By David Hubbard

CH Bus Sales will put the 30-ft Temsa TS 30 on exhibition during UMA EXPO 2012, Long Beach, CA.

The Temsa bus and motorcoach brands belong to Temsa Global and runs in more than 40 markets worldwide including Europe, North Africa and the Middle East. The company has bus and coach production plants in Adana, Turkey and Cairo, Egypt, to offer myriad models that accommodate various transportation modes and the many needs of each regional market.

Now with the only 35-and 30-foot monocoque design motorcoaches available to North American operators, CH Bus Sales, Faribault, MN, the exclusive Temsa distributor in the U.S, will showcase the 30-ft TS30 model this month during UMA Expo 2012 in Long Beach, CA.

“This 30-foot coach length marks a significant addition to the small bus market in North America,” says CH Bus Sales President and CEO Robert Foley. “Operators are excited by the fact that it is an upscale option that is not body on chassis. Some applications of a cutaway are fine, but there are many instances where the use of a true motorcoach will perform much better.”
In addition to monocoque construction, the advantages of transporting up to 32 passengers in the smaller 30-foot coach, according to Foley, are the greater baggage capacity, the comfort of full-scale motorcoach seating and amenities and an onboard lavatory. Foley says bus and coach operators are trying to save costs without jeopardizing the quality they offer their customers.

“The shorter length Temsa models are becoming more attractive to operators who are not filling their 45-foot coaches on every trip,” says Foley. “These options save on the purchase price, insurance costs, mileage and lower tolls.”

Academy Bus Lines, Hoboken, NJ, Cardinal Bus, Middlebury, IN, and Pacific Coachways, Garden Grove, CA were some of the first North American operators to purchase the 35-ft coach Temsa introduced in 2008.  In the past quarter, Vandalia Lines, St. Louis, MO; Skyliner Tours, Astoria, NY; AFC Transportation, Houston, TX; Cavallo Bus, Springfield, MO; SFO Limo, San Francisco, CA; Rochester Bus Service, Hastings, MN; Jefferson Lines, Minneapolis, MN; and Bloomington Shuttle, Bloomington, IN, have put the Temsa TS35 into service.

Cardinal Bus operated three of the first units to arrive in the U.S. and has since traded these for three 2012 models equipped with EPA-compliant Cummins engines.

Dan Shoup, president and CEO of family-owned Cardinal Bus, says the 35-foot TS35 is a perfect fit for the smaller athletic teams his company transports.

Robert Foley serves as president and CEO, CH Bus Sales, Faribault, MN.

“We typically carry teams of 15 to 30 students for these smaller division schools,” he says. “We feel better and the clients feel better about them riding in a coach that is full, and the schools are far more confident with the Temsa coaches on longer trips.”

CH Bus Sales solidifies operation
Foley says the Temsa U.S. sales organization is in place and represents a wealth of industry experience.
Executive Vice President, Duane Geiger, heads the national sales team of Tim Vaught and Larry Williams in Texas and the South; Tony Mongiovi, New Jersey and the Northeast; Randy Angell, Midwest; and Randy Kolesar, Pacific and Western region. This group averages 20 years of experience in the motorcoach industry. The company reports it will add an account executive in the Southeast later in the spring.

“This team will wear several hats, but they enjoy the challenge and have the experience,” says Foley. “A lot has come together in the last four months.”

CH Bus Sales has opened a service facility in Orlando, FL, which has a consistent port pickup and customer delivery routine in place, in addition to performing outside service work for operators.

Duane Geiger serves as executive vice president, sales and service, CH Bus Sales, Faribault, MN.

“We currently have two established parts warehouses in Las Vegas and Orlando. We also have a solid warranty administration and after sales support team headed by Marvin Borntrager, who has 28 years of experience in the motor coach industry.  In addition to the two locations in Las Vegas and Orlando, we are assembling a reliable technical support network across the country” says Foley.

Foley says the service support growth begins with a collaborative effort with Creative Bus Sales, Chino, CA, which will add support in Chino, CA, Hayward, CA, Sacramento, CA, Elkhart, IN, Phoenix, AZ, Albuquerque, NM and Atlantic Beach, FL.  CH Bus Sales also has service arrangements with David Frank in the Texas area, C&J’s Bus Repair Service, Minneapolis, MN, and Perfect Body and Motor Coach Solutions in the Northeast. “Our plan is to have support in every major city in the U.S. and eventually in Canada,” says Foley. “We recently established our product research and development committee, which Tim Vaught leads. The committee, which includes operators and Temsa personnel, is reviewing our TS35 and TS30 models, along with our U.S. prototype of the 45-ft coach which we will introduce to North America this time next year.” BR

