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There was a lot of ground to cover in the most recent weekly virtual meeting by the United Motorcoach Association (UMA) this past Thursday. Hosted by Interim President & CEO Larry Killingsworth and Vice President Ken Presley, nearly 400 attendees joined the hour-long meeting.
UMA Vice President Ken Presley
Presley noted that more and more UMA members are applying for and receiving funding for the Paycheck Protection Program (PPP) and Economic Injury Disaster Loans (EIDL), according to surveys taken by the association. Just before the call, the House passed H.R. 7010, the Paycheck Protection Program Flexibility Act of 2020, which lowered the forgiveness threshold for payroll and benefits from 75 percent to 60 percent and increased the eight-week window to 24 weeks. Although it’s a positive step for the industry, it still has to clear the Senate, which has proposed its own bill. The Senate is expected to vote on it this week.
UMA Interim President and CEO Larry Killingsworth
Killingsworth and Presley detailed a few other programs that they are watching, including the Main Street Lending Program (MSLP), which is being handled by the Federal Reserve, and a proposed RESTART Program, which was proposed by Senators Michael Bennet (D-Colo.) and Todd Young (R-Ind.) in late May. MSLP applies to small and midsize companies that were “financially sound prior to the COVID-19 pandemic” with a minimum loan size of $500,000 (lowered from $1M). With stricter qualification criteria and a four-year maturation, Killingsworth says that it can help businesses that need that capital but that it probably won’t be the answer for most because of the size and scope of the loan and the reluctance of companies to take on more debt without revenue.
According to Senator Bennet’s website, the RESTART Program was designed as the next step of the PPP, “to provide funding to cover the next six months of payroll, benefits, and fixed operating expenses for businesses that have taken a substantial revenue hit during the COVID-19 pandemic. A share of that loan will be forgiven based on the revenue losses suffered by the business in 2020, and the remainder can be repaid over seven years, with no interest payments due in the first year and no principal due for the first two years.” UMA is keeping an eye on the progress of the RESTART Program, although it does not currently have bipartisan support. The full text is available here.
Operators on the call shared what’s happening in their markets. Dale McMichael of Executive Coach in Pennsylvania said that he’s still doing wedding runs, while Elizabeth Kamalakis of Coachlight Tours in South Carolina commented that booked senior tours are proceeding but area schools may be closed through January. Both services have ramped up cleaning procedures. UMA Chairman Jeff Polzien shared his experience with flights in his area, noting that a common route from Oklahoma to Washington, D.C., was slowly returning to its pre-COVID numbers.
“I fell into the trap that we wouldn’t pick up until next spring, but I’m rethinking it,” Polzien said. “It feels like there’s pent-up demand,” and that operators should be ready for it.
Finally, Killingsworth shared his support for the state motorcoach rallies that were being organized by local state associations, tapping into the energy that was created with the Motorcoach Rolling for Awareness campaign that took place in Washington, D.C., on May 13. The rallies were expected in 40 states nationwide on June 3, but most associations decided this week to postpone in light of the widespread protests following the death of Minnesota man George Floyd while in police custody.
The next UMA call is scheduled for June 4. Visit uma.org for information on how to join.
[06.02.20]
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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: Are you giving customers "safety kits," and if so, what's included? Are they branded? If not, are you planning to offer this in the future? Also, have you installed any type of protective shields/dividers into your vehicles? Was it a simple process?
We are providing our clients with branded safety kits, which include a mask, gloves, hand sanitizer, and a thank-you note. We will continue to distribute these as appropriate. Our vehicles have protective shields/dividers, and the reaction has been very positive from clients.
Rich Badalamenti, Vice President
Music Express East in Englewood, N.J.
We give each passenger an individual vacuum-sealed bag containing a mask, a pair of gloves, a single dose hydroalcoholic lotion, and one individual hygienic bag for better waste management. Currently, all vehicles in our fleet are equipped with a Plexiglas separation between the front and rear cabin, validated to be compliant by our insurer. Further, as per the distancing instructions from the World Health Organization, we only accept reservations for sedans with two passengers max and vans with a maximum of four passengers.
Francois Bertin, Manager
Pegasus Limousine in Paris, France
We are providing customer with safety care kit that includes a face mask, facial tissue, and a travel-size hand sanitizer. We are planning to add antimicrobial wipes as well. The items are branded with our company name, logo, and phone number.
Recently, we ordered protective shields that clip into the vehicles. The process is fairly simple to install. It is a selling point that our clientele feels safe and confident about our service. Our chauffeurs don’t mind having the shield installed as an extra layer of protection, even though they are also wearing masks and supplied with individualized hand sanitizer and soap.
Moe Bouayad, President
Crown Worldwide Transportation in Englewood, Colo.
While we are not providing any safety kits, we bought sneeze guards for four cars in our fleet. They are available to clients upon request. We’ve found the partitions to be easy to install as they strap onto the seatbelt.
Chris Cosand, President
Elite Black Car Services in Fountain View, Calif.
We provide each of our passengers with a pair of gloves, a bottle of hand sanitizer, and an antiseptic towelette. Dividers are an excellent idea to help prevent the spread COVID-19. We currently have them on order, and they will soon be available in our vehicles.
Agustin Hernandez, Owner
Blackcar Offers Limo Services in Mexico City, Mexico
We offer non-branded hand disinfectant and branded masks to our clients. As of yet, we haven´t installed safety shields and aren´t planning on doing so. But we´re closely monitoring the situation in case the need arises. What is mandatory is the safe distance between drivers and passengers, which led us to institute a maximum of two passengers for a Mercedes-Benz E-Class and four passengers for a V-Class.
