METRO Magazine Logo
MenuMENU
SearchSEARCH

Private bus industry seeks improvements to charter bus rules

Charter operators have experienced problems with local public transit agencies luring away customers with discounted rates.

by By Janna Starcic, Senior Editor
February 1, 2005
3 min to read


The private bus industry is stepping up its fight against public bus systems that violate charter bus rules and is lobbying the federal government for clearer regulatory language and more flexible penalties that would be easier to implement and enforce. Last July, a coalition made up of the American Bus Association (ABA), United Motorcoach Association (UMA), American Transit Services Council and many other associations sent a letter to Capitol Hill containing proposed amendments to a Senate transportation bill that seemed to give transit systems more latitude to provide charter bus service in competition with private bus operators. “We have provisions in both the House and Senate bill that we think will go at least part way to alleviating some of these problems,” says Clyde Hart Jr., ABA’s vice president of government affairs. A list of demands
The coalition’s aims include clarification of the language of the existing rules. “One of the things we are looking for is to have the law changed so it says ‘the Secretary of Transportation shall enforce the rules,’ rather than may,” says Linda Darr, ABA’s vice president, policy and external affairs. “Shall and may have very different meanings in legislation.” Another amendment goal is to impose different penalty levels. Currently, the law includes a monetary penalty that requires the Federal Transit Administration (FTA) to withdraw all funding from the violator. “Unfortunately, the only penalty that exists today is all or nothing,” UMA President Victor Parra says. “That’s too severe for the level of violation. There is no in between.” Hart agrees, “It’s what I call the nuclear weapon that is never going to be used by the FTA.” The furthest the FTA has gone in terms of putting violators on notice is to issue a cease-and-desist order. The FTA “has not found it necessary to withdraw funding from a transit agency in order to obtain compliance,” says the FTA’s legal counsel. Transit agencies such as the Rochester (N.Y.) Genessee Regional Transportation Authority have ignored orders to cease-and-desist despite having been ordered to do so more than once, ABA’s Darr says. “I think part of the reason transit agencies don’t bother following procedures is because there is no real penalty and because of [their] constant search for money as a publicly funded agency.” Ongoing problems
Several years ago, the private bus industry brought the problem of unchecked charter rule violations to the attention of the U.S. Department of Transportation. “We saw unfair, unchecked competition from transit agencies that were eager for more money and stepping way outside of their bounds,” Darr says. Since that time, the FTA worked with the private bus industry to develop literature underscoring the charter rules, which was distributed to transit agencies and operators alike. “So we were off to a really good start, but I think what happened after that is politics intervened,” Darr says of the ongoing problem with penalizing violators. Despite attempts to control transit encroachment, the problem still exists. Williamsburg, Va-based Oleta Coachlines Inc. is one such operator that has had problems with transit competition. “[A regular customer] who had booked a trip to Charlottesville, N.C., called to tell us they no longer needed our services because they had found a very good rate from someone else,” says Howard Smith, Oleta’s founder and president. Smith found out that local transit operator Williamsburg (Va.) Area Transit (WAT) lured away his customer with a much lower rate. In order to keep the customer, Smith matched the offered rate and notified the WAT of its wrongdoing. After Smith attended meetings to speak out against the problem, WAT backed down. Smith adds, however, that another local public operation appears poised to create the same problems for Oleta. “It’s happening everywhere,” says UMA’s Parra. “Unfortunately, there is almost no accountability.” He says the private bus industry is deploying a different strategy to deal with this issue by going on the offensive.

Topics:Management
Subscribe to Our Newsletter

More Management

Cover photo for Transit Unplugged Episode 400
Managementby StaffMarch 6, 2026

Transit Unplugged Celebrates 400 Episodes

The special episode features an exclusive interview with Mark Miller, president of Constellation Software Inc. and executive chairman of the Volaris Group, who reflects on the podcast's early vision and the importance of creating a platform where transit leaders can share ideas and learn from one another.

Read More →
A recent generation New Flyer Electric Bus
Managementby StaffMarch 4, 2026

NFI Group Officially Opens New Flyer All-Canadian Build Facility in Winnipeg

The CAD facility enables NFI to complete full domestic production of heavy-duty transit vehicles, including zero-emission buses, in Winnipeg for the first time in 15 years.

Read More →
Photo of public transportation system with APTA logo.
Managementby StaffMarch 4, 2026

APTA: Surface Transportation Funding Delivers 5:1 Economic Return, Supports 41,400 Jobs per $1B

The findings provide clear evidence that sustained Federal investment in public transit and passenger rail delivers significant returns for workers, communities, taxpayers, and the U.S. economy, APTA officials said.

Read More →
Ad Loading...
A photo of rail tracks in Ottawa, Canada

Building a National Framework for Transit Safety and Consistency

On a recent episode of METROspectives, METRO Magazine’s Executive Editor Alex Roman sat down with Ana-Maria Tomlinson, Director of Strategic & Cross-Sector Programs at the CSA Group, to explore a bold initiative aimed at addressing those challenges: the development of a National Code for Transit and Passenger Rail Systems in Canada.

Read More →
Photo of World Cup soccer ball.
Managementby StaffMarch 3, 2026

FTA Invests $100M to Strengthen Transit for 2026 World Cup

The funding will ensure communities can expand transit options to meet increased demand for services around stadiums.

Read More →
ENC's John Obert
Managementby StaffMarch 3, 2026

ENC Names New VP of Transit Sales

John Obert previously served as regional sales manager for ENC since joining the company in June 2025.

Read More →
Ad Loading...
Disabled and senior passengers on a transit vehicle.
Managementby StaffMarch 3, 2026

New 2026 Plan Aims to Expand Transportation Access Across Virginia

Over the next four years during the Spanberger Administration, DRPT will use the plan to prioritize funding for human service transportation projects and programs that reduce barriers, expand access, and promote equitable mobility, said department officials.

Read More →
A blue and white graphic with text reading "Via Launches Mayors Council to Accelerate Transit Innovation."
Managementby StaffMarch 3, 2026

Via Launches Mayors Council to Accelerate Transit Innovation Nationwide

A new advisory group of current and former city leaders will collaborate on funding strategies, technology deployment, and best practices to modernize U.S. public transit systems.

Read More →
LIT Mentorship Program participants.
Managementby StaffMarch 2, 2026

Latinos In Transit Wraps Inaugural Navigate Mentorship Program,

The LIT Navigate Mentorship Program was launched as a structured, low-cost opportunity for active LIT members, focused on intentional growth, workforce development, mentorship, networking, and education.

Read More →
Ad Loading...
A WMATA bus at a transit center
Managementby StaffFebruary 27, 2026

WMATA Expands U-Pass Program

Approved as part of WMATA’s Strategic Transformation Plan, the expanded program introduces new pricing and participation options that make it easier for colleges and universities to join and for more students, such as part-time, community college, and graduate students, to benefit from accessible transportation.

Read More →