REGULATORY REFORM IN THE INTERCITY BUS INDUSTRY

Deregulation of the intercity bus industry will go a long way toward improving service to passengers. The Bus Regulatory Reform Act of 1981, passed recently by the House of Representatives, makes some changes but does not go far enough. If anything, this is one area where Congress could start catching up with the states. In July 1980, Florida became the first state to end public utility-style intrastate regulation of transportation companies, and the voters of Arizona overwhelmingly approved a similar approach in November 1980. Although the Florida experience is too new to draw any definitive conclusions, an ICC study reported in April 1981 that: (1) Greyhound and Trailways had increased their total weekly scheduled miles by eight and seven percent, respectively; (2) carriers were experimenting with new fare options; (3) charter service had improved, and bus companies were using their equipment more efficiently; and (4) where service losses occurred due to shifts in regular-route service, either another carrier entered the market, another carrier remained in the market, or another carrier was providing service to a nearby community. ICC regulation of the intercity bus industry developed during the 1930's, when assuring the financial stability of American business was a top priority. As America enters the 1980's, however, the challenges are double-digit inflation, a stagnant economy, and an uncertain world oil situation. These problems demand not stifling cartel regulation, but more competition, greater productivity, and increased fuel conservation. Deregulation will not solve all the problems of the intercity bus industry; it will not undo the business cycle or bring down the price of fuel. Yet it will encourage competition by giving the bus industry new operating flexibility and new incentives to innovate, thereby improving service to the travelling public. (Author)

• Corporate Authors:

  University of Michigan Law School

  731 Legal Research Building
  Ann Arbor, MI  United States  48104
• Authors:
  • Hitchcock, C F
• Publication Date: 1981

Media Info

• Pagination: 44 p.
• Serial:
  • Journal of Law Reform
  • Volume: 15
  • Issue Number: 1
  • Publisher: University of Michigan Law School

Subject/Index Terms

• TRT Terms: Bus transportation; Competition; Deregulation; Economics; Fares; Intercity bus lines; Scheduling; Transportation
• Subject Areas: Administration and Management; Economics; Transportation (General); I10: Economics and Administration;

Filing Info

• Accession Number: 00367335
• Record Type: Publication
• Files: TRIS
• Created Date: Nov 30 1982 12:00AM