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Bus & Motorcoach News November 15, 2007 WHAT’S GOING ON IN THE BUS INDUSTRY Federal officials want industry to plan for pandemic WASHINGTON — Federal possibility of a prolonged and dev- significant risk to the United States If a severe pandemic were to hit of the economy is potentially sig- homeland security officials, plan- astating pandemic event may find and the world. the U.S., given today’s highly mo- nificant, officials contend. ning for a possible catastrophic themselves without the staff, equip- “Only its timing, severity and bile population, outbreaks could “Any disruption to these key pandemic that could slow the na- ment or supplies necessary to con- exact strain remain uncertain. Inter- occur almost simultaneously through- highway transportation services tion’s economy to a crawl, includ- tinue serving their customers or to national, federal, state, local and out the country, according to the and infrastructure may cause sig- ing the entire transportation sector, provide emergency assistance, fed- tribal government agencies are dili- U.S. Department of Homeland nificant local, regional and even have put together a series of guide- eral officials warn. gently planning for the public Security. national challenges potentially put- lines for the motorcoach and truck- President Bush has urged pri- health response to this potential Whether transporting passen- ting delivery of critical food, fuel ing industries. vate-sector companies to act, not- pandemic,” says Bush, urging pri- gers by bus, taxi or transit vehicles, and medical supplies, as well as Passenger transportation com- ing that “public health experts warn vate companies to also plan for or transporting goods by truck, the emergency response equipment, panies that fail to prepare for the that pandemic influenza poses a such a disaster. impact on the transportation sector CONTINUED ON PAGE 18 þ Rochester agency Ga. operators wins court delay plan to battle for school service bus rental firm ROCHESTER, N.Y. — The ATLANTA — Motorcoach op- Rochester transit system has won erators in Georgia, many of whom have battle scars from numerous back the right — at least temporar- charter service battles with public ily — to continue providing daily transit agencies, are gearing up for bus transportation for about 9,000 a skirmish with a new opponent — public school students, despite a a bus rental outfit. ruling by federal transit regulators The Georgia Motorcoach Oper- that the service is illegal. ators Association said it plans to U.S. District Judge David G. propose legislation that would re- Larimer agreed to extend until Feb. quire companies that rent motor- 15 a temporary injunction that coaches, like Hertz rents cars, to do blocked the Federal Transit Admin- more to make sure customers are istration from requiring the aware of their liability responsibili- Rochester-Genesee Regional Fleet Addition. Museum of Bus Transporta- 3701 given to the museum by Spike Michaud, ties and possible safety issues. Transportation Authority from halt- tion president Tom Collins, third from left, joins left, and Jim Michaud, right. Jim Michaud’s six- “We feel like their customers ing its school bus service. three generations of the Michaud family for the year-old daughter Amanda cut the ribbon during are not being made fully aware of The injunction, initially issued dedication of “Little Spike,” a restored GM PD ceremonies last month. See story Page 6. what responsibilities they have in July, was to have expired Nov. 2, when they rent a coach,” said at which time RGRTA would have Jimmy Cantrell, association presi- had to end its school bus service 3rd-quarter coach sales drop 15% dent and owner of Daniel’s Chart- ers in Gainsville, Ga. and it could have been taken over The slowdown in sales of new the slowest sales period of the year reluctance to be one of the first kids While the “full-disclosure” leg- by a private carrier. motorcoaches during the second for new over-the-road buses in on the block with one of the updat- islation would impact all bus rental Larimer, who indicated more quarter became a full-fledged back- North America, but this year the ed engines. and leasing companies, its actual time is needed to sort out the legal slide during this year’s third quar- normal quarterly dip became a dou- The third-quarter slide followed target is AutoMax Rent-a-Car, challenges to RGRTA operating the ter, new figures released by Na- ble-digit decline. 