July 1, 2017 FMCSA cites lack of data in dropping insurance proposal WASHINGTON — The mo- and brokers. draw the advanced notice of knew even then this would create a to obtain sufficient data on indus- torcoach industry’s three-year bat- Insurance minimums for mo- rulemaking was welcomed news hardship and shrink the number of try practices with respect to the tle with the Federal Motor Carrier torcoaches were expected to at for the bus and motorcoach indus- small fleet operators and create an level of liability limits in excess of Safety Administration over a pro- least double to $10 million, and try,” said Ken Presley, vice presi- economic barrier to entry.” the agency’s minimum financial posal to at least double liability in- possibly rise to as much as $20 dent of industry relations and FMCSA announced last month responsibility requirements, the surance minimums appears to be million to $30 million per incident COO for the United Motorcoach that after reviewing all public com- cost of such premiums, and the over, at least for now. or claim, which industry officials Association. ments on the proposed rule, it de- frequency of and the amount by FMCSA said it was withdraw- said would force smaller operators “We’ve been fighting this insur- termined there is insufficient cost which bodily injury and property ing its November 28, 2014, pro- out of business. ance battle since 2014 when others or benefit data to support moving damage claims exceed policy lia- posal concerning increasing insur- “The decision by FMCSA, in the industry were advocating for forward with a rulemaking bility limits. ance minimums for commercial under Secretary of Transportation an increase in minimum insurance proposal. FMCSA said it received 2,181 motor carriers, freight forwarders Elaine Chao’s leadership, to with- limits,” Presley said. “Everyone The agency said it was unable CONTINUED ON PAGE 8 c Pigeon Forge attracting more coach tours since fires PIGEON FORGE, Tenn. — were not damaged. The devastating fires outside this The fire claimed 12 lives, anoth- popular resort town last November er died of a heart attack and another haven’t derailed tourism in the area in a vehicle fleeing the blaze, and known for Dollywood theme park 191 were injured. Tennessee Gov. and numerous other attractions, and Bill Haslam called the fire “the for being a gateway to Great Smoky worst in a century in Tennessee.” Mountains National Park. More than 2,460 structures Pigeon Forge attractions were were damaged or destroyed, ac- unscathed and business has been cording to coverage of the fire in steady, said Joy McNealy, senior local newspapers. sales manager for the Pigeon Forge Many of the structures be- Department of Tourism. New at- longed to employees who work at tractions also have opened recently Pigeon Forge and surrounding and two new hotels, including one areas and the outpouring of sup- with a water park, opened this port for them has been significant, spring, she said. including from motorcoach opera- The area around Gatlinburg, tors and tour passengers, McNealy six miles up U.S. Highway 321 and others said. from Pigeon Forge, was harder hit, “We’ve been receiving so The Island in Pigeon Forge is a shopping and entertainment complex with more than 60 retail and specialty shops, although its major attractions much support from all our state several restaurants, rides and games, dancing fountains and live music. along the main street, the Parkway, CONTINUED ON PAGE 10 c CH Bus lawsuit against ABC winding through the courts SANTA ANA, Calif. — An by spreading false information im- ruling expected this fall. The lawsuit, filed in Orange from CH Bus. 8-month-old lawsuit by CH Bus plying that Temsa was funding the In denying the motion, the court County, Calif., Superior Court, al- According to the lawsuit, Sales accusing ABC Companies of terrorist group ISIS. also asked CH Bus Sales to submit leges that Guth sent an anonymous WeDriveU, Guth’s client, also had defamation and unfair competition Guth no longer works at ABC. an amended complaint including letter to the entertainment company bid on the Netflix contract and, if is slowly making its way through ABC filed a motion to have the more detail to back up its claims Netflix, which had sought bids on a successful, planned to purchase the courts and appears to be suit dismissed, claiming the al- that the alleged defamatory state- contract for commuter bus services buses from ABC. months away from a final ruling. leged “false information” was con- ments hurt the company, interfered in the San Francisco Bay Area. When it appeared that Trans- CH Bus, which distributes stitutionally protected free speech with the bidding process and con- Transdev Services Inc., a CH dev/Compass was likely to win the Turkish-made Temsa motorcoach- on a public issue. stituted unfair