University Daily Kansan / Thursday, January 15. 1987
9A
KCC turns down Trailways application
United Press International
TOPEKA — The Kansas Corporation Commission, stymied by a history of reversals at the federal level, Wednesday rejected Trailways Lines' application to discontinue nearly all bus service in Kansas.
Anticipating another reversal by the Interstate Commerce Commission, KCC Chairman Michael Lennen criticized "often mindless and always dogmatic adherence to deregulation." He called the Reagan administration policy of sweeping deregulation of transportation and utilities an assault on essential services to rural Kansas.
In rejecting the bus route abandonment, the KCC recommended an alternative by the KCC staff, suggesting that Trailways institute cost-saving measures, including reduced service and abandonment of an Interstate-70 route that duplicates a Greyhound Bus Lines route. The commission says that would help keep the routes profitable. Trailways seeks to abandon all but its Kansas City-Topeka-Wichita routes on grounds it is losing money.
The action by the Kansas regulator is seen as a mere prelude to ICC action on the matter. Trailways already has filed with the ICC, asking the federal agency to take jurisdiction away from the state agency
In seven previous bus route abandonment cases, the KCC has been overruled by the ICC under the federal Bus Regulatory Act.
"In the zeal to deregulate, someone, perhaps Congress or federal regulatory agencies, forgot that we had been given the infrastructure," Lennen said.
The chairman said it was naive and intellectually dishonest to think that the free market system could maintain essential services in rural areas.
Lernen criticized Trailways also for doing little to prevent deterioration of its financial situation, until the time came to abandon routes.
"The decision to move to abandon service in Kansas and other areas seems to be a product of something resembling panic rather than planning." he said.
He called Trailways a company with little, if any, understanding of marketing its service and little commitment to doing so.
Abandonment of the Trailways routes would mean virtually no major bus service to most of Kansas. Greyhound has a route from Kansas City to Denver on I-70.
The proposal eliminates service to 62 of the 75 cities the bus company serves on grounds it has operating losses on most of its Kansas routes. Forty of those would be left with no intercity bus service from any company.
The staff proposal recommended by the commission said Trailways should retain five basic routes it wanted to abandon, reduce service by eliminating some runs, provide service less than once a day and make changes in some of its routes. The proposal would retain service to all 40 of the Kansas communities that otherwise would lose intercity bus service.
The commission determined that on all the routes in question, except two Wichita-to-Lincoln, Neb., routes. Trailways' variable costs would be less than revenues. Commissioners contended that indicates Trailways still had a fighting chance to maintain profits.
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