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