competition. Bus client, teamed up with Com- contract, “ABC Bus Sales and es, filed the suit last fall against The court denied ABC’s mo- If ABC’s appeal is rejected, the pass Transportation Inc. to bid on Clint Guth schemed to smear the ABC and senior vice president tion earlier this year, and the com- underlying defamation case could the contract. If their bid was suc- reputations of Temsa, Transdev Clint Guth alleging that Guth tried pany’s appeal is pending before the go to trial later this year or early cessful, the companies planned to and Compass in order to increase to steer a bus contract to his client California Court of Appeal, with a next year. purchase at least 13 Temsa buses CONTINUED ON PAGE 8 c Go with an MCI Pre-Owned Pro View our pre-owned inventory online at mcicoach.com/preowned PERMIT NO 1424 NO PERMIT A New Flyer company PHOENIX AZ PHOENIX New Jersey Texas Illinois California Florida CANADA US POSTAGE PAID POSTAGE US Walter Sturdivant Randy Wilcox Brian Hill Bob Dethloff Brian Lichter Marshall Deems Jason Rounsaville Janet Cathey Guy Charron Guy Tessier PRESORT STD PRESORT July 1 July or on or before deliver Please ostmaster: P (609) 876-3713 (609) 876-3711 (214) 725-0490 (847) 867-5191 (224) 688-6351 (818) 519-7193 (720) 383-5797 (678) 472-1743 (514) 240-8448 (204)771-8271 BMN Banner ad 050417.indd 1 5/4/17 5:09 PM CELEBRATING Years OF PARTNERSHIP In 1987, ABC Companies introduced the Van Hool T800 motorcoach to America. Today, the ABC and Van Hool family of products represent three generations of coach innovation, fueled by the enduring patronage of our North American customers. Thank you for 30 years of loyalty, trust, and insights that ignite our passion today and drive our leadership of tomorrow. We look forward to serving you for decades to come! Moving Forward 00YEARS www.abc-companies.com 877.427.7278 331987 2017 Bus & Motorcoach News INDUSTRY NEWS July 1, 2017 3 Greyhound revenue dips but profits rise 2.7 percent ABERDEEN, Scotland — 25 percent of individuals driving nue occurred during the second FirstGroup said in releasing com- which primarily serves popular city Revenue again declined at Grey- America’s highways with no auto half of the fiscal year. First-half panywide financial results for fis- pairs, increased by 1.3 percent in hound Lines in fiscal 2017, but insurance also has reduced the revenue was down 3.9 percent, cal 2017. fiscal 2017, with both Express and North America’s largest intercity pool of possible bus riders. while second-half revenue in- “We will continue to focus on traditional Greyhound “experienc- bus operator eked out a 2.7 percent Despite the challenges, Grey- creased 0.8 percent. matching our timetables to de- ing greater resilience” over shorter profit gain for the year. hound increased its adjusted oper- Although the second-half in- mand to maximize the consider- haul (up to 450 miles) trips than Greyhound’s parent company, ating profit for the year to $55.2 crease was narrow, FirstGroup said able operating leverage in the busi- long haul, FirstGroup said. FirstGroup, attributed the modest million, from $54.4 million in fis- it was confident it marked a reve- ness,” the company added. “We have continued to flex profit increase during the 12 cal 2016, a 2.7 percent increase. nue turnaround for Greyhound. FirstGroup does not expect mileage operated in response to de- months ended March 31 to the on- That translated to an adjusted “With our pricing and yield fuel prices to be as much of a fac- mand trends, resulting in modest going retooling of Greyhound’s operating margin for Greyhound of management algorithms continu- tor in fiscal 2018, which began improvements to revenue per mile, business model and the introduc- 6.2 percent in fiscal 2017 versus a ing to increase in effectiveness we April 1 — provided they do not supplemented by our transition to tion of technology-based systems. margin of 6 percent for fiscal 2016. are confident Greyhound can re- turn volatile or sharply lower. one-way ticket pricing in July 2016, (FirstGroup earnings are reported An uptick in Greyhound reve- turn to growth in the year ahead,” Revenue at Greyhound Express, and our other business model de- on Page 12.) velopments,” the company said. For fiscal 2017, Greyhound The overhaul of Greyhound’s sales totaled $894 million, down 2 Greyhound expands Google deal customer-facing systems in the percent from fiscal 2016 revenue past half-dozen years now allows of $914 million. Annual revenue DALLAS — A 6-month-old portation and get walking direc- easy and convenient way for cus- the company to deploy airline-style has fallen by $128 million since partnership between Google Maps tions from various transit tomers to explore their journey yield management and real-time fiscal 2013, when sales totaled and BoltBus, a unit of Greyhound locations.