WASHINGTON The number of private bus operators registered to receive charter notices from public transit agencies under the revised federal charter service rule has dropped dramatically, touching off concerns throughout the motorcoach industry.

The Federal Transit Administration said registered operators now total just 650, well below the 1,400 that were approved for the list between January 2008, when the revised charter service rule was first published, and last January when the initial two-year registrations began expiring.

"Everyone should be alarmed by this dramatic decrease in registered charter operators," said Ken Presley, vice president of industry relations at the United Motorcoach Association.

He said failing to register or re-register opens the door for public transit agencies to begin operating charters because they only are obligated to notify private carriers of charter opportunities that are on the Internet-based list maintained by the FTA.

"If no non-taxpayer-funded charter bus operators are registered in their geographic area then transits may provide charter service at will," he stressed. "Once publicly-funded transits perform local charter work it can often be difficult to reverse and can, in fact, be precedent setting."

Under the charter service rule, transit agencies are required to inform private motorcoach operators that are on the FTA charter list of any charter work they are interested in doing.

If private operators step up, then the transit agency has to step aside and let the private carriers negotiate for the work with the potential customer. If none respond, the transit agency is free to run the charter.

"It appears there will be many areas in the country where publicly-funded transits will not have a registered charter operator in their geographic area, which technically frees them to perform as much charter work as they prefer," Presley said.

Call to Action I

He called on operators across the county to act quickly and get their companies on the list for service in their areas.

While interest in the charter rule seems to have waned, overall the two-year-old regulation appears to be doing its job of helping both private and public operators better understand what charters actually are and who can legally do them.

"Generally, all of the tools available to people have been well used since the new rules publication," noted FTA spokesman Paul Griffo. "Furthermore, the rule seems to do what it was meant to do, clearly define charters and diminish the overall number of complaints."

He noted that during the six years before the rule was rewritten, there were an average of nearly 18 complaints from private operators annually, while in 2008 the number dropped to five and last year there were only three.

"The greatest improvement for both sides has been the clarity provided by the new rule," said Griffo. "Unlike the old rule, the new rule spells out in much greater detail what services are charter and what services arent. This clear distinction has made it easier for both sides to understand and follow the rule, which is certainly good for both."

Consensus: Rule working

Steve Klika, president of the International Motor Coach Group Inc., who was among the central figures in pushing implementation of the revised rule, agreed, saying he has been pleased with how well the rule has worked.

"I think the charter rule has gone very well," he said. "There are some public transits that seem to have some difficulty with it but we are seeing far less complaints."

Presley, who also played a role in the new rule and who has been following it closely since, concurred.

"To be sure there have been a few bumps in the road, such as King County (Wash.) Metro, but I think most everyone involved would agree that on balance the charter service rule is working well in both serving the public and protecting the non-taxpayer-funded charter bus operators as mandated by Congress," he said.

King County Metro has been a rogue in the process, initiating a running feud with private charter operators over sports shuttles in Seattle, and then managing to convince a U.S. senator to pass legislation that exempts the county from the regulation.

However, other public transit agencies and private carriers have bought into the rule and say it has been beneficial.

"A few publicly funded transits have commented privately that the rule actually got them off the hook, as local charter work for them was often a budget buster and non-taxpayer-funded charter bus operators have commented that they benefit from local charter work, especially large local events, which affords publicity they would not have received otherwise," Presley noted.

Klika said he has seen a much more cooperative spirit between private carriers and public transit agencies all across the country.

So, whats going on?

Still, the rule, which was the product of nearly a year of sometime heated negotiations between public and private carriers and FTA officials, seems to have lost some interest among operators.

Presley suspects a number of things are to blame, including a misunderstanding of the rule, a declining pool of operators, and carriers who have begun working closely with transit agencies and do not want to get involved in the registration program.

He suggested that some operators perceived the program as a potential source of referred business or that the new business was to be contracted through their local public transit agency. In fact, it is neither.

Transit agencies do not refer business to local charter companies and operators notified of potential charter work have to negotiate a deal directly with the potential customers.

"I am concerned that many non-taxpayer-funded charter bus operators do not realize that registering on the FTA website caused many publicly funded transit operations to simply decline charter requests, thereby pushing the revenue into the local marketplace," he said.

Presley said the sour economy has played a role in the dwindling numbers as well; he suspects a number of operators no longer are in business, which has reduced the pool of operators.

Although no one in the industry is quite sure how many private interstate carriers there are in the United States, estimates run anywhere from 2,000 to 4,000. The Federal Motor Carrier Safety Administration routinely uses a number between 3,400 and 3,600, while others often use much lower numbers.

Out of comfort zone

Additionally, Presley said some operators have backed out of the program because they found that much local special-event transportation is per-capita work and they are not accustomed to that type of revenue stream.

In other instances, such as in Rochester, N.Y., local transit agencies have received FTA approval to operate shuttles for free or for regular fares.

"The deck seems to always be stacked against the private operators unless they take the initiative to establish a working relationship with local leaders and the transit (agency)," he added.

Some operators have done just that, according to Presley, and that, too, has helped reduce the registration number because they no longer wish to use the notification process.

"But I suspect thats a good thing," he said. "In fact, one of the best things that has come from the revised rule is how many publicly funded transits are now working closely with local, non-taxpayer-funded charter bus operators; both making sure the tax-paying public is served."

Klika suggested that transit agencies acceptance of the rule probably is another reason the registration numbers are down.

"Most of them understand the rule, know they are being watched and dont want the financial responsibility if they get caught breaking the rule," he said. "So, it is not an issue and nothing is going on in their area so the private operators dont bother to register."

Call to Action II

He expressed concern, too, that some operators might have become too complacent.

"We have to be vigilant and follow the rules and we must remain proactive and stay strong in defending them," he stressed. "And that means registering." Others in the industry suggested that many operators in rural areas across the country do not take part in the program because they either do not have a public transit agency in their area or they are too far away from where a municipal bus system operates to make it financially worth while to get involved in the program.

Some believe, too, that small operators that are not very computer literate may be intimidated by the process because they have to use the Internet to register and most charter notices are sent by email.

Registering: No sweat

However, most operators who recently signed up say the electronic process is easy and quick.

"It is one of the simplest government forms I have ever filled out," said Patricia Burton of Leisure Time Charters and Tours in Emerson, Ga.

Some have had minor technical problems with the interactive form. But once they solved that the process was simple.

Sindy Lister of Teton Stage Lines in Idaho Falls, Idaho, said she needed some assistance with a technical problem to complete the sign-up process, but other than that the form itself was pretty simple.

Griffo said the FTA has had technical problems on the website from time-to-time, but they have been fixed quickly.

For those interested in getting on the list, go to www.fta.dot.gov/CharterRegistration and click on "I accept these terms" and then on "Submit new private charter operator registration."

Assistance is available by calling FTA ombudsman Crystal Frederick at (202) 366-4063, and be sure to check the list often because it could take several days before your new listing is posted.