By David Hubbard

Daimler Setra first introduced the Setra TopClass S 471 to U.S. coach companies in 2003. Now the all-new 45-foot Setra ComfortClass S 407 unveiled one year ago by Daimler Buses North America, Greensboro, SC, has joined its sibling to offer operators a competitive choice in the Setra line, and one that is more suitable for commuter and line-haul service.
DATTCO, New Britain, CT, and the Martz Group, Wilkes Barre, PA, are the first U.S. coach companies to put the new model it into service.
While the new coach differs only slightly from the S 417, the development process entailed intensive operator surveys, in which American operators expressed very specific preferences and requirements that ultimately influenced the styling that distinguishes the S 407 from its sibling.
Martz Group CEO Craig Smith worked with Daimler Setra during the development of the S 407, advising the engineers on the functions and features that his company felt would best suit a coach dedicated to scheduled service operations. First of all, he told Daimler, it would need to be less expensive than the luxury charter S 417 without compromising the overall quality of the Setra brand.
Martz test drove the S 407 prototype for a 10-day trial period in March, surveying drivers, technicians, cleaners and commuter passengers and recommended several significant changes, which Setra accommodated. They included larger baggage bays with easier access, the lower-mounted rearview mirror system and the American-made energy absorbing rubber safety bumpers (ESAB) front and rear.
The front bumper folds down to allow access to the stowage compartment for the spare wheel. Setra says this new EASB system can resist a 5-mph impact without any damage.
Originally available only in black, Setra is now working to color code the ESAB as an option to match the customer’s paint scheme.
Satisfied with the product, Martz took delivery of seven ComfortClass S 407s in November.  The company opted for the 416 hp Mercedes-Benz OM 471 engine and automated 12-speed ZF-AS Tronic transmission in which the stick shift situated to the right of the driver. The company says some drivers prefer this configuration, as it does not interfere with the direct-connect cell phone apparatus.
“We assigned the new coaches to our senior drivers for the daily runs to New York City,” says Martz general manager, Bob Chepalonis. “They are proud to drive them and like the way they handle, particularly the tight turning radius.”
From northeast Pennsylvania, the Martz fleet turns 59 daily trips into New York City, two into Philadelphia and one into Atlantic City, NJ.
“We need a very dependable vehicle for this heavy-duty use of a coach,” says Martz director of maintenance, George Willis. “At the same time, it has to be as nice as we can make it for our customers.”
Chepalonis says the passengers on these runs are extreme commuters who ride the coaches on a daily basis and have a keen sense for what they like in their bus. For example, he says the upgraded wood grain flooring was not lost on this group who are on the coach for more than an hour each way throughout the week.
“Wi-Fi is a must on all our coaches, but the S 407s are the first with 110 power outlets at each seat,” he says. “Our commuter passengers have also commented on the additional legroom and the overhead parcel racks that lend a more spacious feeling in the cabin.”
DATTCO features Setra TopClass S 417s in its Experience Fleet for luxury charters. High-end features include leather seating for 40 passengers, glass roof and myriad top end amenities.
The company also operates and manages several routes for Megabus.com in the Northeast Corridor, running its own commuter coaches outfitted with the familiar blue graphics. Already familiar with the Setra brand, DATTCO was interested in the S 407 for its commuter capabilities and tested it on a dedicated route over the summer.
While not personally involved in the development phase of the S 407, DATTCO President Don DeVivo says he had read about the S 407 in BUSRide and saw the coach unveiled at UMA Expo in Tampa, FL, and then began talking to a Setra sales representative.
“For starters we put one S 407 directly into service for Megabus,” says DeVivo. “We wanted to see how it actually performed in our operation. There is nothing like a line run to give a new coach a thorough shakedown.”
The company took delivery of a second unit in September, becoming the first U.S. operator to purchase the new Setra model. The DATTCO coaches feature the Detroit Diesel and Allison WTB 500 automatic transmission.
“Setra has always been a nice ride, and our drivers enjoy the way they handle,” says DeVivo. “This new model has the same curb appeal and lends a definite buzz to the commuter experience. Now we’ll just have to see how it holds up in the daily grind running up to 500 miles a day.”
He says the coaches are meeting the test so far, but that he is reserving comment until they meet the test of 100,000 miles.  BR

The Go Seat from Freedman is a new choice for small and mid-size buses.

Freedman Seating, Chicago, IL, the family-owned seating manufacturing company for bus and truck markets, which Hyman Freedman founded over 100 years ago will introduce more new products and options in 2012 than any time in its 119-year history.
For openers, Freedman unveiled its new GO Seat for small and mid-size buses in September at BusCon in Chicago, IL.
The Freedman GO Seat is a modular design that allows preferential customizing. The lock-n-GO cushions allow replacement of the seat and back cushions in a matter of seconds, and the company says most components and accessories install easily after delivery.
“The GO Seat will be available Q1 2012,” says Dan Cohen, Freeman vice president, sales. “This new product meets all applicable federal seat belt standards for two- or three-point seatbelt systems.”
Freedman recently added a new online feature to its web site, Design Your Seat.
“Operators can now view any of Freedman’s 100-plus in-stock fabrics and vinyls on three different seat models without having to imagine how a seating configuration will look in their vehicles,” says Cohen. “All they have to do is click and view.”

The Gemini is the new product of 4ONE, a joint venture between Freedman and USSC.

Design Your Seat permits customers to experiment with a variety of insert and trim materials as well as cloth and vinyl combinations. Once a combination is chosen, the customer can save and print the design for future reference.
Because more riders and operators have grown more concerned about germs and cleanliness, Freedman is also introducing Sanitized® Anti-Microbial grab rails, which the company says are the first anti-microbial grab rails available to the transit industry. Cohen says with the active ingredients molded into the material Sanitized® grab rails provide protection for the life of the bus.
“The protection will not wear off or diminish over time,” he says. “Freedman will offer Sanitized® grab rails on its 3PT seats, Feather Weight seats, CitiSeats and 4ONE Aries and Gemini seats.”

4ONE and the Gemini
4ONE is the name of the 50-50 joint venture between Freedman Seating and USSC Group, Exton, PA, to produce passenger seats for the heavy-and-medium-duty transit and bus and motorcoach markets. Founded in 1986, USSC Group designs and markets seating for myriad transportation markets and entered the bus seat market only in 2000.

