the ground transportation “concessioned” airport agta fall 2008 when concessionaires are not...

The Ground Transportation “Concessioned”

Airport AGTA Fall 2008

When Concessionaires are Not Necessary

Quick facts

• Van Galder Bus founded 1947– Janesville, WI

• Primary Markets– Madison, WI– Rockford, IL

Fleet

• Fleet of 130 vehicles– 50 motorcoaches– 80 school bus/contract vehicles

Scheduled Services

• 99 daily scheduled runs in/out of Chicago

– O’Hare– Midway– Downtown Chicago

Focus on O’Hare

• Airport Express loads from each terminal under their agreement

• All others load from Bus/Shuttle Center

Bus/Shuttle Center

Bus/Shuttle Center

• Central facility at O’Hare created to alleviate congestion, air quality issues at inner core

• Shared by regional operators, hotel/motel/courtesy operators

O’Hare Intercity Bus Association

• Group of non-concessioned carriers who collectively lease space at the O’Hare Bus/Shuttle Center

• Original groundwork laid by John Shoup of Tri-State/United Limo (now Coach USA)

• Other members have come & gone over time

O’Hare Intercity Bus Association Current Members

• Peoria Charter

• Coach USA• Van Galder • Wisconsin Coach (Milwaukee)• Tri-State (Indiana)

Concessioned OTRB’s?

Typically, out of region carriers are not concessioned

• Why would we?

• Why would an airport?

Why would we want a concession agreement?

• There are plenty of reasons a concession agreement might be desirable for an operator– Exclusive– Asset to leverage– Protection for what you’ve built

Why would an airport want a concessioned OTRB agreement?

• Maintain control at the curb – too many cars on roadways– parking issues– congestion/pollution– bandit operators

Why would an airport want a concessioned OTRB agreement?

• Increase market share to outlying areas– Milwaukee -20.8%– Madison -15.2%– Rockford -39%

Why would an airport want a concessioned OTRB agreement?

• Smaller airports dropping service, increasing fares

What does work/latest trends

• Megabus

• Bolt Bus

• Many other regional lines

Why these work?

• Gas prices• Parking• Low fares• High quality• No frills • Low overhead • Don’t pay facility charges, percentages• Density is the key

New start-up service for an airport

• Reasonable Accommodation for the bus

When a Concession is Not Necessary

• Established carrier

• Quality service

• Strong demand

• Density of the market

• High barriers of entry

Barriers to entry

• Cost of equipment

• Infrastructure/fixed costs

• Ticketing/web portal

• Startup costs

• 3 years standard

The strong will survive

• Competition

Thank You

Allen FugateOperations Manager

Van Galder Bus/Coach USAallen.fugate@coachusa.com

800-747-0994