Trailways Threatens Suit Over Shutdown of Charter Service

Smarting over the loss of its charter bus operating certificates in California, Trailways Lines Inc. officials Tuesday threatened to take the state to court over what they called the “unfair, unwarranted (and) discriminatory” actions of the California Highway Patrol and the Public Utilities Commission.

The Dallas-based company is exploring “every means . . . including legal remedies” to recover “financial losses” resulting from the shutdown of its charter business in the state, according to Roger P. Rydell, vice president of public relations, who joined other company officials at a press conference in Sacramento on Tuesday to protest the state actions.

The PUC, acting on CHP reports that 11 of 22 Trailways charter buses examined by its staff in four inspections in April and July showed “eminently hazardous mechanical conditions,” last week refused to renew the company’s charter permit. In May the PUC suspended the permit of Trailways’ second charter company, American Bus Lines, because of insurance coverage problems, the PUC staff reported.

The permit cancellation means that Trailways cannot operate charter buses within California, according to PUC Executive Director Victor Weisser. However, the transportation giant--operator of 1,200 buses in 43 states--can continue regularly scheduled operations in California. It can also operate charters between California and other states, using its Interstate Commerce Commission permits, he said.

Rydell contended that, in the aftermath of the May 30 crash in Mono County of a Starline Sightseeing Tours charter coach that killed 21 elderly passengers from Santa Monica and Los Angeles, state regulators have “singled out . . . a national, high-profile company” in a politically motivated attack to “defend their safety enforcement procedures.”

In the wake of the Starline crash, the PUC was subjected to criticism by state legislators that it was not adequately safeguarding the safety of charter bus passengers.

Company officials refused to discuss the economic impact of the PUC decisions. During Tuesday’s press conference they were critical of the CHP’s limited “spot inspection” methods, contending that the recommendation to suspend the Trailways charter was “based on a report by one individual who noted that 11 buses in for service were in need of mechanical repairs.”

Trailways spends $36 million a year on maintenance and safety inspection programs and has an outstanding safety record, Rydell said. He said the company’s safety record--1.5 accidents per million miles--is “twice as good” as the National Safety Council-computed average of 4.5 accidents per million miles for all carriers.

Officials of the PUC and the Highway Patrol rejected Rydell’s assertions.

“We have no interest in shutting down such a company unless it is clearly shown continued operations are not in the public interest,” Weisser said. “The CHP told us Trailways (charter operations) does not meet the (safety) standards. This is a public safety issue. . . . We can reinstate them in a matter of minutes if the CHP decides they have come up to standard. We are able to move quickly on this.”

‘Political Agenda’ Denied

“The Highway Patrol is not out to get Trailways bus lines,” California Highway Patrol Commissioner James E. Smith said in a telephone interview. “Nor do we have any political agenda. We have a program to evaluate maintenance operations, and that is what we do.”

He said the PUC had requested the evaluation of Trailways mechanical safety because the company’s charter permit was up for renewal this month. He said inspectors found numerous safety violations.