New Game Day Shuttle Regulations Reduce Tax Burden In Favor of Competitive Pricing

August 14, 2008

For Immediate Release
Contact: Eron Shosteck
Phone: 202-218-7220

WASHINGTON -- The American Bus Association expresses support for the Federal Transit Administration’s Charter Bus (Service) Rules which move the cost burden of game day shuttle services off taxpayers and onto stadium owners and transported fans.

Initial charter regulations created by Congress, were in statute for 35 years and revisions made effective on May 1, 2008 instill enforcement of these rules. Past abuse of regulations has negatively impacted independent bus operators and in a few cases may have forced bus operators out of business. Enforcement deters public transit operators from exploiting taxpayer dollars to unfairly compete with private bus operators.

“Pricing by teams often raises concerns,” noted Peter Pantuso, President and CEO of the American Bus Association, “yet people should be made aware that the low prices charged by transit agencies were made possible through federal capital and operating subsides, in other words, taxpayer dollars. Allowing independent bus operators to serve this market opens the door to competitive pricing.”

Many responsible baseball and football team owners have already stepped away from the past illegal practice of using taxpayer subsidized transportation and are competitively bidding this service to thousands of independent bus companies across America.

The FTA initiated continued discussion on the issue the past year to ensure that public and private transportation organizations were fully understanding of the new requirements to use independent bus companies. The final negotiated rule, which was the result of an open and transparent process that included taxpayer subsidized transit agencies as well as the FTA and independent bus owners, finally enforces a law that has been on the books for 35 years. That new implementation of the law will ensure that consumers have access to fair market bus transportation that levels the playing field for every bus operator who wants to offer their services.

The American Bus Association is the trade organization of the intercity bus industry with more than 1000 motorcoach owner and tour company members in the United States and Canada. Its members operate charter, tour, regular route, airport express, special operations and contract services. Another 2,800 members are travel and tourism organizations and suppliers of bus products and services who work in partnership with the North American motorcoach industry.