December 1, 2009 Associations warn of attack on charter service rule When the Federal Transit Ad- Although they had agreed dur- the rule reworked so they can start we have to do it again,” hibit the FTA from enforcing the ministration issued its revised rule ing negotiations to about 80 per- doing charters again. Although the transit agencies charter rule in her state. And, for charter operations a year and a cent of the rule, they viewed it as “It is a good rule and the pub- appear to be behind widening ef- because she chairs the Senate half ago, motorcoach operators bringing an end to the oft-times lu- lic-funded transit agencies have forts to tamper with the charter Transportation, Housing and Urban across the country were elated. crative charter business that had been angry ever since,” Clyde Hart, rule, it is members of Congress Development Appropriations Sub- Finally, they figured, they been providing them with addition- vice president of the American Bus who have moved out front on the committee, other committee mem- would be on an even playing field al revenues. Association told the more than 100 issue. bers now are talking about adding with public transit agencies, which Well, according to a team of ex- CBA members who attended the U.S. Sen. Patty Murray, a Dem- their states to the amendment. had been taking away charter busi- perts speaking at the annual con- meeting. ocrat from Washington state, sev- Also, two California congress- ness from them for years. vention of the California Bus Asso- “We believe the stars were eral weeks ago attached an amend- men, Republican Rep. David Drei- Transit agencies, however, were ciation, the transit agencies are still aligned in our favor for us to get the ment to the 2010 transportation er and Democrat Rep. Adam Schiff, not so happy. angry and they’re hoping to have rule we got, but that will change if appropriations bill that would pro- CONTINUED ON PAGE 10 c Diesel fuel will average Bring patience, paperwork nearly $3 a gallon in ’10 Motorcoach financing is plentiful WASHINGTON — Doing cents from the department’s previ- CARLSBAD, Calif. — For not too much different than past Others on a panel of finance your budget for 2010? ous monthly forecast, and the 2010 motorcoach operators planning to requirements. experts who were brought together The average price of diesel fuel projection is 16 cents higher than purchase a new or pre-owned coach “We’re comfortable with the to discuss bus financing issues next year will be 50 cents a gallon the $2.78 forecast in October. next year financing shouldn’t be motorcoach industry and we’re shared similar views, although higher than this year, the U.S. De- Fuel price increases this winter much of a worry. just looking for the right deals some cautioned that getting loans partment of Energy predicts. — from a year ago — are being led Major motorcoach lenders say now,” said Peter King, of TCF could take a little longer than they Retail diesel will average $2.79 by a projected $7 gain in crude oil they have enough money to meet Equipment Finance of Minneton- have in the past. during this year’s fourth quarter, to $77 a barrel, DOE said. demand. ka, Minn. “It takes a little more and rise 50 cents from this year’s Regular gasoline in November However, they cautioned oper- Matt Hotchkiss of Well Fargo time now and you will need to be a projected average to nearly $3 a will average 15 cents a gallon ators attending the annual conven- Equipment Finance in Minneapo- little more patient, but we are get- gallon next year, says the USDOE. higher than it did in October, or tion of the California Bus Associa- lis agreed, noting that as long as ting out the financing,” said Shari The national average price of $2.70 a gallon, and will average tion that they will have to show profitability stays where it is, there Sanders of ABC Companies. the motorcoach industry’s main $2.66 in the fourth quarter. that they have a strong business are no reasons for Wells Fargo to Mike Denny of MCI Financial fuel will end up being $2.48 per The projected year-over-year plan, are up front about their fi- change its standard requirements Services suggested, too, that oper- gallon this year, and $2.94 in 2010, increases in gasoline and diesel nancial strengths and weaknesses, for motorcoach loans. ators may have to work a little the federal agency forecasts. “include a small increase in refin- and have the cash flow to handle “We have no restraints on capi- harder putting their financial pic- The fourth-quarter projection, ing margins as a result of the econ- new payments. tal and as long as people qualify, ture together for the lenders, but following diesel’s $2.63 average in omy-related increases in demand,” And, despite the sour national we are ready to finance their mo- the money will be there. August and September, is up 19 USDOE said. economy, they point out that that’s torcoaches,” he added. CONTINUED ON PAGE 12 c Diligence can help lower risks in coach operations Operating a motorcoach com- torcoach operators attending the good at identifying risks as we are each of them. performing an audit. pany can be as risky as… annual four-day conference of the at knowing what to do when it Such a game plan, he stressed, “You need to have a formal Well, it really doesn’t matter. California Bus Association last blows up,” he emphasized. can result in fewer accidents and procedure for risk identification, It’s risky much of the time and month. Crescenzo, a frequent speaker claims and, ultimately, lower in- someone has to be assigned to do learning how to manage that risk He said learning how to recog- at motorcoach industry meetings surance premiums. that at your company,” he can often make the difference be- nize risks of all types – high, low throughout the country, suggested Crescenzo warned that if op- asserted. tween profit and loss, success and and medium – is the key to manag- operators develop a simple score erators don’t take the time to iden- failure. ing them and possibly avoiding di- sheet to identify the risks involved tity the risks, then someone else Risks enumerated That’s the message Robert sastrous and costly problems from in each trip they take. will and that someone is likely to He recommended operators Crescenzo, vice president of Lanc- occurring. And, after recognizing them, be a plaintiff lawyer pursing a create a risk assessment form that er Insurance Co., delivered to mo- “We sometimes are not as carefully assessing and addressing claim, or a government regulator CONTINUED ON PAGE 12 c See the City, While you Wait Free smart car loaner vehicle* Available at all Daimler Buses Service Centers. * Some restrictions apply Metro New York • Metro Orlando • Greensboro • 800.882.8054 ABC C o m p A n i e s QualityQuality Pre-OwnedPre-Owned Equipment...Equipment... 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During that banks and pri- they plan to begin co-locating their tions’ two main business events Ferguson will succeed current period, revenue more than tripled, vate companies, annual business meetings — the takes the collaboration to a new Daimler Buses N.A. President/ the product line was reoriented, f o c u s i n g o n NTA Annual Convention and the level, with the goal of bringing CEO Dr. Andreas Strecker, who and business processes and orga- treasury and fi- Richard Ferguson UMA Motorcoach Expo, during more value and expanded opportu- has held the position for the past nizational structures refined. nancing, as well the first quarter of 2013.