The plastic back shell meets head impact criteria (HIC) requirements and is available in a variety of textures.

4ONE unveiled its new collaborative product, the Gemini, in October at APTA Expo in New Orleans. According to USSC Group President Rick Klotz, this seat is the lightest transit seat made in North America. Using the latest pressure mapping technology, the company says it was able make the Gemini incredibly comfortable.
Washington, D.C. Metro Area Transit Authority (WMATA) will equip 26 new Orion buses with the Gemini, scheduled for delivery later this year.
Klotz says WMATA is the first transit property to get the Gemini. Each of the new units will also feature two Q’Straint Q’Pod wheel chair restraint systems with VPRO II belts and, as well as the optional Sanitized® grab rails.
Available in aluminum, stainless or painted carbon steel, the complete ADA compliant mounting package includes pedestals and cantilevers, transverse and longitudinal seats or transverse and longitudinal flip-up seats.
The plastic back shell meets head impact criteria (HIC) requirements and is available in a variety of textures. BR

Joseph Anderson recently began his 37th year of employment with Peter Pan Bus Lines, Springfield, MA.

Joseph Anderson, a longtime driver for Peter Pan Bus Lines, Springfield, MA, who recently began his 37th year of employment with the company, achieved three million miles of accident-free driving. Three million miles translates to at least 36 consecutive years of driving without an accident; or the equivalent of 120 times around the world, and 12.6 trips to the moon without an accident.

The company honored Anderson at its annual S.T.A.R. Awards in April. He will also earn a salute in an upcoming luncheon by his family, friends and co-workers and receive a proclamation from the Commonwealth of Massachusetts, commending him for this distinction; Peter Pan will unveil a new coach with a special bus wrap to honor his driving record to attest to the public Anderson’s accomplishment — and Anderson earns his place in the 2011 BUSRide Safe Driver Hall of Fame, which will be announced in December.

Anderson is the fourth Peter Pan motorcoach operator to reach this milestone, sharing this distinction with Edward Hope, Robert Guistimbelli, and his brother, Everett Anderson, who completed his own three million miles of safe driving in 2008.  The Andersons are believed to be the only brothers to have achieved this mark. Both are still actively employed as motorcoach operators for Peter Pan in Springfield.

Peter Pan is the only company in New England able to boast of any three million mile drivers in its employ, never mind four.

The late Peter Pan Chairman, Peter L. Picknelly hired Anderson in 1974. The native of Alabama moved to Springfield in 1959.  Mr. Anderson after honorable service in the Army.  During his tenure with the company, he has received its highest honor, the Peter C. Picknelly Founder’s Award for excellence.

“Joe Anderson is one of the best of the best,” says Peter Pan President Peter A. Picknelly. “As one of our consistently most responsible, respected and dedicated drivers, he has received every award the company gives to our drivers.” BR

By Peter R. Cohen

For bus and motorcoach companies, insurance coverage is more readily available in this softer market.

Several years ago when the robust economy was riding high and investors were raking in money too fast to count, many investors lost sight of reality. All too many held the common belief that those healthy returns would continue indefinitely. Consequently, the abrupt reversal of the trend caught many investors totally unaware.

Because the reasons for their significant return on investment seemed viable, and encouraged people to invest further under the assumption that those returns would continue unabated regardless of economic conditions, their losses came as a shock.  These individuals became complacent and completely lost sight of the familiar axiom: when something appears to good to be true, generally it is.

The same holds true for bus and motorcoach companies dealing with the current insurance climate. Coverage is more readily available in this softer market. Underwriters are more amenable to negotiation, premiums are either stable or falling, and new players seem to be entering the marketplace monthly.

Whereas in a hard market, coverage is more difficult to place, lower limits of liability are available, premiums are high and certain coverages might have sub limits — or be unavailable at any price.

A multitude of factors influence market conditions, among them economic downturns, catastrophic world events, industry capacity, industry claim reserves and supply and demand.

Risk management
Risk management encompasses myriad factors and components. With CSA 2010 now in place, regulatory compliance becomes even more relevant and requires much more attention to all federal regulations — an important component in risk evaluation, along with vehicle maintenance, hiring procedures, training protocols and claim prevention.

In evaluating a motorcoach account for insurance purposes regardless of market conditions, the common denominators are always claims activity, geographical location, driver quality as well as the nature and scope of the company operations.

As these soft and hard cycles occur the most important point to remember is they never last. It is essential to continue practicing good risk management habits regardless of the current cycle.

Michelle Silvestro, assistant vice president and national marketing manager, National Interstate Insurance Company, Cleveland, OH, suggests taking a buyer beware approach during a soft cycle.

“While there is plenty of capacity with several companies offering low premiums, operators must be certain the company they insure with is in stable financial condition and has made a long term commitment to the industry,” she says. “The ability to adjudicate and settle claims in an efficient and effective manner is paramount. Good claims handling ensures the account will be fairly judged.”

Silvestro says this, in fact, becomes the legacy of all motorcoach operators as an insurance carrier evaluates and considers their business.

There are numerous options to offset both soft and hard cycles in a roller coaster-like market. It becomes incumbent the broker think beyond traditional means to bring these options to the attention of the operator. Creativity and innovative thinking are the driving forces here.

