Flying on Empty – NPR Explores Why Airlines Keep Going Bankrupt

December 16, 2011 at 2:27 pm

(Source: NPR Planet Money)

I was listening to this NPR podcast on the way to work and felt compelled to share with my readers.. Amazing Fact: Pretty much every major full service American airline has filed for Bankruptcy in the past two decades and one of them (U.S. Airways) actually declared bankruptcy twice in three years.  “The industry in aggregate has lost about $60 billion over the 32 years since deregulation, ” says Severin Borenstein, an economist at the Haas School of Business at U.C. Berkley. Meh!

This left me shaking my head in disbelief! Aren’t we the country full of smart MBA grads from top business schools like Harvard, Yale, et al. running some of these businesses? Anyways, if you got a couple of extra minutes, do check out Severin Borenstein’s detailed paper that goes into great details explaining how the airline business is not for the weakest of heart.

On a related note, Boston Globe had an interesting article back in November 2011 that is somewhat optimistic about the future of aviation. Worth a read while you are still suspended in disbelief after reading/listening to the above NPR material.

No Ticket on ScotRail? This is what happens when you cheat on your train ticket in Scotland

December 12, 2011 at 12:08 am

(Source: YouTube via Reddit)

Some poor bloke on ScotRail gets into an argument with the Ticket checker after getting caught for riding free on the train and doesn’t heed the call to get off the train. Repeatedly. Boom! There comes a fellow-rider who didn’t bat an eye and proceeds to gets involved.. What unfolded next can only be described as the “Scottish treatment” ..

Shame on us! Gut Wrenching Story on CBS 60 Minutes Portrays Hard Lives of Families Living in Cars

November 30, 2011 at 11:40 pm

(Source: CBS 60 Minutes)

Came across this below story that aired on CBS this past Sunday (Nov 27) and felt compelled to share it with my readers.

Click here to read the entire story.

Editor’s Note: Shame on us, as a society, for letting these Americans and their kids live this way.  After watching this gut wrenching video, no amount of explanation is going to convince an American with a conscience. What did these poor kids do to deserve this way of life? Maybe their parents did not make the best of choices or handle their finances smartly but that does not justify such a punishing life. It is UNAMERICAN and we cannot raise our next generation this way. While our political system in Washington is grinding itself into a shameless existence, we are once again left to fend for ourselves.  I sincerely hope this documentary kicks off a national dialogue where we work together a nation towards solving this huge mess. SHAME ON US!  A note of thanks to CBS 60 Minutes producers for bringing this compelling story to the nation’s attention. Kudos to the 60 minutes team for the great commentary (an incredible social service in its own merit).

Paid Next to Nothing – Did you know that some airport workers are paid illegally low wages

November 23, 2011 at 3:17 pm

(Source: Huffington Post)

Whoa.. I did not know that some of the airport workers are making a living ONLY out of tips. How terrible – work at one of the swankiest places in town (airports) with people milling around dressed up in their high fashion.  But how many of us know that the person pushing folks around in a wheel chair may not even have the money to buy a sandwich.  Too bad these guys are stuck in a catch 22 situation, not able to tell their passengers that they work for tips due to some stupid federal law hence left out with nothing but a thank you for the service offered.  Something has to change… Either the laws or the rules imposed by the airlines that pay hefty bonuses to their CEOs and leave these folks hanging.  Read the story on Huffingtonpost.

Infographic: United States Has More Broken Bridges Than Golden Arches

November 14, 2011 at 3:25 pm
(Source: Visual.ly)

Click image to enlarge

via

Singing Ballads for Transit – A Creative Soul Makes His Case for Better Public Transportation in Durham, North Carolina

November 8, 2011 at 8:50 pm

(Source: Reddit.com)

Today the Durham County (North Carolina) voters are voting to decide on a sales tax increase that would help fund big improvements to public transit.  Shown below is David McKnight, a local pro-transit man who decided to get a little creative and whipped out a song to encourage voters to vote in support of better public transportation.  So, in appreciation for David’s community service encouraging investment in public transportation, he gets some love from Transportgooru with this blog post and a tweet.

Note: Fellow Redditor, PokeBallsofSteel (yes, that’s his Reddit handle) also notes that David is a skilled violin player. Say a hi to David if you happen to be in the Ninth Street area of Durham (which is near Duke campus?).

Guest Post: National Infrastruc​​​ture Bank – Issues & Recommenda​​​​tions Paper

October 4, 2011 at 4:25 pm

This guest post by Brendan Halleman, a fellow transportation professional, offers a paper that examines the merits of establishing a National Infrastructure Bank. As you are probably aware, the public discussion around this has been highly politicized and my note merely tries to put quantified elements on the table.

