Management & Operations

Airport ground transportation business drops up to 80% after Sept. 11

Posted on February 1, 2002

Business for ground transportation operators dropped between 20% and 80% in the two weeks following Sept. 11 and the air travel slowdown, according to a survey by the Airport Ground Transportation Association (AGTA). Seventy-three percent (29 of 40) surveyed said they would not be able to continue operating if business persisted at the same levels. Fifteen percent of respondents laid off more than half of their drivers in September to cut costs. Many companies also reduced employees’ hours, reduced runs and downsized or parked fleets. “Our general finding was that companies serving general tourist markets were off typically about the same percentage that airports were off. But companies that service high-end business travelers — like private car services — were off between 40% and 50% during this period,” said Dr. Ray Mundy, executive director of the AGTA. Subsequent surveys by the AGTA showed that though ground transportation business is not as dire as it was in September and October, the industry is still hard put to recover, especially as business travel goes through a period of transformation. “We’re experiencing a change in traveling by the American business industry,” said Mundy. “Major corporations have cut back heavily, made layoffs and completely abandoned all but essential travel, decreasing travel budgets by as much as 80%.” Marc Kaplan of Catalina Limo & Transportation Service, which services Tucson International Airport in Arizona, said business has come back considerably but is very different. Ninety-five percent of Catalina’s business is convention-related, and it has been hurt by the changing habits of business travelers. “There are fewer groups coming in, and they stay less time and definitely don’t spend as much money,” he said. Survey results also showed that 95% of respondents felt some form of government aid was appropriate, and many operators have already applied for available assistance. Catalina applied for and received the Small Business Administration Economic Injury Disaster Loan (EIDL) the week after Sept. 11. The AGTA conducted these business assessment surveys to inform participants on how companies around the country were hit by the crisis, and how they are handling the decrease in airport traffic. The data will also be distributed to government agencies in an effort to encourage legislation, aid and financial relief on behalf of operators.

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

More News

Port Authority CEO making review of fare enforcement policy a priority

The proposed policy would use armed policy officers to enforce fare payment.

Chicago RTA approves 5-year 'Invest in Transit' strategic plan

New regional plan sets a bold, yet practical, vision for “public transit as the core of the region’s robust transportation mobility network.”

TriMet Board names single finalist in GM search

Doug Kelsey joined the agency in 2015 and quickly improved the overall on-time performance of the transit system.

UTA's free-fare day adds 29K riders

The agency said the single-day ridership on FrontRunner commuter trains was up by 66% for a total of 30,016 boardings, while ridership on the TRAX light rail was up by 32%, for a total of 79,825 boardings.

Capital Metro selects new President/CEO

Randy Clarke has served as the VP, operations and member services, at the American Public Transportation Association since April 2016.

See More News

Post a Comment

Post Comment

Comments (0)

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

Schoolbus Fleet

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

LCT Magazine

Global Resource For Limousine and Bus Transportation

Please sign in or register to .    Close