Tough, tough challenges continue to dog motorcoach industry
Operating a tour and charter motorcoach company is a lot like farming. Both are outdoor activities. Both are a challenge everyday. Both operate in an environment over which they have little or no control. And, neither is an exact science.
The goal in both fields is to do the best you can every day with the hand you are dealt.
In 2003, that wasn't easy for either farmers or motorcoach operators.
Soaring insurance costs forced countless coach companies out of business.
Soaring fuel prices during the first half of the year shaved margins.
The war in Iraq and on-going terrorist threats played havoc with consumer confidence, keeping millions of potential travelers at home and out of buses.
Anemic coach values limited the ability of operators to find financing, sell surplus equipment without incurring huge losses, or get decent trade-in allowances to ease the path to newer buses.
Lowballers continued to set price levels in many markers.
And everywhere you turned, state and local governments were attempting to balance their budgets, in part, on the backs of motorcoach operators.
States stepped up collection of corporate franchise taxes from out-of-state carriers, increased commercial vehicle registration and driver license fees, increased fuel taxes, imposed sales taxes on coach services, and - in one major state - eliminated the rolling stock tax exemption.
Thousands of operators were able to keep their buses rolling only by being strong, aggressive, smart, tough, resilient, innovative, versatile and resolute. Anything less spelled doom.
The year began with the 108th Congress convening with the Democrats in the minority for the first time in 50 years. The partisan bickering and gridlock of recent years worsened as the year wore on, culminating in Congress' inability to pass a new highway and public transportation bill by the time the old law expired Oct. 1.
New Jersey led the parade of states that boosted minimum corporate taxes or stepped up collection of corporate taxes from out-of-state operators. Not to be outdone by any state, New Jersey did both. It more than doubled its corporate minimum tax and it aggressively pursued operators who may not have been contributing their pound of flesh to New Jersey tax collectors.
In mid-February, the industry gathered at Motorcoach Expo 2003 in Orlando to lick its wounds, as well as learn new ideas for meeting the challenges confronting it at every turn. Expo provided a blend of professional development speakers, business building seminars, valuable networking sessions and a trade show floor full of vendors hungry for business.
Eastern and northeastern operators returned home from Expo to learn that the District of Columbia city council had increased some parking fines from $20 to $500.
Illinois operators launched a lobbying effort to revise an onerous law that required coach drivers in Illinois to have school bus drivers licenses before they could transport children on school-related trips. (See story on Page XX.)
The worst winter storm in seven years hit the Northeast, shutting down scores of coach operations for days.
The Iraq War sent fuel prices off the Richter scale, pushing them 33 percent higher than a year earlier. The war prompted groups across the U.S. to cancel charters or seek postponements.
ExecConnect America, a luxury coach service operating daily between Pittsburgh and Cleveland, suspended service after nine months in business.
Coach USA began an earnest effort to sell off pieces of the company, calling on and holding briefing sessions with potential buyers from coast to coast. Eventually, Coach USA's parent company would succeed in selling whole regions and segments of the company. (See story Page XX.)
Operators across the U.S. worked diligently to cope with the impact of the Iraq war and consumer fears. Refinancing, SBA loans, probing for new niches, revising strategies and aggressive marketing and selling helped operators fight the affects of the war and poor travel environment.
Spring brought some good news to the industry: the Bush Administration decided motorcoach drivers would be exempt from an overhaul of the hours-of-service rule. Only truckers would have to bear that burden. (See story Page XX.)
But coach operators in eastern Canada were dealt a disastrous blow when a health scare called SARS spread from China to Ontario, resulting in widespread cancellations of bus and air travel, conventions and school.
A tourism icon, Cypress Gardens, closed.
The Bush Administration unveiled a $247 billion highway and public transportation bill that was modest when compared to plans worked up in both houses of Congress.
Blue Bird Corp. announced it planned to make a strong drive to be more competitive in both the motorcoach and commercial bus markets. Blue Bird also named Jerry Bust president and CEO, and appointed Wayne Joseph vice president and general manager of the coach and RV division.
A coach driver in New York was sentenced to 10 years in prison after the bus he was driving crashed, killing five people. The driver admitted he gambled most of the night and got almost no sleep before loading 44 passengers for a trip home.
The New York Daily News investigated the bus services serving the Chinatowns of New York, Boston and Philadelphia and found that a nasty little war for customers and turf was being fought.
Laidlaw changed CEOs at its Greyhound Lines subsidiary, hiring a top executive from Krispy Kreme Doughnuts, Stephen Gorman, and easing Craig Lentzsch out the door. Lentzsch landed on his feet, however, becoming CEO of CUSA, a new company formed to buy two regions of Coach USA. Now, Lentzsch is competing with his former employer in Texas and other markets.
Annette Sandberg was sworn in as administrator of the Federal Motor Carrier Safety Administration, giving the safety agency a full-fledged director for the first time in seven months.
The largest blackout in U.S. history hit the upper Midwest and Northeast, resulting in transportation problems throughout the region. Coach companies saved the day for hundreds of thousands of travelers.
The U.S. Transportation Security Administration awarded first-ever federal grants to improve coach industry security. A total of 57 companies, plus the United Motorcoach Association and the American Bus Association, were awarded grants.
The FMCSA issued rules that brought 15-passenger commercial vans under Federal Motor Carrier Safety Regulations.
Daily luxury motorcoach service was initiated between Boston and New York City.
New state motorcoach associations were formed in Alabama, Illinois, Louisiana and Texas/Oklahoma/New Mexico.
The FMCSA began accepting applications for exemptions from its rules that ban some diabetics from operating commercial vehicles, including buses.
Seventy-four coach companies were awarded grants from the Federal Transit Administration to help make their fleets more accessible to individuals with disabilities.
The Quebec Bus Owners Association established a "certified carrier" program to recognize operators that meet rigorous quality standards.
UMA and ABA announced they plan to jointly develop a comprehensive security training program for thousands of motorcoach operators.
It was revealed that the FMCSA is developing a Web sit to provide consumer-type information to buyers of passenger transportation services.
Wildfires in Southern California were costly to motorcoach operators in the region.
Prevost Car named Gaetan Bolduc president, and Gilles Dion president of its Nova Bus subsidiary. Claude Picard was named vice president of marketing at Prevost and Nova Bus. Dann Wiltgen was named national director of U.S. coach sales.
Gene Hall was named vice president of private sector sales at Motor Coach Industries.
Drew Tuller joined Upstate Tours in New York as vice president and general manager, while David Eaton was named general manager of Conway Tours in Rhode Island.
Setra of North America named Robert Jones as vice president of sales and marketing, and hired Al Abram as vice president of customer finance.
Peter Pan Bus Lines and MCI marked their 70th anniversaries.