11 consecutive, year-over-year quar- which rents 45- and 33-seat coach- bus service and the FTA ordering it tional Bus Trader magazine show. The drop is being blamed pri- terly increases that began in the fi- es, with or without drivers, to busi- be halted, said he would consider A total of 457 new coaches were marily on a significant number of nal quarter of 2004. The sales funk nesses, churches, civic organiza- extending the injunction further if sold during July, August and Sep- tour and charter bus operators balk- that ended in ’04 had begun in 1999. tions, social groups, families and tember, the smallest quarterly total ing at buying ’07-model coaches Larry Plachno, editor of Na- necessary. others from outlets in Rome and since the third quarter of 2005 — that have higher price tags because tional Bus Trader, said the third- At the same time, the judge Cartersville, Ga. (See March 1 Bus when 428 were purchased, and 15 they’re equipped with reduced- quarter sales decrease was pretty rejected a request to lift the injunc- & Motorcoach News.) percent below the third quarter of emission ’07 engines and other much across the board, involving tion that was requested by Laidlaw And now it may be targeting last year — when 538 were delivered. new features. In other words, stick- virtually all models built for private- Education Service, which has schools. CONTINUED ON PAGE 10 þ The third quarter is typically er shock and an understandable CONTINUED ON PAGE 18 þ CONTINUED ON PAGE 16 þ MCI’S GO GREEN SALE INCENTIVE Fast-track your way to a greener fleet, and get a $6,000 credit. Upgrade to a low-emission MCI® J4500 or D4505 coach today and enjoy big year-end incentives. See our ad on page 7, and contact your regional sales manager. Call 1-866-MCICOACH (624-2622) or visit www.mcicoach.com. INTRODUCING3035RE A New Class of Passenger Transport has Arrived! Make room for our big innovation in smaller group The new ABC 3035RE brings smaller group transport transport. You asked for more big-coach features, to whole new level with more performance, amenities and the brand NEW 2008 ABC3035RE delivers! and value-added features than ever before: Our exclusive new rear-engine design, restyled body • Seating for up to • Air Lock Baggage Doors 41 passengers • Multiplexed 12 volt construction and spacious underfloor luggage storage • Underfloor Luggage Storage electrical system are just half the story. Inside a host of full-size coach • Spare Tire Located • Rear Window Option features elevate our NEWEST mid-size model to a Behind Front Bumper • Independent • Interchangeable 24 Volt HVAC System truly mini-coach status. Windshields • Independent Front Suspension • Stainless Steel Structures • Front Air Disc Brakes The 2008 3035RE is ready for inspection at your Below Floor Line • Full Size Rest Room nearby ABC Sales location. Contact an ABC Account • Seamless Side Glass with a Monogram Representative today or visit abc-companies.com • Dual Wiper Motors Stainless Steel Insert • LED Exterior Lighting • Carrier 05G Compressor for a complete listing. MIDWEST NORTHEAST SOUTHEAST SOUTHWEST WEST 800-222-2875 800-222-2873 800-222-2871 800-222-2877 800-322-2877 abc-companies.com Bus & Motorcoach NEWS INDUSTRY NEWS November 15, 2007 3 Ex-Lion Trailways president pleads guilt to tax fraud CAMDEN, N.J. — Dominick Paglione, However, the actual employee wages sub- three years in prison and a fine of $250,000. and casino service in New Jersey and former president and CEO of the former ject to withholding were $494,284, which U.S. Attorney Christopher J. Christie Pennsylvania from its operational facilities in Lion Trailways of New Jersey and Pennsyl- translated into $113,345 in taxes due the pointed out that parole has been abolished in Rio Grande, N.J., and Levittown, Pa. vania, has admitted in court he falsified fed- Internal Revenue Service. In other words, the federal system and defendants who are Lion’s affiliation with the Trailways eral tax records for six years to avoid paying Paglione underreported wages by $246,903 given prison terms must serve nearly all of Transportation System had been suspended at least $440,000 in payroll taxes. and taxes by $37,776 for the quarter. the time to which they are sentenced. but with new management and ownership the The admission came when Paglione pled Additionally, Paglione admitted that Paglione, 51, who is free on $50,000 company is requesting approval to again guilty to a single charge of falsifying an Em- between March 2001 and March 2006, he bond, will be sentenced by U.S. District affiliate with Trailways. ployer’s Quarterly Federal Tax Return (Form signed off on 14 additional false quarterly Court Judge Joseph E. Irenas on Jan. 25. “The call for an acceptance vote will 941) for the fourth quarter of 2003. federal tax returns, resulting in a total tax loss The tour and charter bus company that soon be distributed to our board for Lion to During that quarter, Paglione reported to to the IRS of more than $400,000. Palione headed has been in business nearly rejoin Team Trailways …,” said Gale Ells- the IRS that employee wages subject to with- The charge of subscribing to a false 30 years.
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