(Source: NPR’s Planet Money)

 Even pirates need a business plan. J. Peter Pham, an analyst of African affairs at the James Madison University, looks at the economics of guns, captains, and $2 million dropped into the sea in waterproof containers. Plus, Per Gullestrup, CEO of Danish shipping company Clipper Group, has dealt with pirates first-hand — he says they’re tough negotiators.  When he ironed out the ransom details with the pirates, he had 3 demands:

1. The pirates showed “proof of life” (that the crew was still alive)
2. That they could drop the money from the air (faster than getting it there in a tug)
3. That the pirates fill up the ship with fuel.

 For a related story on NPR’s Planet money, click here.

(Source: Streetsblog)

Ultimately, SAFETEA-LU’s greatest failing may have been its failure to articulate a truly multi-modal vision for the nation’s surface transportation network. Essentially a continuation of 1950s-era policies, it repeated the same-old same-old about a need to complete the Interstate highway program, directing billions of dollars to state DOTs to pour asphalt and expand roadways. Nowhere did the legislation suggest a need to adapt to a future in which American dependence on automobiles and fossil fuels must be dramatically reduced. That’s the challenge faced by Congress today.

Less of this...

 Transportation funding from Washington has been heavily weighted toward highway spending ever since President Eisenhower first proposed the Interstate Highway Act in 1956. SAFETEA-LU, 2005’s federal transportation bill, was no exception. It provided $244.1 billionover five years, its revenues raised by the federal gas tax and directed to the Highway Trust Fund, which has both highway and mass transit accounts. $40 billion a year went to highways, most of which was used to expand and upgrade the Interstate highway system; some $10 billion went annually to mass transit.

The $10 billion in public transportation funds is distributed by the Federal Transit Administration (FTA) for a variety of uses. The FTA administers the urban areas program, which allocates money to metropolitan areas for transit system capital expenses, as well as a rural areas program that helps states pay for rural transit. SAFETEA-LU also included a fixed-guideways formula, aimed at keeping mostly older rail transit systems like those in Chicago or Boston in working condition. Finally, the New Starts/Small Starts program allowed the FTA to fund competitive grants for major capacity expansion such as new subway or bus rapid transit lines.

More of this...

 SAFETEA-LU provided for $40 billion in annual funding from the highway account, the traditional federal source for financing Interstate highways. But under the law, money from the account could actually be spent on more than just roads. Roughly $6.5 billion per year was allocated to the “Surface Transportation Program.” States were allowed to use this money to fund transit and “bicycle transportation and pedestrian walkways.” The “Congestion Mitigation and Air Quality Improvement Program” — about $1.7 billion a year — went to projects likely to reduce pollution, and specifically forbade funding “a project which will result in the construction of new capacity available to single occupant vehicles.”

There’s one problem, though. The federal government may allow such funds to be spent on non-auto uses, but that’s rarely the case.

That’s because, while each metropolitan area has a federally-mandated Metropolitan Planning Organization (MPO) whose role is to establish priorities for transportation investments, state departments of transportation have ultimate discretion over how national highway funds are used. The inevitable consequence? Asphalt-happy DOTs usually choose to invest highway funds in roads, even when MPOs advocate for improved transit or bikeways. According to Transportation for America, only five states — California, New York, Oregon, Pennsylvania, and Virginia — have taken advantage of the flexibility of these funds. The rest have spent the vast majority on auto infrastructure.

What’s more, SAFETEA-LU made it easy for states to build roads and hard for them to build transit projects. While funds for new roads were simply distributed to states based on a formula, new transit lines had to undergo the rigorous New Starts process — competing with other projects from all over the country — before winning a share of federal dollars. There was no such required audit for road projects.

In this image taken with a cell phone by Jason McLane, the primary presidential aircraft, a Boeing 747 known as Air Force One when the president is aboard, flies low over New York Harbor, followed by an F-16 chase plane during a federal government photo op Monday, April 27, 2009. A low-flying Boeing 747 escorted by two fighter jets as part of a federal government photo opportunity over lower Manhattan caused a brief panic among workers near ground zero on Monday. (AP Photo/Jason McLane) (Jason Mclane - AP)

(Source: Washington Post)

NEW YORK — A Boeing 747 used by the president was escorted over lower Manhattan by two Air Force fighter jets Monday as part of a government photo opportunity, causing a brief panic among office workers near ground zero.

(Source: New York Times)

Union leaders said Sunday that they had reached an agreement with Chrysler that meets federal requirements for the automaker to receive more financing.

The deal includes Fiat, the Italian automaker with which Chrysler was ordered by the government to form an alliance before Thursday.

Neither the United Automobile Workers union nor the company released details of the tentative agreement, which would modify the union’s 2007 contract and reduce the amount of money Chrysler must pay into a new health fund for retirees.

Image: New York Times

The union plans to have its 26,000 Chrysler workers vote on the deal by Wednesday.

Chrysler said the agreement, reached during marathon negotiations over the weekend, satisfied the requirements laid out by the Obama administration for a deal by an April 30 deadline.

Even with the agreement, Chrysler is expected to seek Chapter 11 protection, in a case mapped out by the government in advance, including safeguards meant to protect worker benefits, people with knowledge of the company’s plans said Sunday night.

A new company would be set up with the best assets of Chrysler, these people said. Fiat of Italy would own 20 percent to 35 percent of the new Chrysler, they said, with the government also holding a stake. Some of the equity in the new company would also be given to Chrysler’s creditors as repayment.

