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After careful review, The Transportation Alliance (TTA) has officially endorsed the Centers for Disease Control and Prevention's (CDC's) set of guidelines specific to the transportation industry, “What Rideshare, Taxi, Limo and other Passenger Drivers-for-Hire Need to Know about COVID-19.” Endorsing these safety guidelines comes at a crucial time as transportation companies seek to ensure services are the safest possible for all passengers and drivers.
“These guidelines will be a fundamental part of our industry’s response to COVID-19,” said TTA President Tom Arrighi. “Safety has always been a crucial aspect of the transportation industry but now it's also a key to economic recovery.”
TTA’s Executive Committee voted unanimously to endorse the safety protocols for the following reasons:
- They have the most credibility with the drivers, passengers, and media since it is independent and science-based.
- They offer the most information, including links to other relevant needed resources.
- They offer more precise and clearly stated action for our industry.
- TTA member fleets are already implementing the CDC’s recommendations.
“When the committee discussed which route to take, it was important to have the credibility of the CDC,” said Bill Rouse, co-chair of TTA’s Livery, Taxi & Immediate Response Advisory Board. “Another important factor was the fact that the guidelines were industry-focused, and offered very specific guidance to operators. When we looked over the recommendations, we found most of them to be realistic and achievable.”
TTA strongly urges all passenger transportation companies to follow the CDC guidelines, and to keep abreast of any future changes.
Visit thetransportationalliance.org for more information.
[08.24.20]
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- Category: Industry News
You asked for it and we listened. In this column, we ask operators of all sizes and from all walks of the industry a question about their business and report their answers so you can assess how your own company compares to your peers. If you would like to participate, please email Rob Smentek at rob@chauffeurdriven.com for next issue’s question.
TOPIC: If Congress passes the proposed second round of PPP funding, would you apply? Beyond payroll, what would be on your wish list for use of the money? What did you like/dislike about the program?
Abdou Brahim, Owner/CEO
VA Executive Sedans in Virginia Beach, Va.
Kristie Carter, Co-owner
Aadvanced Limousines in Indianapolis, Ind.
Carlos Cortez, Owner
Cortez Transportation Company in Topeka, Kansas
Clayton Dennard, Owner
Going Coastal Transportation in North Charleston, S.C.
While it is important to keep our staff on payroll—so they can pay their bills and stimulate the economy—the capital expenses of our industry need to be addressed in round two of the PPP. In order to stay afloat as our society regains confidence in both business and leisure travel, assistance is needed, more so now than ever, in paying our vehicle notes and other expenses for which 25 percent of the first round of the PPP was allowed. My wish would be to have those percentages reversed: 25 percent for bringing back employees and 75 percent to catch up with deferments and other expenses that were not allowed under the first round.
I would certainly apply for round two. We followed the rules in round one and almost all our funds will be forgiven. We have yet to decide on whether we are returning the remaining balance or keeping it and use it for cash flow—full well understanding it won’t be forgiven.
The most frustrating part of the PPP was all the changes and “clarifications” that continued to come out with the program. We received our funds, fairly early compared to most (thanks to Kelly Alderete’s efforts), on April 10 and at that time, we were told we needed to begin hiring our employees back within 10 days. We had no work—essentially, our eight weeks was just an extension of unemployment benefits. It would have been nice to relax the timing on the use of the funds. Secondly, we were all confused on a daily basis—being from Texas, I know what shooting at a moving target means.
I am confident that our industry will rebound—maybe not back to what we have experienced in the past, but rest assured, we are a resilient bunch of SOBs and this too shall pass. From our staff to yours, hang in there, keep your heads ups—#wewillsurvive.
Eric Devlin, President/Owner
Premier Transportation in Dallas, Texas
Sean Duval, CEO
Golden Limousine International in Milan, Mich.
Patrick Helvey, Owner/President
Executive Town Car & Limousine Service in Roanoke, Va.
I feel like I have gone to Harvard Business School on the topic of PPP. I logged more than 100 hours on dozens of with webinars and hundreds of various articles. Based on the new guidelines, 60 percent has to go to payroll and 40 percent business expenses. I would use the payroll portion more carefully based on the needs of the business. The business expenses are the easy part: rent, insurance, utilities, and maybe a portion on vehicle payments.
The original program was chaotic at best. We were in the first round of funding and were told the money had to be deployed within eight weeks. We entered the program in mid-April when things were still pretty much shut down. We ended up using the money to pay our chauffeurs to deliver meals to COVID-impacted families, elderly, and veterans. By the time they changed the rules to 24 weeks, we had already exhausted the money we received. It was helpful, but things could have been more efficient. Our last day of PPP funds was June 22.
