Airport Shuttles Multiply as Some Firms Seek to Clip Wings of Rivals
The number of privately owned airport-shuttle companies in the San Fernando Valley has mushroomed recently as companies try to tap into a gold mine of potential passengers eager to leave the driving to someone else.
In the past few months, three companies--including SuperShuttle International, the country’s largest door-to-door airport shuttle--have started operations in the Valley, and one of them already wants to greatly expand its services.
Waiting in the wings are two more firms that have submitted applications to the state Public Utilities Commission to provide airport transportation to the Valley and parts of Ventura County, including Simi Valley, for its first service ever.
Previously, the only airport-transit service available to Valley residents was by small bus companies offering limited service and the Flyway Bus Service from Van Nuys Airport, which operates under a contract with the City of Los Angeles and thus is not subject to PUC regulation.
‘More and More’
“More and more people are getting into it,” said William Turkish, a PUC administrative law judge who on Jan. 20 will hear the case of American Airport Flyer, one of the two companies planning to launch an airport-shuttle service. Turkish will make a recommendation to the PUC, which will decide whether to allow the company to join in the shuttle free-for-all at Burbank and Los Angeles airports.
The other firm is AURA Transportation, which now runs a chartered limousine service to the airport and has asked the PUC for permission to provide door-to-door shuttle service.
But some shuttles in the Valley, after getting their foot in the door, are now afraid they may be hurt by increased competition.
The explosion of van shuttles in California began in 1981, when the PUC opened up a market then dominated by cabs and buses. More than 60 van companies in Los Angeles and Orange counties now serve LAX and Burbank Airport, contrasted with just two in 1971.
The proliferation of airport shuttles reflects what experts say is a consumer preference: Travelers, especially employees of businesses needing easy access to Los Angeles International Airport, want the luxury of taxi service without the expense of a long cab ride.
Traditionally, airport-transportation firms provided buses from designated stops at certain times.
The Way It Works
Shuttle companies allow customers to order transportation just as they would a taxi. Instead of having a taxi to themselves, however, customers share a van with others who are in the same geographical area, riding along as they are picked up or dropped off.
The advantage is that they may leave their cars at home, but they don’t have to pay the cost of a taxi. For example, a cab ride from LAX to Westlake Village would cost $75 (based on $1.60 per mile) plus an $8 surcharge, according to a representative of the Blue and Yellow Cab Co. A shuttle would cost at most $30. The same taxi trip to North Hollywood would cost $40, whereas a shuttle would cost $20 to $25.
“I think the Valley has been waiting for this service for a long time, but for some reason it had not been targeted” until now, said John Kindt, owner of Prime Time Limousine Service, a company that wants to expand its fledgling Valley-based airport-shuttle business to include both Los Angeles and Orange counties.
The growth of airport-shuttle firms has fueled criticism by some transportation companies that say there are not enough customers for everyone.
Ben Platini, co-owner of Valley Airport Shuttle, a small Van Nuys-based firm that began a door-to-door shuttle just before Christmas, said the competition “is going to damage our company and keep us from growing.”
Platini, who has two vans in operation, is doing more than just complaining. He filed a formal protest with the PUC, urging the regulatory agency to deny American Airport Flyer’s application for a permit to operate.
And he is not the only one to take action. A separate protest was filed by Reginald Charleson, owner of Great American Stageline, a Newbury Park airport-shuttle company. Charleson also said his business would be hurt by the competition.
Executives at other companies, however, say they welcome more firms into the business.
“It’s good for the consumer; it’s good for us, and it’s good for everyone involved because it keeps us on our toes,” said Bob Bir, director of marketing and advertising for SuperShuttle, which has more than 200 vans in the Los Angeles area. Last summer, Bir’s company acquired 24-hour Airport Express in Orange County, which is being converted into a new division of SuperShuttle.
In the early days of the shuttle boon, angry bus companies argued that vans were arriving at terminals a few minutes early to pirate passengers awaiting a bus pickup. Taxi drivers also grumbled, saying that vans were swiping their customers as well.
Although it once protected the monopoly enjoyed by buses and cab companies, it was the PUC that decided to switch gears, reasoning that competition among the various modes of transportation was healthy.
“The commission decided it was in the interest of the public,” said Turkish, the PUC law judge.
Business groups in particular welcomed another option to personal car, bus or cab.
Stephen Rubenstein, president and chief administrative officer of the Conejo Valley Chamber of Commerce, said a report from the Ventura Economic Development Assn. showed that 3 million people a year need to get to LAX or Burbank Airport from Ventura County.
