Industry Research

ABA Points Out Private Motorcoaches Offer Better Value Than Amtrak

Posted on September 26, 2012

WASHINGTON, D.C. — American Bus Association President and CEO Peter Pantuso told members of the House Transportation and Infrastructure Committee on Sept. 20 that motorcoach transportation in the U.S. remains competitive against other modes despite Amtrak being partially supported by federal government funds.

“While the intercity bus industry must compete in the free market, its major intercity competition, including Amtrak, is heavily subsidized,” Pantuso said. “The American public is hungry for more transportation options. In a study released last week, the Natural Resources Defense Council found that three out of four Americans are frustrated with the lack of transportation options that forces them to drive more than they would prefer.

“As the subsidy gap between our industry and Amtrak continues to grow, bus operators will start to lose the price and time competition, not as a function of the free market, but because of government spending.”

Amtrak is not required to operate like a business covering both operational and capital costs like bus operators do, even on “profitable” corridors, Pantuso said.

“While this hurts competition in densely populated areas, it is a disaster for the industry and, more importantly, Americans living in more sparsely populated regions.”

At the hearing, Amtrak president Joe Boardman reported the subsidy per ticket is now 15% and dropping. Some members of the committee disputed those figures, responding that, on some routes, the subsidy is more than $300 per ticket.

Private motorcoach companies, which are recording strong year-to-year growth, and Amtrak have many areas of common interest, Pantuso said. He pledged that ABA members will continue to work with Amtrak on a variety of projects.

“In the end, it's all about moving passengers safely and comfortably to their destination," Pantuso said. “ABA wishes to thank members of the Committee — in particular, Chairman John Mica of Florida — for the opportunity to discuss important issues in the transportation industry with the members.”

Source: American Bus Association

View comments or post a comment on this story. (0 Comments)

More News

Did Trump Victory Bump Up Business Travel?

Any growth in late 2016 was a welcome surprise. Domestic business travel has a positive modest outlook because of more investment spending.

Small Businesses Most Optimistic Since 1980

The share of owners who say now is a good time to expand is three times the average during the recent expansion.

Business Travel Could Face Stiffer Challenges In 2017

Terrorism, Brexit, a China slowdown, rising oil prices, and immigration conflicts are weighing on the global travel market.

Corporate Travel Managers Reflect On Uncertain 2016

An annual report rounds-up the leading disruptions this year to the corporate travel sphere.

US Leisure Travel Growth Pace Slowing Into 2017

While it still leads the domestic market, the amount of forward-looking bookings and vacation intentions are lower.

See More News

Facebook Comments ()

Comments (0)

Post a Comment

Submit

Blogs

See More

See More

See More

See More

LCT Store

LCT Magazine - January 2017 $12.95 THE MONEY ISSUE COVER STORY: * Dashboard Helps Steer Company Finances * *



Connect

Experience the three annual industry events for networking for business, showcasing vehicles and products, and getting the tools for success.

Read About Your Region

What’s Happening Near You?
Click on any state to see the latest industry news and events in that region.

More From The World's Largest Fleet Publisher

Automotive Fleet

The Car and truck fleet and leasing management magazine

Business Fleet

managing 10-50 company vehicles

Fleet Financials

Executive vehicle management

Government Fleet

managing public sector vehicles & equipment

TruckingInfo.com

THE COMMERCIAL TRUCK INDUSTRY’S MOST IN-DEPTH INFORMATION SOURCE

Work Truck Magazine

The number 1 resource for vocational truck fleets

Metro Magazine

Serving the bus and passenger rail industries for more than a century

Schoolbus Fleet

Serving school transportation professionals in the U.S. and Canada

Please sign in or register to .    Close