.greyhound.com/en/Centen- cal events, touch-screen displays, nialTour.aspx. driver uniforms from different eras, “This tour is a once-in-a-life- and other memorabilia. time opportunity for much of the In late September, the two tours public to see Greyhound’s history combined for a 24-day stay at the brought straight to them,” said Kim Texas State Fair in Dallas. Plaskett, Greyhound director of A huge, aluminum-framed tent marketing. housed six vintage coaches, a mo- “Not only are we showcasing bile museum, a new Prevost Grey- our company’s rich heritage, but the hound in the latest company livery, a exhibit also features a modern flair, Greyhound store, and a 1914 Hup- echoing the efforts Greyhound has mobile, the first vehicle used by been making to transform intercity Greyhound founder Carl Eric Wick- bus travel today.” man to transport miners from Hib- It is worth catching — even if bing to Alice, Minn. you’ve never ridden a Hound.

Led by a 1954 Scenicruiser, Greyhound also had buses from 1937, ’47, ’48, ’68 and ’84 on display at its Texas stop.

The mobile museums display timelines, uniforms, memorabilia and photos.

One of the vintage coaches on display was this pristine 1937 Yellow Coach.

Photos by Fred Rayman and Dave Millhouser The first Greyhound was a 1914 Hupmobile that operated in Minnesota. Bus & Motorcoach News INDUSTRY NEWS November 15, 2014 21

