The Private
Motorcoach and Bus
Industry
A Presentation by: Clyde Hart,
Senior Vice President
American Bus Association
1
American Bus Association

Trade association for the private intercity bus and charter and tour
industry.

Approx. 1000 private bus operators.

40,000 motorcoaches (i.e., at least 35’ vehicle with an elevated
passenger deck located over a baggage compartment*).

Provide: intercity, charter and tour, commuter, airport shuttle
services nationwide.

The motorcoach industry provides 762 million passenger trips
annually, which is more service in two weeks than Amtrak provides
in the same year.
* Section 3038 Public Law 105-178, 49 USC 5310 note.
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Private Bus industry works without
significant subsidy
 Private
bus operators pay a reduced
federal fuel tax (7.3 cents a gallon of a
24.4 cents a gallon tax).
 Publicly funded transit agencies and
Amtrak pay no federal fuel tax.
 Industry competes for $10 million annually
in security grants.
 Industry competes for $7 million annually
to put wheelchair lifts on motorcoaches.
3
Summary Statistics for the
Motorcoach Industry in the U.S.
and Canada, 2007-2008

Key Statistics

Passenger Trips

Passenger Miles

Service Miles

Number of MCs

Source: Nathan Associates, Inc.
2007
751,000,000
2008
%Change
762,000,000
1.5
65,496,000,000
65,088,000,000
-0.6
1,798,000,000
1,827,000,000
1.6
33,536
35,217
5.0
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Economic Impact of Private
Motorcoach Industry
United States


The motorcoach industry supports 1,056,800 jobs in the
country and creates $112,667,533,000 in economic activity
Florida


The motorcoach industry supports 23,400 in the state and
creates $2,602,094,900 in economic activity
Florida’s 8th Congressional District


The motorcoach industry supports 1,230 in FL-8 and creates
$136,995,690 in economic activity
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Environmental Benefits
 According
to The Union Of Concerned
Scientists, motorcoaches produce less
global warming pollution than planes,
trains or automobiles.
 Coaches also fight congestion, as each
coach has the capacity to take up to 55
cars off of the road at one time.
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Passenger Miles per Gallon of Fuel
by Mode of Transportation
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Intercity Service






Numerous carriers provide intercity bus service
nationwide.
Legacy carriers (e.g. Greyhound; Peter Pan; Jefferson
Lines; Rimrock Stages; Northwest Stages).
New Model carriers (e.g. Megabus, Bolt Bus, Vamoose
Bus, Jefferson Rocket Express, Fung Wah).
Megabus alone moves over 4 million passengers a year
serving 40 major cities.
BoltBus has served over 3 million passengers, expected
to reach 4 million by end of year
The Southwest Airlines model for the 2010s?
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Today’s Intercity Bus Service
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New Intercity Service Trends
 Internet
based reservations system.
 Express service between city pairs.
 Pick up and discharge in major urban
centers, connecting to other modes of
transportation.
 Electronic amenities: Wi-Fi, satellite radio,
movies, “plug-ins”.
 Luxury seating, food service, extra leg
room, “classes of service”.
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The Megabus Network
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Problems
 Cities
view intercity bus service as a “cash
cow”.
 Proposals to tax service for picking up on
city streets or forcing buses into terminals.
 Bus terminals typically not close to other
modes of transportation.
 Overzealous environmental regulations
 Increasing federal mandates
 Lack of federal parity
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Charter Bus Regulation

1970s FTA rule prevents federally funded transit
agencies from performing charter work when
there is a willing and able private operator
available.
 In D.C. alone WMATA admitted to doing $2
million in charter work in 2007.
 In 2008 Congress mandated an FTA negotiated
rulemaking procedure to reform the charter bus
rule.
 The rulemaking involved 21 representatives of
private and public transportation stakeholders
over 8 months.
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The Resultant Rulemaking






Centered the complaint process in FTA’s Chief
Counsel’s Office.
Rationalized definition of “Charter”.
Provided for penalties for repeated violations of
the rule.
Established an Appeals Process.
Exemption process for unique events.
Web site for private carriers to register to provide
service.
Web site for non profit social service entities to
obtain service at reduced rates.
14
Public Law 111-117

Section 172 of the FY 2010 Consolidated Appropriations Act: “None
of the funds provided or limited under this act may be used to
enforce regulations related to charter bus service under part 604 of
title 49 Code of Federal Regulations, for any transit agency who
during FY 2008 was both initially granted a 60-day period to come
into compliance with part 604 and then was subsequently granted
an exception from said part”.

The provision (known as the “Murray Amendment”) permits King
County Metro (and no other agency) to provide their federally funded
transit buses for service to Seattle Mariners’ and Seattle Seahawks’
games and other special events outside of their regular public
transportation routes at the expense of private, tax paying
motorcoach companies and against whom the FTA may not act.
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ABA v. Rogoff

ABA and UMA sued FTA Administrator Rogoff alleging that Section
172 violated the First (right to petition Congress for redress of
grievances) and Fifth (rights to procedural due process and to equal
protection) Amendments of the Constitution and the Separation of
Powers.

On June 9, 2010 Judge Ellen Huvelle (U.S. District Court) found
Section 172 to be unconstitutional in that it targeted a single group
(King County charter bus operators), while other similarly situated
entities are free to exercise their full right to challenge local public
competitors under the Charter Rule.

The Department of Justice appealed that ruling and oral argument
on the appeal was held before the U.S. Court of Appeals for the
District of Columbia Circuit on September 23, 2010.
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FY 2011 Transportation
Appropriations Bill
 Contains
the same exemption as
the FY 2010 Appropriations law
 Language sponsored by
Transportation Appropriations
Committee Chairman Patty
Murray
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