Bus & Motorcoach News
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Merry Christmas/ Happy New Year! December 15, 2006 WHAT’S GOING ON IN THE BUS INDUSTRY MOTORCOACH EXPO 2007 Talks on charter rules end with no agreement; FTA will propose rules WASHINGTON — A spirited, Administration. eight-month effort by the motor- FTA lawyers began rewriting coach and public transit industries the rules immediately and could to rewrite the 20-year-old federal have them ready for the lengthy charter service regulations has end- adoption process as early as next ed as expected — in a stalemate. month, said the FTA’s chief coun- Representatives of the two sel, David Horner, who will direct often-feuding industries wrapped the drafting process. up a series of monthly two-day He said the new rules could be “negotiated rulemaking sessions” in place in anywhere from 3 this month without settling a num- months to 14 months, depending ber of key differences that federal on the length of several required regulators who brought them administrative steps and the together had hoped would be amount of public comment the The Sunliner Coach from Stallion Bus Industries has a Cummins engine, Allison transmission and Thermo King A/C. decided. proposed rules generate after they Now, the issues that have long are published. Chinese buses to be unveiled at Expo split the private and public carriers Under the rulemaking process, over the type of charter work that provisions that were endorsed by Variety of models public transit agencies should be both sides during the negotiation allowed to do will be settled by sessions will be written into the to be offered for attorneys at the Federal Transit CONTINUED ON PAGE 10 þ U.S. coach market NEW ORLEANS — When Investment group purchasing attendees at Motorcoach Expo 2007 walk onto the show floor next industry giant Coach America month, they’ll find vehicles that have never before been seen at an NEW YORK — Three years expected to close early next year, Expo and vehicles they’ve proba- after it was formed, Coach Amer- were not disclosed. The transac- bly never encountered — buses ica is being sold by one New York tion is subject to approval by the and motorcoaches made in China. investment firm to another New U.S. Surface Transportation Board, Two new companies that plan York investment group. which already has given the deal to import Chinese buses and sell The Express Bus from Stallion is a Chinese-built shuttle. Fenway Partners of New York its pro-forma preliminary OK. them in the U.S. will have their City, which describes itself as a Final approval is likely, pending Americanized Chinese-built buses buses made in China can find a headed by individuals with exten- “leading middle market private any protests. for eyeing, driving and tire kicking. market in the U.S. sive experience in the U.S. bus equity firm,” announced it will Craig Lentzsch, CEO of Coach During the past decade, as the In fact, a slew of Chinese buses industry. These two companies are U.S. appetite for all things Chinese are headed for North America, the ones that will be exhibiting at acquire Coach America from America, said the change in own- has expanded, imports of Chinese- ranging from 45- and 40-foot mo- Motorcoach Expo. Kohlberg & Co. of Mt Kisco, N.Y. ership will help the company grow made clothing, DVDs, furniture, torcoaches, to 35-foot coach-like The third company is a U.S. Coach America is the largest and develop. microwaves, shoes, toys and tens buses, to 25-30 passenger shuttles, manufacturer of recreational vehi- tour and charter bus operator in “We are pleased to join with of thousands of other products to low-floor transits. cles that is diversifying into the North America and the second- Fenway Partners to further have mushroomed from $50 bil- At least three different compa- seated-bus market. It is not making largest motorcoach services pro- enhance and accelerate Coach lion annually to an expected $275 nies are planning to distribute the trip to New Orleans, however. vider in the U.S., after Coach USA. America’s trajectory of opera- billion this year. Chinese-made or -designed buses, Obviously, the three companies Its 31 bus subsidiaries operate in tional and financial success. As we Now, we’re about to find out if with two of the import groups CONTINUED ON PAGE 30 þ 38 states and produced revenues of work with Fenway to take advan- $330 million last year. tage of strategic opportunities we Expo Drives into New Orleans/See Special Section Terms of the deal, which is CONTINUED ON PAGE 8 þ A ACCESSORIZE YOUR FLEET IN AT UMA UR DIVERSE COACH AND BUS EQUIPMENT JOIN THE LOOK GREAT ON ANY FLEET! Looking to make a major statement to your customers? Adding any of our exclusive Van Hool and ABC equipment to your fleet will impress passengers and compliment your bottom line. 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I’ve ago, Charter Bus America launched Peterson. paid for at least a year’s worth of go to 91 bus operators an online reservation system for “We know customers and this advertising just in the first WASHINGTON — Ninety- requested by line-run companies, the motorcoach industry. motorcoach operators prefer to month,” said Dan O’Meara, presi- one motorcoach companies from and $17.8 million sought by other Now, the company is back work with each other directly dent of Priority One. across the U.S. have been awarded types of operators. with a new service designed to rather than through a middleman,” Charter Bus America entered grants to help pay for installing The FTA said its selections help charter bus companies com- he continued. “We’re helping to the coach industry last year when wheelchair lifts in their buses or to were based on three factors — pete more effectively with bus fix it.” it launched the industry’s first buy new coaches with lifts. each applicant’s responsiveness to brokers on the Internet. Priority One Transportation, a Web site that provides automated The grants, totaling $7.4 mil- criteria laid out in the law that cre- Essentially, the new marketing Dallas-based motorcoach opera- charter bus quotes to customers lion, were awarded under the U.S. ated the program, fleet size, and service gets charter bus compa- online in seconds, much like Department of Transportation level of funding received in previ- nies on the first page when a ‘We want to help motor- Expedia and Orbitz do for airline, Over-the-Road Bus Accessibility ous years. potential customer uses a major hotel and car reservations. (See Program, which has been around Because demand for the for seven years. money exceeded supply, most suc- Internet search engine. coach companies grow Dec. 15, 2005 Bus & Motorcoach Although the federal govern- cessful applicants received far less The goal, says Charter Bus News.) their business through ment is nearly three months into funding than requested, and those America CEO Dylan Peterson, is Peterson said his new service fiscal 2007, the latest wheelchair applicants “with weaker applica- to help bus companies win new better marketing.’ complements, rather than con- lift grants are for fiscal 2006. tions were not selected for fund- business from customers who flicts with, his reservation system. The Federal Transit Adminis- ing,” the FTA said. shop via the Internet, plus help “We want to help motorcoach tration, which administers the pro- The grant winners will add them bypass bus brokers. tor and one of the first companies companies grow their business gram, provided no explanation for lifts to 94 new vehicles, retrofit “We are helping bus compa- to sign up with the service, is now through better marketing. Some the tardiness of its announcement lifts on 118 vehicles, and use nies beat the brokers,” said Peter- found on the first page of major customers appreciate the conven- of the FY ’06 grants. $70,765 for training. son. search engines when customers ience of shopping through our Of the $7.4 million awarded, Each company that applied “These days, customers start search using the popular term: automated system, while others $5.6 million went to intercity bus will receive a letter that explains shopping by going to the Internet, “Dallas charter bus.” prefer to go direct to the bus com- lines and $1.8 million went to how the FTA made its funding but all they find on the search A report provided by Charter panies. other types of operators, including decisions. engines are a bunch of bus bro- Bus America shows that Internet “The point is, our services commuter, charter and tour Questions about the grants kers instead of actual motorcoach links connecting customers with help move the industry forward in providers.