“The liability deductible is the single best tool in managing cycle risk,” says Tim Delaney, executive vice president, Lancer Insurance Company, Long Beach, NY. “It allows an insured operator to assume risk based solely on what he knows about his own business — and the confidence he has in his ability to manage it.”

He says the operator can raise the deductible annually as premiums rise, or reduce it when prices stabilize or fall.

“He can soften the blow substantially by keeping the insurer out of day to day claims,” says Delaney. “With all of the variables that affect the long term viability of a motorcoach operation — driver shortages, training and operational issues, compliance related items— nothing can cause the failure of a good and well run company faster than the violent price swings that occur regularly with insurance expense, especially if complacency has become the rule rather than the exception.”

Informed broker

Choosing an informed insurance broker, one familiar with the nuances of the motor coach industry, is essential. Much like a corporate attorney and accountant, the insurance broker must meld into the management team and serve as a resource to both assist and advise. A competent broker is proactive and knows how to navigate the insurance landscape. He does not allow the client to compromise the commitment to run the safest operation possible regardless of the market cycle and economic climate.

The tendency to lower standards during a soft cycle because insurance costs become less significant is not a formula that assures long-term viability. An informed and involved insurance broker will never let the client lose sight of this all important maxim.

A new entrant into the insurance arena may have little idea about the risk that he assumes when he provides a $5 million limit on each and every piece of equipment he insures.

Not until policy limit claims occur do the eyes open and those new entrants realizes just what kind of exposure they have assumed. It can take a few years for these significant claims to mature, and when they do it is frequently too late.

The highway is littered with the carcasses of many insurance carriers who ventured into these shark infested waters only to realize too late what liability exposures they had become responsible for and the accompanying financial devastation.

The highway is equally littered with those operators who gave up the stability of a long term insurance relationship with their carrier just to save a few dollars in the short term. Many of those operators find themselves having to pick up the pieces as a result of that decision. Or even worse, having to deal with a state guarantee fund to step up and provide the protection that they had paid for because their carrier is no longer financially viable.

States create a guarantee fund to fulfill the financial obligations of insurers declared insolvent or who have incurred some sort of financial calamity.

The survivors are those who operate ahead of the curve and demonstrate the vision and foresight to practice good risk management regardless of insurance marketplace conditions.
Simply put, practicing good habits should occur every day, not just when insurance costs begin to escalate.

Peter R. Cohen serves as vice president and director of marketing for Capacity Coverage Company, Mahwah, NJ, one of the largest providers of insurance to the bus and motorcoach industry. Contact Cohen at pcohen@capcoverage.com.

Since ignition and liftoff two and a half years ago, word from Motorcoach Council mission control is the first stage is compete with the grassroots effort Todd Holland has diligently spearheaded. With the message firmly positioned, the second stage has fired and the next sequence of events is in motion.

Holland says the effort in this startup phase was simply to find the means to be as effective as possible with the resources at hand.

Before anything toward this end could happen, the Council had to take its own first steps to define and develop the concept, sell it to motorcoach industry and attract the necessary financial backing.

“We started this initiative with little funds but a lot of motorcoaches,” he says. “The idea to begin by wrapping our message on our own coaches was the most viable solution.”

Value and potential

Taking a moment to reflect on his ride in launching the Motorcoach Council, Holland says the value and potential of this mission is only as strong as what comes next.

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Not to worry. As he steps aside for Brian Annett, Annett Bus Lines, Sebring, FL, to take his seat as council chairman and Heather Horton to step up as executive director, he says it is important to know the current Get Motorcoachified bus wrap campaign was not the end goal, but rather the initial thrust to get as many operators as possible on board and participating.

“Our progress has been steady, but the Motorcoach Council is still in its infancy,” says Holland. “Our goal was to stay out there, talk to everyone and try to determine if our industry truly needed and wanted this initiative to create greater public awareness for what we do.”

Finelight Interactive developed the basic marketing concept with flexibility to allow variations on the theme, leaving room for the startup idea to grow legs as the industry has engaged in the mission, operator by operator, vendor by vendor.

Support of the core message

With 90 Founding Partners in support of the core message, the Council is poised to take its next steps to put it before the public. Coach operators are even chiming in with ideas of their own. One suggestion for a new slogan read, You text, we drive.

According to Holland, onlookers are beginning to get what it means to Get Motorcoachified. He says operators report calls and questions coming in from people reading the slogans as the wrapped coaches roll by.

“This early response is exciting,” says Holland. “It shows that people are behind us and finding ways for the program to evolve.”

In two and a half years questions about the Motorcoach Council have grown from what and why to how and what if; doing less explaining of what it is and more to help operators take the message to their customers. Congratulations go to founding partner Callen Hotard, Calco Travel, New Orleans, LA, for his effort to promote his business and motorcoaches in general through traditional media streams such as stand-alone billboards and cable television; and to Motor Coach Industries and ABC Companies for their development of donation programs based on parts purchases to support the cause.

“Everyone in the motorcoach industry agrees we need media exposure and public awareness more than ever,” says Holland. “We want people to know the benefits of modern coach service before they step onboard for the first time.”

Build stronger alliances

Pamela Wolf will be working closely with Horton in an official capacity to build stronger alliances with business entities that benefit from motorcoach tours and charters.

While the council purports the necessity of banding together to raise awareness by the traveling public through a singular message, and with the concept taking hold, still the Council will never realize its long-term vision without the creative participation in local markets.