Insurance

CONTINUED FROM PAGE 1 he said. “Those are the main claims we see. The biggest impact of limit pull will be that it will pull up all our claims.” Lancer’s estimate that a $10 million insurance minimum would cause a 60 percent increase in pre- miums is based on the expected increase in settlement amounts re- sulting from the higher minimum. O’Shea said if Lancer’s experi- ence is projected across the entire motorcoach industry, the total amount operators pay in insurance premiums would add another $150 million to the $250 million motor- coach operators currently pay each year to insure their fleets. The $400 million total would roughly equate to an average insur- ance premium of $10,200 for each of the 39,200 motorcoaches now on the nation’s highways, up from the current average of about $6,300. Opponents of increasing the insurance minimum also dispute claims that it would make the ground passenger transportation industry safer, presumably by forc- ing insurance companies to be more diligent in making sure their clients are operating safely and meeting all federal regulations, and to be more careful about insur- ing riskier operators. The federal focus on safety can be traced, in part, to the fact that in today’s frenzied news and social media climate, more attention is paid to bus accidents — even minor ones — that used to only be publicized in local media where the accidents occurred. “Now, when a bus flips, it’s na- tional news,” said O’Shea. “With the 24-hour news cycle awareness is higher and people start to scream. The government takes no- tice and there is an increase in reg- ulatory eyes.” However, he added, “there has never been a scientific study con- ducted to show how an increased in- surance minimum would affect safe- ty. We feel it is a snap decision.” The timing of the FMCSA pro- posal to increase the insurance minimum is unclear. It was projected to clear the White House Office of Manage- ment and Budget and be published in the Federal Register last month as an Advanced Notice of Pro- posed Rulemaking, which likely would have shed more light on the proposal’s details. The schedule lapsed, however. Hearings on the proposal are being conducted by the FMCSA Motor Carrier Safety Advisory Committee. 22 November 15, 2014 INDUSTRY NEWS Bus & Motorcoach News Fuel-efficient tires OK in winter People OTTAWA, Ontario — As “low primarily designed to improve ve- As the emissions regulations FAIRFAX, rolling resistance tires’ have be- hicle fuel efficiency. They are have been developed, some com- Va. — The come more commonplace, some made of advanced materials and mercial vehicle operators and Trailways users have expressed concern the have treads, dimensions and groups have wondered and wor- Transportation tires may have reduced traction weights that help to minimize the ried that low rolling resistance System has an- performance in winter conditions, energy lost as the tires roll across tires may have reduced traction nounced the ap- Chuck Gunnels Phil Rabe particularly when mounted on the road surface. performance during winter storms. pointment of large commercial vehicles. With heavy-duty vehicle and The Transport Canada study Terri Marin as While there has yet to be ex- engine greenhouse gas emission evaluated several brands of low senior vice pres- Terri Marin tensive, real-world research on the regulations slated for continued rolling resistance tires to assess ident of market- tires’ performance during snowy tightening during this decade, it’s their performance in packed-snow ing and communications. weather, Transport Canada has expected that commercial vehicle winter conditions. The testing was Trailways president and CEO, conducted a study on the tires win- manufacturers and importers will done on big rigs. Gale Ellsworth, said Marin “will ter safety and environmental expand their use of fuel savings The study, conducted by the apply her extensive strategic mar- performance. technologies, including low rolling National Research Council, dem- keting and sales experience, along Low rolling resistance tires are resistance tires. onstrated that the current genera- with her in-depth knowledge of Brian Pinckney Claude Payne tion of low rolling resistance tires the motorcoach industry, to fur- “We have been looking to offers a similar level of snow trac- ther the network’s footprint, Chuck to lead this business as it Excellent Condition–none nicer! tion performance as conventional broaden its group charter- and continues to grow and develop. Cummins • B500 • 58 pax w/lav tires, while reducing fuel con- tour-consumer base and help in- He is a great fit for this position 170K TCM Michelin Tires sumption and emissions. crease stockholder value in the and we are confident he will excel Alcoa Rims • Cordless Mics NEW Tires used in the study were Trailways brand.” in this role.” CD/DVD • Lots more options LOWER chosen from the U.S. Environmen- On a day-to-day basis, Marin Gunnels has been with Arrow Partial Financing O.A.C. PRICE! tal Protection Agency SmartWay will be responsible for overseeing for 25 years. $305,000 Program approved list, a widely-ac- marketing activities, including the Separately, Arrow announced Trade for MCI D or DL3 Considered • More available cepted designation for low rolling development, implementation and that Phil Rabe has joined Arrow Call / Email today for photos and more info! resistance tires in North America. management of all strategic and Nationwide Ground Logistics. [email protected] / 808.832.6261 operational activities, such as Rabe formerly was charter ac- Academy group sales, advertising, stock- count executive at Champion holder services and network ex- Coach. REPOS FOR SALE CONTINUED FROM PAGE 3 pansion, with an emphasis on ac- “We are thrilled to add Phil…,” •“Bank Repos” across the US • Priced to Sell MCIZ. tivities aimed at brand awareness. said Busskohl. “Phil (brings) a • Variety of Makes & Models Academy said the Marmurst- Marin joins Trailways from wealth of knowledge and under- eins wanted to get out of the motor Consolidated Safety Services and standing to our business….” 1-877-737-2221 x30716 carrier business. its subsidiary, the Transportation Rabe has been given the title Safety Exchange, where she mar- of national enterprise sales man- www.Bus-Buys.com — View “Repo Inventory” An application was filed by Academy with the Surface Trans- keted participation in TSX’s safety ager and is based in the Green- portation Board in late July, seek- certification program to motor car- ville, S.C., area. ing approval to acquire the proper- riers throughout the U.S. WINTER GARDEN, Fla. — ties of Go Bus and MCIZ. “We are excited to welcome ABC Companies has announced Academy falls under the purview such an accomplished marketing the promotion of Brian Pinckney to of the board because of its size. professional to our staff; Terri’s sales manager of ABC’s Southeast Roughly a month later, the Sur- marketing expertise and motor- Region and the return of Claude coach industry experience will Payne to the ABC sales team. face Transportation Board an- serve our organization well as she Pinckney and Payne have a Be sure and nounced that the information pro- leads Brand Trailways into new combined 40-plus years of sales vided by Academy concerning the realms of accomplishment…,” and customer service experience deal “was not sufficiently com- update said Ellsworth. in motorcoach operations through- plete to provide the required notice “Trailways is a highly respect- out North America. to the board and to the public as to your mailing ed transportation brand that the In his new role, Pinckney’s key the nature and effect of the pro- traveling public has looked to responsibilities include day-to- posed transaction.” since its beginnings in 1936,” said day management of sales opera- information The board directed Academy Marin. tions, inventory management and to supplement its application, “My own first bus trip as a optimization of customer relation- with us so which it did a few days later. child was on a Trailways coach, ships in the Southeast. Finally, in late September, the driven by my uncle,” she said. “So, A 22-year industry veteran, you don’t board approved the transaction, like so many Americans, Trailways Payne was drawn out of semi­ subject to the filing of any oppos- is part of my heritage and I am ex- retirement to rejoin ABC as senior miss a ing comments. The deadline for cited to be part of its future.” account manager. comments was Nov. 10. OMAHA, Neb. — Arrow He joins Ryhan Cornell, ac- The Go Bus/MCIZ acquisi- Stage Lines has named its long- count manager, to provide team single issue! tions are the second major pur- time vice president of sales, Chuck support to customers throughout chases by Academy Bus this year. Gunnels, managing director of the Southeast where Payne previ- In January, it acquired most of Arrow Nationwide Ground Lo- ously worked both as an account the Florida operations of Horizon gistics, a new passenger transpor- executive and sales manager. Coach Lines, including Cabana tation consulting and solutions “Both Brian and Claude are Call 866-930-8421 or email changes to: Coaches, plus terminals in Jack- venture (see Sept. 15 Bus & Mo- among the most respected profes- sonville, West Palm Beach and torcoach News). sionals in our industry and have [email protected] Miami/Fort Lauderdale. (See Feb. “We are seeing promising been integral to fostering valuable 1 Bus & Motorcoach News.) growth with our newest brand, relationships between ABC and To place a Classified Ad, Florida Academy Bus has a ANGL,” said Arrow Stage Lines operators over the decades,” said staff of 300, operating a fleet of Chief Operating Officer Luke Roman Cornell, ABC senior vice call 866-930-8426 200 vehicles in the Sunshine State. Busskohl. president. WE HELP YOU RUN YOUR BUSINESS FROM THE PALM OF YOUR HAND.

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