These people spoke on condition of anonymity because the deals had not been finalized.

The Treasury Department has also reached an agreement with Daimler of Germany, the former owner of Chrysler, to settle tax and other claims left over from its sale of Chrysler in 2007 to Cerberus Capital Management, the private equity firm.

In order to persuade the union to back the sale to Cerberus, Daimler agreed to pay $1 billion to Chrysler if the company’s pension plans were terminated in a subsequent bankruptcy filing. Details of the Treasury’s deal with Daimler were not available.

Last week, the union reached an agreement in principle with the administration and Chrysler that would protect workers’ pensions in the event of a bankruptcy filing and provide for a change in the financing of a health care trust set up in 2007.

Click here to read the entire article.

(Source: Autobloggreen)

According to Autocar in the UK, Scotland Yard has announced plans to replace half of its fleet of vehicles with either electric or air-powered vehicles within four years. We’re not sure what air-powered vehicles are being considered, but we’ve been hearing about the compressed air vehicle from MDI for the last few years at least.

There are already 140 or so Toyota Prius hybrid police cars currently in use by the Metropolitan Police Service and officers have been putting electric versions of the smart fortwo through their paces. Those two programs are expected to continue and grow. Nigel Jakubowski, head of transport services, says, “The uniformed officers who have driven them say they are very quick. We have installed charging points at the stations the cars are based in, and they work very well.”

 (Source: Autoblog & Detroit Free Press)

As in a basketball game when players are yanking on jerseys trying to block each other out under the basket, General Motors and Chrysler’s creditors have officially begun jockeying for position. 

Michigan’s Attorney General, Mike Cox, has sent letters to the CEOs at both companies to ask that, if they file for bankruptcy, they do it in Michigan. Why? Because that would be more convenient to the creditors that GM and Chrysler have in Michigan.

“I am gravely concerned about the impact of any bankruptcy filing in a jurisdiction outside Michigan,” Cox wrote in separate letters to GM CEO Fritz Henderson and Chrysler CEO Bob Nardelli. 

Cox goes on to say that the financial health of both companies and Michigan have been intertwined for decades.

The state is a significant creditor for each of the troubled automakers through the Michigan Business and Single Business Tax obligations, workers’ compensation claims, unemployment insurance and environmental regulations. 

“The costs for many of these creditors (in Michigan) to participate in a New York or Delaware bankruptcy is overwhelming and would undoubtedly lead to unjust bills,” Cox said.

While Cox does not say that either company should file for bankruptcy, neither does he acknowledge that they might not need to if they meet certain criteria set by the U.S. Treasury Department.

“If you ultimately decide to choose bankruptcy as the vehicle to a stronger (company), I respectfully ask that you and your representatives meet with me before any filing is made,” the letter concludes. “Please feel free to contact me at any time, day or night, to discuss this matter.”

(Source: Washington Post; USA Today & Airsafe.com)

 The people should have access to this kind of information

Department of Transportation is preparing to reject a proposal by the Federal Aviation Administration that would keep secret data about where and when birds strike airplanes.   Among the high-profile boosters of releasing the information is Transportation Secretary  Ray LaHood, whose agency oversees the FAA.  He said the comments ran “99.9 percent” in favor of making such information accessible.  

“I think all of this information ought to be made public, and I think that you’ll soon be reading about the fact that we’re going to, you know, make this information as public as anybody wants it,” LaHood said in an interview for The Washington Post’s “New Voices of Power” series. “The people should have access to this kind of information.

“The whole thing about the bird strike issue is it doesn’t really comport with the president’s idea of transparency,” the secretary said. “I mean, here they just released all of these CIA files regarding interrogation, and . . . the optic of us trying to tell people they can’t have information about birds flying around airports, I don’t think that really quite comports with the policies of the administration. . . . It’s something that somebody wanted to put out there to get a reaction. We got the reaction, and now we’re going to bring it to conclusion.”

Here is the Secretary’s interview to Washington Post’s Lois Romano on this issue:

 The FAA last month quietly posted a proposal in the federal register, requesting public comment, that would bar the release of its records on bird collisions. The proposal followed a prominent incident in January when a flock of geese brought down a commercial flight, forcing the pilot to make an emergency landing on the Hudson River. The agency immediately came under fire because the recommendation runs counter President’s Obama vows of government transparency.

For those interested in reading the FAA’ proposal on Federal register, here it is:

 Note: TransportGooru appreciates the Sec. of Transportation’s stand against this move by FAA.  Public have the right to know and it is not nice that FAA can withhold  sharing this data, even after the overhwleming public response.

(Source: Washington Post)

“Police could not reasonably have believed either that Gant could have accessed his car at the time of the search or that evidence of the offense for which he was arrested might have been found therein,” Stevens wrote.

Justice Samuel A. Alito Jr., writing for the four dissenters, said the court’s insistence that its precedents had been misinterpreted was simply a cover for getting rid of a decision with which it disagreed.

(Source:  Assosicated Press & Union Leader)

 Sgt. Paul Thompson was on routine patrol early Monday when he noticed a car stopped at a red light at the intersection of Bridge and Union streets in Manchester, N.H.  The car didn’t move when the light turned green. So the police officer checked it out and found the driver asleep at the wheel, with one foot still on the brake. The 22-year-old driver, Victoria LaGrange, eventually woke up, showing signs of intoxication, and was arrested Monday on a charge of aggravated driving while intoxicated, the New Hampshire Union Leader reported.

 (Source: Fox 10 News via Jalopnik)

Rage against cameras taken to another level