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Holland says the Motorcoach Council exists to supplement and fortify, not substitute or replace individual efforts to market and promote. With the available tools from the Council, such as soon to come public service announcements, motorcoach companies can certainly move the process along by engaging in proactive public relations of their own to educate the traveling public about the advantages and conveniences of motorcoach transportation. Maybe this is the third-stage rocket that takes the mission well into the future.

Once everyone is convincingly Motorcoachified, my hope is for the slogan to revert back to the original hearty cheer, Go Coach!

Motorcoach financers remind operators to take time to reflect the hard times they have just been through and understand the game has changed. They say money is available, but the path ahead demands sound basic business with accountability like they have never seen. Credit processes are much more stringent than before.

Eric Coolbaugh, a principal of Advantage Funding, Lake Success, NY, says in the past 20 years, he has never seen such de-leveraging of commercial and consumer credit because of previous lax credit standards.

“The U.S. economy has seemingly prospered due to Americans’ ability to buy a home and tap into what they loosely considered endless equity. As a result of this feeling of prosperity, Americans spent more than they could afford on everything from automobiles to travel to coaches,” says Coolbaugh. “Unfortunately for most coach operators, the home equity is gone and there are hard choices to make.”

Considering the present economic climate, he says he has not seen such de-leveraging because of lax credit standards since early 2000.

Leases and loans

Advantage Funding, a subsidiary of Marubeni America Corp., the multinational Japanese trading conglomerate, specializes in direct and indirect niche transportation finance and leasing. Their target transactions are leases and loans for new and used commercial coaches, minibuses, school buses, paratransit vans, ambulances and limousines. They also establish captive finance programs for commercial transportation equipment manufacturers. With the exception of schools buses, these businesses have reported steady decreases in units sold for several years, according to Coolbaugh.

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“Operators without other areas of diversification have a tough time remaining profitable,” he says. “The retail limousine operator was practically annihilated as consumers cut any and all discretionary spending. All this has resulted in high delinquency lenders as well as increased repossessed inventory.”

With the public scaling back coach trips throughout the United States, Coolbaugh warns operators to be conservative in how they manage their operations.

Advantage Funding also reports OEM sales for new equipment are down, with many operators electing to maintain their current fleets rather than rather than replace or add equipment. According to Coolbaugh, they are running their vehicles longer they have historically because of the economic uncertainty.

Unable to pay on time

Coolbaugh says he sees customers with strong businesses who have never before paid late experiencing short-term cash flow disruptions and unable to pay on time. In certain circumstances a number of those operators without strong core operations have had to close their doors.

“In today’s finance market, banks are as skittish as they have ever been,” he says. “Some are only lending to the top 5 per cent of fleet operators and turning down most others. Advantage Funding continues to keep a practical lending standard, but we are seeing leverage and high debt loads on almost all applications that cross our desk. In the past many of these applications might have been structured for approval through increased down payment, but in today’s volatile market we almost always have to turn them down.”

Advantage Funding says customers applying for credit today need to pay keen attention to their submittal. Tax returns and financial statements (preferably audited) must be included as well as references from other banks they are paying in a timely manner. Most financial institutions will be asking more questions and scouring data for any signs of high debt load or inability to pay.

The highest standards

Lenders will review personal credit and hold it to the highest standards, so being up front about credit problems when submitting an application is essential. A brief summary detailing business history, future plans and personal experience is key, according to Coolbaugh.

Looking forward Advantage Funding is optimistic about coach financing but says it fully understands this is not the end of this de-leveraging process.

“We think there are still unforeseen bumps in the road and mountains to climb in 2010,” says Coolbaugh. “Eventually, the U.S. economy will be stronger and those coach operators who understand credit and cash flow will be well positioned for long term growth when the economy improves.”

The ABCs of credit financing

Shore Funding Ltd., Little Silver, NJ, provides equipment financing to motorcoach and school bus operators through conventional loans and TRAC leases for new and used equipment.

Company president Joe DiAngelis thinks much of today’s financial woes harken back to the recession of 2000 and the aftermath of 9/11. He says this was about the time the country began embarking on the path of easier credit in an effort jumpstart the economy. By 2009 the scene had shifted significantly due to liquidity problems in the banks.
“No question we have been through a tough couple of years,” says DiAngelis.

“Coach operators needing to replenish their fleets came up to a wall only a few could walk over. Many more had to really strain to climb over, while others did not make it over that wall whatsoever.”

DiAngelis says his company typically sees credit applicants in three tiers — A, B and C.

The As are top shelf operators who have been in business for at least five years and have maintained an excellent cash flow. They come to the table ready to supply strong financials and accurate balance sheets.

The Bs are similar to As but generally not quite as strong financially. Still they signal good business management and keep their finances under control.

DiAngelis says C-grade applicants can be good operators who have hit a rough patch along the way. He says while they will still pay a higher rate and take more time, they generally have what it takes to better their position in terms of financing. “They will have a story to how it happened,” he says. “Again, we just need an explanation. If they ran into trouble through the previous year or went through a single catastrophic event that set them back, we look for signs that show they are still headed in the right direction, such as positive cash flow and balance sheets that are intact.”

DiAngelis says as a general rule his company will likely not approve an operator who shows back-to-back yearly losses. In some situations where he sees red flags, DiAngelis says an approved C-grade applicant may still require additional collateral.

“We will look at the total fleet, how many vehicles are paid off, those still owing and the overall value,” he says. “That is how we determine hidden equity that may help with the deal.”