Katarina Monsberger, Managing Director
RSL Premium Chauffeured Services in Vienna, Austria
We are always looking for ways to improve our processes. That’s why we now offer protective shields between our chauffeurs and passengers to limit exposure.
Mert Onal, President
ZBest Worldwide in Baltimore, Md.
Sanitizing alcohol wipes are available in vehicles for drivers and passengers, and a face mask and sanitary kit will be available for any passenger upon request. Further, Plexiglas-partitioned sedans and minivans are available upon request. We insist that drivers and passengers must wear the mask for the whole trip.
Virginie Perrocheau, France & International Sales Manager
Imediat Services in Paris, France
We are providing safety kits with a mask for all customers who don’t have their own and hand sanitizer. We have included a pen with a stylus tip in case they need it while traveling. We also have removable “sneeze-guards”; if the client or affiliates request that the vehicle have it installed, we will put it in. It takes less than a minute to install and remove. It was a very simple process to purchase them, and the chauffeurs don’t mind them.
Guri Rajput, CEO
Seattle Royal Town Car & Limo in Seattle, Wash.
We are providing hand sanitizer, wipes, and a mask are available upon request. We are not charging anything extra for this service. We are installing protective shields/sneeze guards in our vehicles) and have gotten positive reviews on them. This is still a new thing for us, but it tells the clients that we care.
Jess Sandhu, Director of Operations
A&A Limousine & Bus Service in Seattle, Wash.
We are currently looking at safety kits. I am considering the kits some of my peers have already made, checking on pricing as well as contemplating what items I believe would be useful and appreciated most by the client. However, I have concerns about aftermarket dividers. I firmly believe in doing what makes our clients and affiliates feel most comfortable, so, I have some “sneeze guard” dividers on order. We will have them available and ready to install should the client or affiliate prefer/demand.
Quentin Shackelford, Owner
AllClassLimo.com in Wichita, Kansas
We are currently developing branded safety kits for our future travelers. Before COVID-19 hit, we were in the process of developing a "thank you kit" for our clients, but we quickly realized that we needed to shift gears and think about what our clients would appreciate when they are able to travel again. The safety of our passengers and chauffeurs is at the forefront of everything we do and we want to carry that mindset into any future initiatives.
Every company that is still actively transporting passengers in this environment has had to deal with the challenge of proactively finding solutions to keep employees and customers safe. One solution that we quickly transitioned to was the purchase and installation of safety shields. We researched and worked with several vendors to consider various materials and price points, eventually landing on an acrylic material because of its clean look and effectiveness in creating a transparent barrier between the chauffeur and passenger. With the demand for this type of product being at an all-time high, some companies have done a really nice job of making these barriers very easy to install, clean, and maintain. Overall, we couldn't be happier with the response we've received from customers and chauffeurs alike. As you can imagine one of the first questions travelers are asking right now is, "what are you doing in response to this health crisis?" The response has been very positive and many customers have gone out of their way to thank us for taking strong initiatives.
Jay Velastegui, Assistant Vice President
A-1 Limousine in Princeton, N.J.
The safety kits available in our vehicles include sanitizing alcohol wipes for drivers and passengers. Sanitary masks are available for customers who need one. Company-branded Plexiglas partitions/screen protectors in sedans and SUVs are available on request. We have installed them in half of our fleet. They are thin and transparent in order to maintain the feeling of spaciousness. Furthermore, vehicles are cleaned regularly and sanitized with Ozone disinfection; we have also installed the new eco3 (air purified ozone machine) in our Sprinters.
Joseph Votano, CEO
Abaser Limousine Services in Barcelona, Spain
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.
[06.02.20]
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- Category: Industry News
On May 27, the House passed H.R. 7010, the Paycheck Protection Program Flexibility Act of 2020, which offered some new guidelines for loan forgiveness eligibility. The bill changes some important components of the PPP to allow businesses more flexibility with the amount spent on payroll and benefits, as well as extending the critical eight-week window for spending the funds. The American Bus Association (ABA), one of many organizations that has been pushing public officials for reforms, responded to the passing of the House bill.
"We appreciate the House taking this action and recognizing the hardship small businesses are facing, particularly for those who did not fully understand their obligations after initially accepting funds under the PPP,” said ABA President & CEO Peter Pantuso. “By extending the original loan coverage period to 24 weeks, rather than the original eight weeks, and extending the deadline for rehiring workers till the end of the year, the legislation can help some businesses in terms of eligibility for loan forgiveness. But there are many transportation-related businesses who have not received or qualified for PPP money, or who won’t qualify for loan forgiveness, and their struggle for survival during this pandemic continues. We need Congress to do more. As the traveling public remains at home, with businesses and schools shuttered, and the prospect of public transportation on hold for the foreseeable future, these essential transportation businesses cannot hold out without additional help from Congress, just like the other transportation modes received. The private motorcoach industry needs $15 billion in grants and loans to keep moving America when citizens are ready and able to travel again."
Although H.R. 7010 has passed the House, the Senate is currently considering its own bill, which is expected to be voted on this week. There are critical differences in the two chambers’ bills, including maintaining the 75 percent threshold for salaries and benefits in the Senate bill.
Visit buses.org for more information.
[06.01.20]