Mark Kini, Founder & CEO
Boston Chauffeur in Beverly, Mass.
The big struggle with the initial funding of the PPP—which Congress has since amended—was the gamble of when you take the distribution of monies by trying to time the allocation of the money to when you will likely bring employees back. There was virtually no benefit to taking it and paying your employees to work from home or come in to clean vehicles, etc., especially when many of them were making more with the $600 bump to unemployment. This would have worked in the short term, but we cannot have them doing “loose end” work for the next six to eight months.
I think putting restrictions on where the money goes needs to open up a bit as well as the perimeters of when you can take the distribution. The PPP works great for offsetting negative cash flow (amping back up), but should allow those in industries that are lagging to get back to “normal” a longer grace period for pulling the money. Maybe a year? Perhaps there should be a rule when you get to a certain percentage of gross revenue, you have to setup the distribution of money to come in the next 10 days? In other words, if we get back to 60 percent or 70 percent, now you have to take it regardless of the length at which one could take it? I do not know if there is a perfect way to do this, but I believe the prior would help.
Scott Sweers, President
Luxxor Limousines in Des Moines, Iowa
Actually, the PPP Loan was quite easy for us to apply and get quickly. Unfortunately, the money ran out so having another PPP would help get us through the rest of the year and first of next year. Besides payroll, we need the monies for building lease, insurance, utilities, etc. As you can appreciate, we are in a city where the economic impact has devastated many small businesses as Orlando depends on tourism, groups, and conventions for so much of its revenues. We are seeing businesses struggle to exist, and it is sad that many people do not take this pandemic seriously.
The best thing about the PPP is it will turn into a grant for companies that spent the money as intended. I do not see a downside to the program and will apply for the second round of PPP when and if it becomes available.
Barbara White, CFO & Co-owner
VIP Transportation Group in Orlando, Fla.
We’ve loved hearing your answers to our benchmarking questions—but we always welcome suggestions for future topics, too!
Send an email to rob@chauffeurdriven.com you just might see your query answered in our next E-News.
[08.25.20]
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- Category: Industry News
Bus manufacturer New Flyer of America recognizes staffers Lindy Norris and Benjamin Wood for being named to Mass Transit Magazine’s Top 40 Under 40 list for 2020.
Norris, director of marketing and public affairs, and Wood, plant manager of New Flyer’s world-class Anniston, Ala., facility, were recognized for outstanding innovation, demonstrated leadership, and a commitment to making an impact in transit.
“New Flyer is proud to now have six leaders recognized on this prestigious list. Ben and Lindy exemplify our team’s passion to drive innovation in and advancement of North American public transit,” said New Flyer President Chris Stoddart. "With each steering critical elements of New Flyer’s business, Ben and Lindy are making a difference—driving innovation, celebrating diversity, and creating a culture of collaboration within our business, the transportation industry, and across their communities.”
Joining New Flyer in 2017 as director of marketing communications, Norris led media relations and marketing for New Flyer, transforming its brand through the 2017 American Public Transportation Association’s EXPO conference, followed by the launch of New Flyer’s Vehicle Innovation Center (VIC). In her current role, Norris now advocates for technology advancement, workforce development, and investment in sustainable infrastructure for the transportation industry in addition to leading New Flyer’s North American brand strategy.
"It's an honor to be named to Mass Transit’s Top 40 Under 40 and to join other esteemed leaders responsible for defining the new mobility era," said Norris. “With our industry advancing more rapidly than ever before, the opportunity to solve novel challenges alongside social, environmental, and regulatory change is an absolute privilege.”
The company says Wood is an exceptional manufacturing leader who has dedicated the past decade of his career to developing New Flyer’s people, processes, and partnerships. Today, he leads more than 700 people as plant manager of Anniston facility. Pairing his operational expertise with steady and compassionate guidance, he has inspired the Anniston team to achieve the rank of New Flyer’s best performing manufacturing facility over the past year. Together, Wood and the Anniston team have successfully launched advanced zero-emission bus manufacturing processes, enhanced product quality, reduced work-in-process by 85 percent, increased employee retention, and embedded 5S and Lean Manufacturing techniques throughout the plant.
“I am honored to be named to Mass Transit’s Top 40 Under 40 list," said Wood. “Together, our Anniston team works hard to build the industry’s best mobility solutions through innovating buses, technology, and infrastructure, promoting sustainability, and delivering the highest quality products to communities across North America. I am so proud to be part of changing our industry for the better."
Visit newflyer.com for more information.
[8.21.2020]