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The Ground Transportation “Concessioned” Airport AGTA Fall 2008

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.

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The Ground Transportation “Concessioned” Airport AGTA Fall 2008

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  1. The Ground Transportation “Concessioned” AirportAGTA Fall 2008 When Concessionaires are Not Necessary

  2. Quick facts • Van Galder Bus founded 1947 • Janesville, WI • Primary Markets • Madison, WI • Rockford, IL

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

  4. Scheduled Services • 99 daily scheduled runs in/out of Chicago • O’Hare • Midway • Downtown Chicago

  5. Focus on O’Hare • Airport Express loads from each terminal under their agreement • All others load from Bus/Shuttle Center

  6. Bus/Shuttle Center

  7. 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

  8. 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

  9. O’Hare Intercity Bus Association Current Members • Peoria Charter • Coach USA • Van Galder • Wisconsin Coach (Milwaukee) • Tri-State (Indiana)

  10. Concessioned OTRB’s? Typically, out of region carriers are not concessioned • Why would we? • Why would an airport?

  11. 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

  12. 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

  13. Why would an airport want a concessioned OTRB agreement? • Increase market share to outlying areas • Milwaukee -20.8% • Madison -15.2% • Rockford -39%

  14. Why would an airport want a concessioned OTRB agreement? • Smaller airports dropping service, increasing fares

  15. What does work/latest trends • Megabus • Bolt Bus • Many other regional lines

  16. Why these work? • Gas prices • Parking • Low fares • High quality • No frills • Low overhead • Don’t pay facility charges, percentages • Density is the key

  17. New start-up service for an airport • Reasonable Accommodation for the bus

  18. When a Concession is Not Necessary • Established carrier • Quality service • Strong demand • Density of the market • High barriers of entry

  19. Barriers to entry • Cost of equipment • Infrastructure/fixed costs • Ticketing/web portal • Startup costs • 3 years standard

  20. The strong will survive • Competition

  21. Thank You Allen Fugate Operations Manager Van Galder Bus/Coach USA allen.fugate@coachusa.com 800-747-0994

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