Motorcoach operators have important protections against having to compete with local transit agencies under the Federal Transit Administration’s Charter Service Rule.
Operators need to know what to do when they receive a charter service notification from a transit agency, explained Ken Presley, United Motorcoach Association’s Vice President, Legislative & Regulatory Affairs & Industry Relations/COO, during a recent United Motorcoach Town Hall.
“When you express an interest in doing the charter work, the transit authority is foreclosed from doing the service,” said Presley, adding operators should always remember “the public transit is not providing a service to you. They are putting the notice out because they intend to do that service.”
Presley summarized the most important steps and recommendations for following up on a notification.
- Maintain records of your negotiations.
- Contact the chartering party and negotiate in good faith.
- Do not submit a quote to the transit agency; this is a common error.
- You are not required to compete with the transit in price.
- Double-check the passenger count.
- If you fail to come to terms with the chartering party, the transit authority remains prohibited from offering the charter service.
- Should you decide not to pursue the charter, notify the transit you are no longer interested.
Presley adds that when operators receive a charter service notice, a public transit agency must provide an email notice of the request. Under FTA rules, the email must be sent by the close of business on the day the recipient receives the request unless the recipient received the request after 2 p.m. If that happens, then the recipient must send the notice by the close of business the next business day.
UMA members can watch the Town Hall meeting and download the slides for the full presentation. Operators should consult the FTA website to make sure they are listed in the registry and that their information is current.
Related:
UMA renews call for operators to get on charter service registry
