Friday, October 12, 2012

ABA






WASHINGTON, D.C. — American Bus Association President and CEO Peter Pantuso told members of the House Transportation and Infrastructure Committee on Sept. 20 that motorcoach transportation in the U.S. remains competitive against other modes despite Amtrak being partially supported by federal government funds.
“While the intercity bus industry must compete in the free market, its major intercity competition, including Amtrak, is heavily subsidized,” Pantuso said. “The American public is hungry for more transportation options. In a study released last week, the Natural Resources Defense Council found that three out of four Americans are frustrated with the lack of transportation options that forces them to drive more than they would prefer.

“As the subsidy gap between our industry and Amtrak continues to grow, bus operators will start to lose the price and time competition, not as a function of the free market, but because of government spending.”

Amtrak is not required to operate like a business covering both operational and capital costs like bus operators do, even on “profitable” corridors, Pantuso said.

“While this hurts competition in densely populated areas, it is a disaster for the industry and, more importantly, Americans living in more sparsely populated regions.”


       Wyatt Olsen
The Greyhound Group


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