“Since we don’t have a commercial airport in the county, we have to get to the L.A. area, and our alternatives are limited,” Rubenstein said.
Mass-Transit Alternative
Now, the one mass-transit alternative in Ventura County is Charleson’s Stageline, which has been in operation 12 years. The company’s new, 51-passenger buses, complete with restrooms and reclining seats, make stops at six designated locations--five in Ventura County and one in Woodland Hills--before heading non-stop to LAX.
“We’ve been in business a long time, and most of the people like our service,” said Fran McCrillis, Stageline’s manager.
But Stageline’s virtual lock on the airport-shuttle business in Ventura may come to an end. In his application now before the PUC, David Abadinsky, owner of American Airport Flyer, has proposed establishing a bus service to Los Angeles and Burbank airports that will stop in Simi Valley, Chatsworth and Sherman Oaks.
He also wants to service eastern Ventura County cities on an on-call basis, providing that a minimum of six passengers make reservations to be picked up at a predetermined stop.
“I am hearing the public and not listening to the competitors,” said Abadinsky, who operates three taxi companies. “I think there is a market for everybody out there.”
Abadinsky is not the only one trying to get in on the growing West Valley and eastern Ventura County market. AURA Transportation has asked the PUC for permission to provide a shuttle service in Simi Valley, Moorpark, Thousand Oaks, Westlake Village, Agoura, Calabasas and Malibu.
AURA Vice President Lynn Kiff said the company has received “several indications” from hotel managers and corporate executives that alternative forms of transportation to the airport are needed.
“We’re not going into this to be disruptive or to put ourselves out of business,” Kiff said, referring to the increasing competition among shuttle services. “We’re just saying there is a segment of the marketplace that is not being serviced.”
4-Month-Old Line
Prime Time Limousine started a door-to-door airport shuttle in the Valley about four months ago with two crimson, seven-passenger vans. By month’s end, two more vehicles were added. Now the company is ready to tackle all of Los Angeles and Orange counties, as well as Simi Valley and Moorpark in Ventura County, said owner Kindt.
PUC hearings before an administrative law judge for AURA and Prime Time have not been scheduled.
However, even with its latest pro-competition policy, the PUC may decide enough is enough.
Turkish, who will make a written recommendation to the commission after the hearing on Abadinsky’s application, said there is a negative side to the growing number of companies wanting to break into the airport-shuttle business: congestion at the airport and few riders because of the number of competitors.
“We can’t guarantee that everyone who gets into this business makes it,” Turkish said. “But, if the field is saturated, the commission will and can limit the number of new entries.”
AIRPORT TRANSIT
PROPOSED SERVICES
American Airport Flyer: Filed application with the Public Utilities Commission to operate new airport shuttle to Los Angeles International and Burbank airports. Proposed operation to provide daily service with designated stops in Simi Valley, Chatsworth and Sherman Oaks. Also, on-call service for a minimum of six adult passengers with pickup at locations in Ventura, Oxnard, Camarillo, Moorpark, Thousand Oaks, Newbury Park and Westlake Village. LAX or Burbank Airport service: $7 to $11 on fixed routes; $10 to $16 for on-call service.
AURA Transportation: Now operates a chartered limousine service to the airport. Filed an application with the PUC to provide door-to-door airport shuttle service in Simi Valley, Moorpark, Thousand Oaks, Westlake Village, Agoura, Calabasas and Malibu. LAX or Burbank Airport service: $18 to $30.
EXISTING SERVICES
Prime Time Limousine Service: Now operates door-to-door airport shuttle service in the San Fernando Valley. Applied for a permit to provide service to Simi Valley, Moorpark and throughout Los Angeles and Orange counties. Service between LAX or Burbank Airport and Valley: $10 to $30.
Great American Stageline: In operation since 1974. Provides airport bus transportation to LAX from five designated locations in Ventura County and one stop in Woodland Hills. LAX service: $7.25 to $16.75.
SuperShuttle: The largest airport shuttle. Operates door-to-door service in Los Angeles and has just expanded service to include Orange County. Service between LAX or Burbank Airport and Valley: $10 to $31.
Valley Airport Shuttle: Began operation a month before Christmas. Operates an on-call door-to-door service in Valley areas of Van Nuys, Encino, Sherman Oaks, Panorama City and Tarzana. LAX service: $15 to $20. (No service to Burbank Airport.)
Flyway Bus Service: Daily shuttle from a designated stop in Van Nuys to LAX that operates under a contract with the City of Los Angeles. LAX service: $4.50 one way for adults, $2.25 children. (No service to Burbank Airport.)