DiAngelis says the conditions of 2009 bring great scrutiny, and anyone financially derelict and unaccountable will have a tough row to hoe.

“Five years ago we never asked for a debt schedule, when a debt is coming off, the monthly payments, and how capable the client was in servicing new debt,” he says. “In today’s new world, these considerations are paramount.”

Insurers do what they can

According to Bill Love, president of Euclid Insurance Agencies, Melbourne, FL, the criteria and requirements for motorcoach insurance is pretty cut and dried.

“Operators know the limits to meet sand stay in business,” says Love. “There is no give and take with insurance compliance.”

But from where he sits, Love says he too has seen scathing ancillary effects of the economy over the past year. He reports approximately 9 percent of his client base closed the doors and went out of business, where in a normal economy that number is around 1 percent for a variety of reasons.

“As insurers, we have done our best to hold rates down,” he says. “The businesses that survived downsized significantly to insure fewer vehicles.”

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According to Love the insurance market is still offering operators reasonable rates. They are not seeing drops, but neither are rates increasing. He says insurance rates are settling as the economy improves little by little, giving everyone an opportunity to shake out and move forward.

Love advises operators to plan wisely for 2010 and beyond. He sees it as learning to do more with less and making realistic projections in line with present levels.

No way are teenagers on a band trip going to hang complacently on their assigned coach when one-fifth of the group is cruising in style aboard the double deck up ahead. 

“Everyone wants a turn on the double deck,” says J.D. Wilson, who opened Coastal Coaches, Panama City, FL, in September with his business partner Debbie Vanpay. “In this case the band director usually has to revise the plan and rotate the groups through the double deck each day of the trip.”

Wilson says this situation occurs frequently when he sends his new Van Hool TD 925 out on high school charters.

It gets a lot of attention

“This coach is a whole different animal than what most people are used to seeing and it gets a lot of attention for our young company,” says Wilson. “It is working out about like we thought. On a recent shuttle to a local arts festival, we booked eight more trips from band directors stopping by just to take a look inside our double deck coach.”

It has been three years since ABC Companies, Faribault, MN, and the Belgium bus builder Van Hool, introduced the TD925 in North America.

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Adapted for the U.S. market, the ADA-compliant two-door vehicle stands 13-feet high — 18 inches taller than the standard motorcoach with seating for up to 81 passengers. Standard features include cameras, seatbelts and escape hatches, onboard restroom, rear stairs and luggage area.

The first TD925 revamped for American operators went to Coach USA in 2007 to further enhance its Megabus brand in the United States.

A competitive edge

John Oakman says customers continue to choose Megabus because of its double deck coaches, which he says most decidedly gives the company a competitive edge. Amenities include new double-deck buses with free Wi-Fi, reclining seats and power outlets.

“Our acquisition of the TD925s was an enormous project when we initiated this service,” he says. “There is always room for expansion and we certainly see more of these double deck coaches for Megabus in the future.”

Oakman says Megabus has a dedicated fleet of 15 TD925s specially built, domiciled and registered in Canada to operate on the Toronto-Montreal run with seven making the Montreal to New York City commute.

Megabus.com recently launched a program to stimulate travel in 2010 by offering 100,000 free seats through March to lucky customers who book early, meaning many customers will most likely get the bonus of the double deck experience.

Today coach operators across the country putting this new generation low floor double deck coach into service for every reason from economy and increased passenger capacity. They say the response from their customers has been overwhelming in their reaction to the sheer visual impact of the vehicle, and thrilling views from the upper level, not to mention its overall ease on the environment.

Refine the specifications

DATTCO executives traveled to the Van Hool plant in Belgium to refine the specifications and features they wanted for their extensive order of new coaches that included two ADA-compliant TD925 double decks, and took note of the creativity ABC Companies and Van Hool applied in outfitting its 10 TD925s for line-run to luxury tours. The company runs seven to nine double decks for Megabus on its Boston to New York City run and maintains three for its own charters.

DATTCO, like every company running the TD925, has discovered the most obvious advantage of this coach — the capability to fit most charter groups onto one coach instead of two.

“The TD925 is especially attractive for student groups,” says DATTCO President Don DeVivo. “Where the typical class size is 35 students, schools are discovering the convenience and economy of chartering the one double deck instead of two partially filled 56-seat coaches. The students, of course, find a lot of entertainment value in the TD925s.”

Coach industry veteran Lanny Rogers, owner of First Class Tours, Houston, TX, with his two sons, Lanny Jr. and Jeff, is no stranger to innovative vehicles. Before his launch of First Class Tours in 1998, he operated Gray Line of Houston with a fleet of 110 coaches, and at one time experimented with the rare Prevost 560 articulated coach.

He intended to operate First Class Tours with no more than three coaches just to stay busy during retirement. Today the operation maintains a fleet of 30 Prevost H3-45s and XLs, as well as the two new TD925 Van Hool double decks.

“Our primary business was a casino run into southwest Louisiana,” says Rogers. “As business grew and our fleet expanded, we realized we could use a higher capacity vehicle. We were immediately drawn to the TD925 when we saw it for the first time at the UMA Expo in Orlando, FL.”

Even at that, Rogers says he has always specified seating on his coaches for fewer passengers to allow more room and comfort. Instead of the standard 82-seat configuration, Rogers went with 69 spaces for his two double decks.

“The extra legroom just makes a three-hour ride to the casinos a nicer part of the experience,” he says. “We also had ABC Companies install 12 smaller television monitors throughout.”

