the ground transportation “concessioned” airport agta fall 2008
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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. - PowerPoint PPT PresentationTRANSCRIPT
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
