Coronavirus Relief for Motorcoach
Industry: How Did Congress
Miss the Bus?
Editor's Note: This interview was
conducted in early April 2020, after the
passage of the CARES Act.
BUSRide editors spoke with Peter
Pantuso, president and CEO of the
American Bus Association (ABA), about
Peter Pantuso,
Congress’ failure to include the motorcoach
ABA president
industry in the Coronavirus Aid, Relief, and.
and CEO
Economic Security Act (or the ”CARES
Act‘); what that means for intercity bus operators and the
American economy at-large; and how operators can help
themselves and their industry today.
BUSRide: The motorcoach and intercity bus industry needs
immediate relief from Congress during the coronavirus pandemic.
What happened?
Pantuso: Our industry was not specifi cally identifi ed in the Senate
bill, which means the Senate and the House agreed to have dedicated
funding for every passenger mode of transportation – with the
exception of intercity buses.
I am mystifi ed as to how they put that together. We have been
working literally day and night for the last few weeks, trying to get
intercity buses included. We have tried every single angle, so it has
not been for lack of effort.
The impact that I see on the industry is as follows: Motorcoach
businesses fall into three broad groups of service – charter and tour,
commuter, and scheduled service.
As of today, I think every charter and tour company is pretty much
shut down. Most, if not all, of their employees are furloughed. There
are a few places where an operator might still be doing some one-off
trip for whatever reason, but they are mostly all closed.
The commuter market is close to that point, if not already there.
Non-essential businesses are being told to close by governors. As all
that is moving forward, there is obviously less need for commuter
services.
Then last, but certainly not least, are the scheduled services, which
have signifi cantly cut services due to very small ridership.
When can these industry segments expect to recover?
Nobody really has the answer to that. When we do start
recovering, I believe the commuter services will start to come back
fi rst because people will need to get back to work on a reliable form
of transportation.
Then as people begin to move around the country a little more, we
will see the scheduled carriers come back.
Finally, the last segment to recover will be the charter and tour
markets. That represents a unique part of the industry, because
most operators have not been operating at high levels for the
past few months. Business slowed down during the holidays and
remained slow in January and February. Then, as it is every year,
18 | BUSRIDE.COM | MAY / JUNE 2020
the industry was expected to boom through March, April, May,
and early June – thanks to the heavy student market. That is when
virtually every charter company runs at 100-percent capacity. Due
to supply and demand, those months represent the highest annual
rates for these operators. Many make more than half of their
annual revenue during those spring and summer months.
That revenue now is completely gone because all those student
trips are virtually canceled. I do not know of any operator whose
student trips in March and or April have not canceled. Most have also
canceled for the May and June.
To lose half a year’s revenue is devastating for independent
businesses of any size, especially after coming off a seasonal three-
month hiatus. Many of our operators spent those months reinvesting
in their companies – buying new vehicles, new technology, or
conducting much-needed maintenance.
They still have bus payments. They still have insurance payments.
They have rent or lease payments due on their facilities. Half of their
annual revenues are gone, and no one is sure what the rest of the year
will be like. Many of these companies are in diffi cult fi nancial; shape
today, and it will continue to get worse for them.
How did Congress miss the bus so badly?
They not only underestimated our contribution to the economy;
they underestimate the role that we serve in security and in defense.
There are almost 600 motorcoach companies that have approval from
the Department of Defense to move troops every year. How do those
groups move when those companies are out of business?
We are also vital link to the Federal Emergency Management
Administration (FEMA), and to many state emergency management
organizations in the Gulf Coast and on the Eastern seaboard. In any
given year, there can be as many as 600 or 650 buses called out to
move people out of harm’s way during hurricane season. Most often
we are moving people who do not have accessible transportation, or
who live in nursing homes. What happens when hurricane season hits
and those companies aren’t available to move those individuals?
They further underestimated our value as part of the travel and
tourism industry. Our travel partners, as well as hotels, restaurants,
theaters, theme parks, and more, amount to an annual $237 billion
contribution to the economy.
They simply do not understand, and our plight has thus far fallen
on deaf ears.
Congress failed to help the bus industry, but how can operators help
themselves during this crisis?
One of our top priorities is working on the fourth stimulus
package, which will hopefully be deliberated when Congress returns
from recess – but many of our members cannot wait that long.
Today, operators must be calling their state’s Small Business
Administration (SBA) offi ce. Many stimulus dollars have been set
aside for small businesses in this crisis, and operators must be
looking into how they can tap those dollars.
Our priority at the ABA today is helping our members understand
and navigate those elements – making sure our operators know this
money is out there and that they know how to apply for it.