High praise for the ride

Rogers says in addition to the casino trips, First Class Tours also has sent its TD925 on charters to Orlando, Atlanta and Las Vegas. While he has high praise for the ride of the coach, his only concern for longer trips is its limited luggage space.

Dennis Copyak, general manager for LeBus, Salt Lake City, UT, says the company once owned a 1985 Neoplan double deck, purchased from a casino in Wendover, NV.

“We started our own casino run in 1998 with this bus,” says Copyak. “It became obsolete pretty fast, but it certainly primed our thinking about double deck coaches when we revisited the idea for the Van Hool TD925.”

LeBus purchased it primarily for the casino run, but Copyak says upon taking delivery New Year’s Eve 2008, he immediately booked its first trip as a charter to the Sugar Bowl in New Orleans, LA, as the result of positive television coverage from a local news station.

“Talk about a maiden voyage,” says Copyak. “We had to attach an additional luggage trailer behind the coach to accommodate our 73 passengers. The charter was for 40 and we sold the additional seats separately.”

Two coaches to do the work of four

Alexandre Agentes, a coach driver for nine years in Orlando, FL, launched Caravan Service Transportation in August 2009 after convincing his Brazilian investment partner to open a bus company. Starting with three pre-owned Van Hools, the investor needed only one look a TD925 on his next visit to make the purchase. Now Agentes is about to trade one of his T2100s to purchase one more double deck, which he says will allow two coaches to do the work of four.

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The fleet of Van Hools that now includes four TD925 double decks helped launch Sightline Tours, Vancouver, BC, Canada, last year. A division of Seattle-based motorcoach company MTR Western, the company sees the coaches as the complement to the spectacular and inviting surroundings in around Vancouver Island and Whistler, site of the 2010 Winter Olympic Games.

MTR president Darren Berg says the mission of the tour operation has been to offer an enhanced per capita sightseeing product comparable to the five-star level of service delivered on the cruise ships arriving and departing from Vancouver.
The twp most recent double decks feature glass rooftops and further refinements to the interior appointments.

GeoGenius is the signature amenity, the proprietary GPS-triggered audio/video tour information system Berg has developed for MTR Western. Historical and travel-related content presented on large flat screen monitors augment the tour itineraries with what are essentially mini-documentary features on the various sites and attractions.

In Glendale, AZ, Eugene Bronson, owner of Michelangelo Leasing and Divine Transportation, happened to be looking for something new and different when the TD925 came on market. He says though he did take a wait and see approach at first, the double deck Van Hool certainly had his attention.

His initial skepticism was for older passengers having aversions to climbing the stairs.

“I was mistaken on that point,” says Bronson. “Anyone who can climb the stairs just loves the views from the upper deck. Overall I would say we hit a home run with our TD925.”

Last year this column rang like a warning from Chicken Little, sounding the alarm for the inescapable recession coming down the pike and offering the good advice gleaned from industry leaders on how to brace for the year ahead.

The sky had fallen, or so it seemed, and everyone was trying to get focused on how to hang on and push back. The general tenor ranged from cautious optimism to abject terror as plans for bailouts and stimulus packages were set in motion and we all hunkered down.

One year later the word is the recession is over.

We are not completely out of the woods, but trusting this is the case, I checked in at random with a few coach operators to see how they fared; hoping to hear of a few bright moments amid the gloom. The end of the recession does not mean an automatic end to difficult times, but judging from the people I spoke with, the overall tone seems decidedly resilient.

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Doug Lumsden, owner of Monterey Film Tours, Monterey, CA, believes in many respects much good came from the economic downturn. He says the state of the economy actually prompted him to think about ways to be more efficient.

“When times are good, we do not give as much thought to how we might work a little leaner in our standard operations,” says Lumsden. “We started to work closer with our allies. We circled the wagons so to speak, and encouraged one another to better understand our individual products and services.”

Innovative group travel packages

As an example, Lumsden says he and other tour operators in his area started working closely with hotels and people in the hospitality industry to devise new and more innovative group travel packages, and to exchange and share advertising and co-op marketing opportunities.

“I think we just tend to think fat when times are good,” says Lumsden. “During the good times, we really need to function just as we would when times are lean.”
He says it is a matter of streamlining the business model and strengthening partnerships.

“This industry can get rather staid and slow to change,” he says. “In that respect this poor economic climate has put a match under our feet.”

Richard Lockard, owner of Lake Shore Motor Coach Lines, Provo, UT, says while he knew 2009 would be a rough year, he reported that considering business overall was in a downturn, the company weathered through better than expected.

“If the truth be known, we were still feeling the residual sticker shock from the fuel price crisis the year before,” says Lockard. “When fuel prices soared above five dollars a gallon in 2008, it woke everyone up.”

He says the previous year hurt much worse. When 2009 rolled around Lake Shore Motor Coach had been thinking for sometime how to be more creative. The fuel crisis had already changed the company mindset on how to make the necessary sacrifices to keep afloat and keep the buses running.

More proactive

H & L Charter Company, Rancho Cucamonga, CA, earned honors from the California Coach Association as its 2009 Operator of the Year. How the company responded to the recession provides a clue to why it received the award. Owner Elaine Fickett and Jodi Merritt, vice president, say their company also found ways to be more proactive under the pressure of a recession.

