Airport Ground Transportation Association Airport Taxi Regulatory Models Ray A. Mundy, Ph.D. Executive Director, AGTA University of Missouri – St. Louis.

Airport Ground Transportation Association

Airport Taxi Airport Taxi Regulatory ModelsRegulatory Models

Ray A. Mundy, Ph.D.Ray A. Mundy, Ph.D.

Executive Director, AGTAExecutive Director, AGTA

University of Missouri – St. LouisUniversity of Missouri – St. Louis

IATR ConferenceIATR Conference

September 20September 20th,th, 2010 – Chicago, Illinois 2010 – Chicago, Illinois

Agenda

• Introduction• The Early Years

• Alternative Airport Taxi Dispatch Models• Open Airport• Limited Entry

•LAX Taxi Dispatch & Curb Mgt.• Single Taxi Concessionaire• Driver Representative Issues• Summary

The Early YearsThe Early Years 1950’s1950’s

Single Taxi Co. operating rights to airportSingle Taxi Co. operating rights to airport Taxi Co.’s often guarantee passengersTaxi Co.’s often guarantee passengers

1960’s – 1990’s1960’s – 1990’s Deregulation of taxi companiesDeregulation of taxi companies Independent Contractors Independent Contractors New entries – non dispatchedNew entries – non dispatched Asset Light taxi companiesAsset Light taxi companies Oversupply at airportsOversupply at airports

The Intervening YearsThe Intervening Years

1990’s – 20001990’s – 2000• Airport becomes “regulator”Airport becomes “regulator”

Permitting, Inspections, RulesPermitting, Inspections, Rules Construction of facilities (club houses)Construction of facilities (club houses) Continuously poor servicesContinuously poor services Advent of “Minimum Fare” Advent of “Minimum Fare”

• Airport Administration “frustration) Airport Administration “frustration)

Alternative Airport Taxi Alternative Airport Taxi Dispatch ModelsDispatch Models

Open AirportOpen Airport Every city permitted taxiEvery city permitted taxi Waits of 2,3 or more hoursWaits of 2,3 or more hours Drivers demand better conditionsDrivers demand better conditions Miami & DFW International Airport ExamplesMiami & DFW International Airport Examples

Miami International AirportMiami International Airport

DFW Open Taxi System

Airport Gate FeesAirport Gate Fees

Difficult to compareDifficult to compare Fees range from 50 cents to $5Fees range from 50 cents to $5 It’s not the gross – it’s the netIt’s not the gross – it’s the net Open airports extremely costly to Open airports extremely costly to

managemanage• Miami’s Ground Trans. Staff = > 150Miami’s Ground Trans. Staff = > 150

• DFW’s ground personnel = 80DFW’s ground personnel = 80

• Most open airports lose $ on taxisMost open airports lose $ on taxis

Service ComplaintsService Complaints

Airport Taxi Service: Why so poor?Airport Taxi Service: Why so poor? Lack of taxis at peak or holiday timesLack of taxis at peak or holiday times Taking the “long way” to downtownTaking the “long way” to downtown Excessive baggage & other chargesExcessive baggage & other charges Arguments with curb side dispatchersArguments with curb side dispatchers Dirty carsDirty cars Older, polluting fleetsOlder, polluting fleets Rainbow collation of vehicle types/colorsRainbow collation of vehicle types/colors

Harsh reality of why it is this wayHarsh reality of why it is this way• ““Because you designed it that way”!!!!Because you designed it that way”!!!!

Movement away from open systemsMovement away from open systems

•

Shared EntryShared Entry On demand taxis onlyOn demand taxis only

Not an exclusive for all taxi servicesNot an exclusive for all taxi services Prearranged always have accessPrearranged always have access

• As a rule….As a rule…. Examples:Examples:

• John Wayne AirportJohn Wayne Airport• Tampa Int’l AirportTampa Int’l Airport• Sea-Tac Intl’ AirportSea-Tac Intl’ Airport• Dulles Int’l AirportDulles Int’l Airport

Limited Access

LAX Example:LAX Example: All city taxis participateAll city taxis participate Taxis are permitted only 1 day in 5Taxis are permitted only 1 day in 5 One of the busiest airports for taxisOne of the busiest airports for taxis

• Often 6 to 7,000 taxi trips per dayOften 6 to 7,000 taxi trips per day A model process for large open entry airportsA model process for large open entry airports

LAX Taxi DispatchLAX Taxi Dispatch

Taxis experience a 20 minute wait time in holding lot!

LAX Taxi DispatchLAX Taxi Dispatch

Driver has trip record, Copy is provided to passenger

Taxi dispatch companyProvides curb assistanceFor smooth passenger service

LAX Taxi DispatchLAX Taxi Dispatch

Two Single Taxi Concessionaire Two Single Taxi Concessionaire ExamplesExamples

RDU AirportRDU Airport South West Florida International AirportSouth West Florida International Airport

RDU Int’l AirportRDU Int’l Airport

17 different cab companies providing service at a cost to RDU of > $500,000 per year

To a single concessionaire company which now pays 5% of revenue & assumes all dispatch costs

RDU Airport TaxisRDU Airport Taxis

VehiclesVehicles

Non-domedNon-domed Luxury sedan or van-style serviceLuxury sedan or van-style service Average age of no greater than 4 yearsAverage age of no greater than 4 years

Passenger With Disabilities at Passenger With Disabilities at AirportsAirports

Stalemate between ground transportation Stalemate between ground transportation industry and those with disabilitiesindustry and those with disabilities Operators consider the cost to be prohibitiveOperators consider the cost to be prohibitive Disabled would like access like any otherDisabled would like access like any other

Issue over approved ADA wheelchair Issue over approved ADA wheelchair accessible vehicles or nothingaccessible vehicles or nothing

Solutions may lead to combination of ADA Solutions may lead to combination of ADA and non ADA approved mechanismsand non ADA approved mechanisms

AGTA is considering “Mobility Seats”AGTA is considering “Mobility Seats”

Van Type Mobility Seat

Sedan Type Mobility SeatSedan Type Mobility Seat

SummarySummary Changing taxi company configurations Changing taxi company configurations

• Deregulation/fragmentation of taxi companiesDeregulation/fragmentation of taxi companies• Use of independent contractorsUse of independent contractors• Use of owner – operatorUse of owner – operator• Asset light taxi companiesAsset light taxi companies

Has created vastly oversupplied airport taxi marketsHas created vastly oversupplied airport taxi markets Which, in turn, has created airport taxi regulationsWhich, in turn, has created airport taxi regulations Airports moving to:Airports moving to:

• Limited accessLimited access• Exclusive concessionaires Exclusive concessionaires

Politically difficult but:Politically difficult but:• Driven by service concernsDriven by service concerns• Driven by financial situationDriven by financial situation• Just plain tired of hearing all the complaintsJust plain tired of hearing all the complaints

Solutions for disabled users may be a combination of ADA approved Solutions for disabled users may be a combination of ADA approved wheelchair vehicles and wide-spread use of “Mobility Seats”.wheelchair vehicles and wide-spread use of “Mobility Seats”.