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Operator Profile: Phil Khalil, Action Limousine Service (Houston, Tex.)

Posted on February 1, 1997 by LCT Staff - Also by this author

In Business: 8 years

Fleet: 6 stretches, 7 sedans, 1 van, and 1 minicoach

Number of Chauffeurs: 15 full-time and 15 part-time

Benefits Offered to Full-Time Employees: “Action Limousines has developed a ‘partnership’-based incentive program called ‘Total Incentive Program’ (TIP). The program allows all employees to share in the responsibilities and rewards of helping the company grow and profit. TIP designates each limousine as a profit center with company overhead costs shared evenly across the fleet. The whole company tracks sales and expenses to help everyone profit.”

Keys for Success: “When I initially started the company, the timing was very good. There were only 12 other limousine companies in the Houston area. Additionally, we have excellent control over dispatching and other resources. Action Limousine has very low overhead, low rent, and shared costs with chauffeurs. Finally, our rates and equipment are very competitive.”

Chauffeur management: “Chauffeurs are initially given a one-week orientation session so they can familiarize themselves with the chauffeur training manual. They then undergo on-the-job training for 30 days. They are given a final evaluation to determine if they meet the company’s job description standards.”

Phil Forges a New Path: “The company ‘right-sized’ in May of 1995 and as a result increased profits by 200 percent. Bold initiatives were introduced so that business could be conducted with a smaller staff that utilized technology with increased frequency. Training costs were eliminated and we hired either former associates or higher quality associates to streamline our operators. A financing strategy was implemented that allows us to upgrade our fleet every two years. Older vehicles are remarketed eliminating excessive maintenance costs.”

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