August 1, 2003 THE NEWS RESOURCE FOR THE BUS AND MOTORCOACH INDUSTRY Proposed rules will mean better hiring info WASHINGTON — The operation of commercial motor Federal Motor Carrier Safety Fuller disclosure of driver history is the goal vehicles on our nation’s roads and Administration has proposed posed rules will require employers information about former records three-times longer. highways,” said Acting FMCSA sweeping new rules designed to to divulge a former employee’s employees by making it a federal At the same time, the supple- Administrator Annette M. significantly improve the ability complete driving history, along regulatory requirement to do so. mental notice of proposed rule- Sandberg. “Providing employers of motorcoach and other com- with any problems the individual Additionally, the rules will making contains elements access to more information about mercial vehicle operators to make had with drugs and alcohol. oblige employers to respond to intended to ensure commercial driver safety performance history smarter and better informed hir- Importantly, the rules also will requests for information about a motor vehicle driver privacy. will ultimately save lives.” ing decisions. provide liability protection to former employee faster and to “These drivers are responsible Such rules have been a top pri- Among other things, the pro- employers for providing such hold on to employee-related for the safe, secure and reliable CONTINUED ON PAGE 8 ‘HANG IN THERE!’ Texas operator stays positive despite hurdles By Karen Crabtree CROSBY, Texas — After 12 years of watch- ing bus companies come and go in Houston, Daryl Johnson has grown weary of quality operators having to close their doors. Johnson’s father founded the family Daryl Johnson coach company, J&J Charters, in Crosby a dozen years ago to compete in the Houston market. The company still has its first bus, a 1979 MC-9. Investors to buy chunk of Coach USA Now the second-largest charter and tour oper- PERTH, Scotland — Stagecoach Completion of the transaction is sub- the sale are such well-known operators as ator in the market, with 17 coaches, J&J Group PLC plans to sell the Southeast ject to normal regulatory approvals, final America Charters of Charlotte, N.C.; Charters is struggling like much of the rest of the region of Coach USA, including the confirmation of financing and routine Southern Coach Co. of Durham, N.C.; coach industry. Florida operation, to a group of private closing conditions. The buyers are paying American Coach Lines in Norcross, Ga.; “Sometimes I come to work and I think, ‘have investors that includes two New York- $40 million in cash, with the balance Grayline of Fort Lauderdale, Fla.; I lost my mind?’” Johnson said in a recent inter- based investment organizations. financed with an $8 million note. American Bus Lines in Miami; Tippett view. Like other operators, Johnson faces a litany The sale price is $48 million. Coach USA’s Southeast region has Travel in Florida, and Dillion’s Bus of challenges: High fuel costs, staggering insur- The Southeast region of Coach USA been one of its better performing units Service in Millersville, Md. ance premiums, low-balling competitors, weak is comprised of eight companies in despite the lousy economy and the travel At one time, these Coach USA com- demand, skittish customers, and too many buses Maryland, Georgia, North Carolina, as slump in Florida. The region had sales of panies were owned by such industry stal- sitting idle in the yard each day. well as Florida. The units in those states $49.8 million in the 12 months ended warts as Louis Wade Jr., Billy Ray Rhyme, Yet, Johnson remains optimistic. operate more than 500 vehicles and April 30, with an operating profit — Calvin Cooper, Michael Gaddis, Marie He’s convinced the industry is starting to employ 620 people. The deal also before goodwill amortization — of $5.8 and Charles Tippett, Louis Cicerone and make a slow turn toward brighter days. includes the purchase of an additional 58 million, or a margin of more than 11 per- the Dillons — Keith, Brian and Ron. Meanwhile, he’s willing to share what he’s doing vehicles, representing $5 million of the cent. Brian Souter, chief executive of CONTINUED ON PAGE 9 purchase price. Among the companies included in CONTINUED ON PAGE 11 TheThe One More Time boost registration fees by 42 DOCKETDOCKET For the third time in four years, percent. Page 5 the NTSB has taken aim at 15- Safety Concern passenger vans. Page 4 Support sought A fatal fire on a paratransit bus Members of the U.S. Senate has industry safety experts More bad news have been asked to support once again pondering how to In October, motorcoach licens- coach industry intiatives that best to evacuate disabled pas- ing fees tripled in California. will help them compete more sengers. Page 4 Now, state legislators want to effectively. Page 6 One $142,500$142,500 Like Owner! 1999 PREVOST 40’ XL SPECIFICATIONS New! 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Story. “Even in difficult eco- costs over more people and vehi- than 50 coaches, serving primarily ness in greater Richmond, its pri- opportunities, and expand business nomic times, it’s essential to main- cles. the central East Coast. mary territory. Another 25 percent with existing clients. tain the level of service that our “Now, no matter who we go to, When Story and his team of the market is what Story calls For example, Richmond has a clients have come to expect.” growing base of corporations, many Acquiring Carey added a new ‘We’re adding on piece by piece. None of these are a of which are James River cus- dimension to James River’s corpo- tomers. These existing clients, as rate makeup, product mix and home run, but a bunch of base hits.’ well as corporations not being operational capability. Integrated served by James River, have into the strategic plan, Carey we can offer them something,” says began the planning process they “hard to get business,” meaning the become a primary target market. allows James River to set a course Story. “Charter, tour services, started with a realistic assessment competition has it largely locked “We can increase this market that includes: meeting and event planning, trans- of their market, the potential of up. The remaining 20-25 percent is because we had our foot in the • Offering a broader range of portation management services, various market segments and their composed primarily of price-sensi- door,” says Story. services; contract services, chauffeured serv- own capabilities. The market tive clients. To capture additional corporate • Targeting new niches, non- ices, you name it.” assessment concluded, among To foster growth, the James business, the company began call- traditional business and less price- Since 1928, James River has other things, that James River had River team decided on a three-part ing on potential corporate cus- sensitive markets; been a family owned motorcoach about maximized its penetration. approach: Target potential cus- tomers. At one company, they • Diversifying its products; company. Today, it operates a The company figures it has tomers and markets that are “not were told “we would use you