“We started attending regional trade shows we had not considered before, such as the Go West Summit, a western regional association of tour operators,” says Merritt. “When we started making a more concerted effort to find new clients, we started enjoying a few more bright spots in the otherwise dark economy.”

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Merritt says they developed an aggressive quote callback program and vowed to get better at follow-up. She says the callback program was something they had never done before and that they had become complacent in other areas when times were not as bad.

Fickett echoes industry sentiment when she says her company is definitely going to continue what they have learned even when the recession is a distant memory.

By David Hubbard

Even with the encouraging study two years ago, The Return of the Intercity Bus, by Joseph P. Schwieterman and his team at DePaul University that illuminated the first significant rebirth of intercity bus activity in more than 40 years, and even with Megabus and Greyhound Bolt delivering an updated perspective of coach service to the traveling public, the suggestion that further growth in regular scheduled service is a tall order — but one that stills deserves consideration.

It is essentially unreasonable in this day and age to think an affluent demographic will choose to ride a coach on trips more than a few hundred miles. But maybe with more enticement and enlightenment, operators could make a stronger case for more regional coach service. Schwieterman’s research stopped short of recognizing the independent operators serving smaller rural communities through federally subsidized grants. One program or another has been available for years. Section 5311(f) is the most current iteration.

With federal funds paying up to 80 percent of the costs, 5311(f) assistance provides funds to facilitate the coordination of rural transit connections between small transit operators and intercity bus carriers, and help cover costs to market rural intercity bus transportation services. 5311(f) capital assistance grants are available each year to motorcoach operators to purchase buses, vans, radios, wheelchair lifts, computers and other equipment necessary to maintain regularly scheduled transportation service to and from rural non-urban areas.

The grant also may go toward intercity bus shelters, joint-use stops, intermodal facilities and bus depots, as well as performing preventive maintenance.

Administered through state DOTs, 5311(f) money is available each year, though grant schedules and eligibility varies from state to state, each with its own application forms and processes. Interested operators should meet with their respective state DOT for grant schedules and proof of eligibility. Depending on the intended route service, the process may require coordinating with more than one state DOT.

Charter and tour services are not eligible for 5311(f) funding since they do not meet the definition of intercity service, nor provide operational support for intercity service. Similarly, commuter service that provides daily work trips within the local commuting area does not meet the definition of intercity service and is ineligible for this grant.

Using 5311(f) funding, Anchor Trailways and Tours, Nashville, TN, launched daily round-trip motorcoach service in July between Lawrenceburg and Nashville. The Tennessee Department of Transportation Multimodal Transportation Resource Division administers the $2.5 million federal grant to help the Anchor Trailways Runner provide transportation options to citizens in southern middle Tennessee who do not currently have access to daily scheduled transit routes to major cities.

The new ATRunner service connects to Metro Transit Agency buses from Lawrenceburg, Ethridge, Columbia, Spring Hill, Franklin and Nashville, and includes stops at the Clement Landport, the Greyhound station in downtown Nashville, as well as Nashville International Airport.

“A great many people along the route tell us this service is long overdue,” says Anchor Trailways founder John Stancil. “Now a wide range of travelers who rode the bygone greyhound service can enjoy renewed access on modern upgraded system.”

Minnesota-based Jefferson Lines has been such a participant for at least 25 years. Named for the Jefferson Highway, a dirt road from Winnipeg to New Orleans, regular scheduled service was its mission when the company launched 90 years ago, hinting at the types of programs to come. The third generation of the founding Zelle family now manages the Jefferson operation.

“Every state is different, but the thread of connection in these programs is their successful collaborations to make the rural connection, say Jefferson Lines president, Charles Zelle. “As more transportation entities discuss how to expand and connect transportation modes, I think many city transit agencies are actually discovering our participation is not taking any business away, and are more willing to engage in partnerships with private operators.”

He says the passengers are not the least bit concerned if it is a public or private entity taking them where they need to go. Zelle and veterans like him envision greater opportunities for coach operators willing to engage in regular scheduled service, but says they come with matching challenges.

“It is a very dynamic aspect of the coach industry,” says Zelle. “I think over time people are going to realize driving a private vehicle is not as convenient as it once was. Fuel costs, urban policies and environmental issues could begin to point the way to more regular scheduled coach service.”

It is safe to say this type of operation is not for the feint of heart. Establishing scheduled service routes is tedious work and tough to build the business to sustainable level. Most of those tenacious to maintain route service believe more opportunities exist, particularly with a refreshed image of motorcoach travel playing to the current economic climate, fuel prices and environmental concerns.

Fullington Trailways, Clearfield, PA, has been a grant participant since 1981, providing intercity bus service for much of central Pennsylvania, traveling to end point destinations in Pittsburgh, Wilkes-Barre and Harrisburg, PA; and Buffalo, NY, and intermodal connections to the rest of the country. Company vice president Milt Weisman would remind anyone considering such a move that federal subsidies such as 5311(f) is just that — a subsidy to routinely provide transportation, whether its for 56 passengers or only five or six.

“This type service takes a lot of careful research to see what is a true business opportunity,” he says. “Unfortunately, without the subsidy we probably wouldn’t be able to sustain the service that we are able to provide.”

Zelle, Weissman and other operators running rural service under 5311(f) agree the program is a worthy public-private partnership. He says if done right the funding accomplishes the goals of both sides, business opportunities for the independent operator and improved service from the Department of Transportation.

With more coaxing maybe a more coach-savvy public will encourage more operators to explore this niche.