Image Courtesy: Wikipedia

A quick summary of the attached paper:
  • A National Infrastructure Bank is just one of several possible instruments in the toolbox of policy makers. On its own, it is unlikely to reverse the steep decline in municipal bond emissions which remain the primary capital market for infrastructure funding in the US. Significantly, the Bank’s mandate and project size requirements all but exclude maintenance of existing assets.
  • Comparisons with other Government Sponsored Enterprises (such as Fannie Mae and Freddie Mac) appear largely unwarranted on account of multi-layered risk provisions and the Authority’s one-way relation with the capital markets (it can sell to them, but not borrow from them).
  • The Authority complements rather than competes with State Infrastructure Banks for large-scale project funding. SIBs are currently too diverse in size and scope to offer a funding framework commensurate with the country’s infrastructure challenges. Bringing them up to speed across 32 States – and establishing them in 18 others – would take at least as long as creating a new Federal entity. As with the existing SIBs, the Authority’s ability to leverage infrastructure investment would greatly increase were it authorized to recycle project loan repayments (including interest and fees) into new credit.
  • An independent Infrastructure Financing Authority is superior in almost every respect to the TIFIA loan program or its Department of Energy counterpart. Through independent project evaluations and innovative financing instruments, AIFA has a far greater ability to tap into a pool of private infrastructure funds worth over USD 200 billion. However, TIFIA’s budget authority can and should be increased for a transitory period while AIFA is ramped up and made fully operational.
  • At present, too few surface transportation projects are candidates for AIFA funding as they do not rely on user-based charging mechanisms. This restriction could be lifted altogether, amended to incorporate other PPP arrangements (e.g. shadow tolls) or garnished with a companion Bill to extend tolling options to the interstate highway system.
  • EIB offers a convincing compromise between macroeconomic policy objectives and CBA-based project funding decisions. There is nothing intrinsically wrong in tasking AIFA with a mandate to enhance economic competitiveness, mitigate environmental damage and enhance public health. However, individual project decisions must be insulated from political arbitrations and unnecessary Federal requirements, such as “buy America” or wage determination clauses.
  • To ensure a shorter phase-in time and a greater degree of private investor interest, AIFA’s official mandate should be extended to include the provision of knowledge dissemination and advisory services to borrowers through a dedicated project preparation facility.
  • Although less easily quantified, establishing an Infrastructure Financing Authority will add a new, independent voice on national infrastructure needs and send a strong signal to private sector investors.

Note: Brendan Halleman is a Project Consultant – Communications & Knowledge Management and has extensive experience in the transportation industry.  Check out his profile http://www.linkedin.com/in/bhalleman. All opinions expressed in this guest post are those of the author’s and do not necessarily reflect the positions of www.Transportgooru.com.

Keeping it local – Ditching the car (and riding transit) helps keep your money in the local economy

September 27, 2011 at 6:19 pm

(Source: via Betacity)

 According to this infographic from Denver bikes, four of five dollars you spend on your car leave your local economy.  To keep 130k transportation dollars in your local economy your city would need to reduce car ownership by 15k cars.  Which could mean 15k more bike owners, and bike money stays 100 percent local which makes good business sense.

Dominating of the Skies, Tweet by Tweet – Airlines and Twitter: An infographic

July 8, 2011 at 12:32 pm

(Source: via  Gadling.com)

Some interesting observations:

  • According to authors , Southwest drops to second place this month as industry giant Delta (21,000) mentions, leaps into first place. It’s interesting to note that this data is based on tweets and opinions in a category of interest, not number of followers.
  •  @SouthwestAir still wins that battle, with 1,142,579 followers vs. 206,201 for the main @Delta Twitter.

U.S. Surface Transportation Re-authorization Bill – Update as of June 29, 2011

June 30, 2011 at 4:55 pm

Update Courtesy: ITS America

As the House Transportation and Infrastructure (T&I) Committee continues to work on finalizing its six-year surface transportation reauthorization bill in anticipation of an early July introduction, Senate Environment and Public Works Committee Chairman Barbara Boxer (D-CA) has announced plans to introduce the Senate version of the bill during the week of July 11, hold hearings the week of July 18, and is expected to proceed with a Committee mark-up on July 27.  The Senate bill, which is rumored to be a two-year bill instead of six, is expected to face a $12 billion funding shortfall which would require the Senate Finance Committee to come up with additional revenues before the legislation could be passed.  Committee staff continues to craft the bill in a bipartisan fashion with their most recent work focusing on a freight section.  ITS America is working closely with Senate staff to include provisions that would promote greater deployment of ITS.

On the House side, T&I Committee majority staff continues to work on their bill but have provided limited details as to what specific policies and programs will be included.  Speculation continues about the time frame for moving a surface transportation bill through the House, with Majority Leader Eric Cantor (R-VA/7) taking heat for not including the reauthorization bill in a June 10 memo to House Republicans outlining key pieces of legislation that will be debated on the House floor this summer.  The American Road & Transportation Builders Association obtained the memo and has posted the document on its website here.

Meanwhile Congressman Richard Hanna (R-NY/24), Vice-Chair of the Highways and Transit Subcommittee, joined ITS America’s Congressional Roundtable members for breakfast to discuss ITS and the transportation reauthorization bill.  As a businessman who spent nearly three decades in the construction industry before being elected to Congress, Rep. Hanna stressed the need for technology solutions that can help public agencies do ‘more with less’.  The Congressman made note of Portland, Oregon as an example of a city that is investing in ITS to help create a more efficient, user-friendly transportation network, while acknowledging the pressure many agencies face to roll out more visible ‘bricks and mortar’ projects.  He also said the “argument is building daily” for investing in transportation as a means to create jobs and bring down the nation’s high unemployment rate.  Read more about the Congressional Roundtable in the AASHTO Journal.