It appears the debate isn't over...
Layoffs, car-rental decline fuel shuttle debate
But airlines say free Disney buses ease crowding
Beth Kassab | Sentinel Staff Writer
Posted October 11, 2005
Beeline Ground Transportation, one of two companies with shuttle concessions at Orlando International Airport, said Monday it would lay off as many as 20 people this week as it struggles to compete with Disney's Magical Express.
Mears Transportation Group, Beeline's competitor, holds the contract to operate Magical Express, a free shuttle service to and from the giant Walt Disney World resort.
Beeline is the latest in a string of companies that have complained Magical Express is hurting business with what they consider to be a sweetheart deal involving Disney, Mears and the airport.
While passengers and airlines applaud the service as a hassle-free way to travel between the airport and Disney World, airport executives say they are studying the free shuttle's effect on the airport's bottom line.
Michael Gerloven, Beeline's general manager, said the company did not know about Magical Express when it began operating at the airport about nine months ago.
"Business is less than half of what we anticipated," Gerloven said. "We based our numbers on the airport's projections pre-Disney Magical Express."
The latest airport figures indicate that other transportation businesses may be hurting as well.
Figures show that rental-car sales at the airport have been declining -- as much as 5 percent in June -- despite an overall increase in passengers using the airport.
The decline started in April, a month before Magical Express began. However, Disney tested portions of the program in April. "We're trying to analyze what the numbers are really telling us," OIA Executive Director Bill Jennings said. "There could be a number of reasons why rental-car revenue is down."
Jennings said he hopes to have a better sense of the shuttle's effect within two months.
In the meantime, he's been forced to fend off criticism that Disney was granted unfair access to passengers in the airport's main terminal.
Disney's greeters have been allowed access to areas of the terminal off-limits to other transportation companies. Jennings recently ordered that the practice must be halted by the end of the month.
Disney Senior Vice President Jerry Montgomery said the practice of greeting passengers on the terminals third, or upper, level accounted for only about 2 percent of the shuttle's total passenger load.
About 5,000 people ride Magical Express every day, Montgomery said.
He said the program is helping the airport run more smoothly and is reducing traffic on Central Florida's congested roads, with busloads averaging 37 people.
In addition, he said, airport security and airlines benefit from the off-site screening of luggage that is transported by Magical Express.
The buses have flat-screen televisions that show passengers videos about the airport, including a commercial that promotes airport food and retail shops because passengers arrive for their flights about two hours early on Magical Express.
Airlines also have lauded the program, saying it's already being repeated elsewhere in the country.
"We've seen an improvement in the congestion in our lobby," said Josh Weiss, Delta Air Line's director of customer-service operations and strategy.
American Airlines' Mark Mitchell said the service helps passengers move through check-in lines faster.
"It's running way above expectations," he said.
But criticism from taxi and luxury-sedan drivers is expected to peak at a rally planned for later this week.
Last week, a group of taxi drivers staged a strike to draw attention to how they say their businesses have been crippled by the service. Taxi fares from the airport to Disney run at least $40, making it hard to compete against Disney's free shuttle.
Layoffs, car-rental decline fuel shuttle debate
But airlines say free Disney buses ease crowding
Beth Kassab | Sentinel Staff Writer
Posted October 11, 2005
Beeline Ground Transportation, one of two companies with shuttle concessions at Orlando International Airport, said Monday it would lay off as many as 20 people this week as it struggles to compete with Disney's Magical Express.
Mears Transportation Group, Beeline's competitor, holds the contract to operate Magical Express, a free shuttle service to and from the giant Walt Disney World resort.
Beeline is the latest in a string of companies that have complained Magical Express is hurting business with what they consider to be a sweetheart deal involving Disney, Mears and the airport.
While passengers and airlines applaud the service as a hassle-free way to travel between the airport and Disney World, airport executives say they are studying the free shuttle's effect on the airport's bottom line.
Michael Gerloven, Beeline's general manager, said the company did not know about Magical Express when it began operating at the airport about nine months ago.
"Business is less than half of what we anticipated," Gerloven said. "We based our numbers on the airport's projections pre-Disney Magical Express."
The latest airport figures indicate that other transportation businesses may be hurting as well.
Figures show that rental-car sales at the airport have been declining -- as much as 5 percent in June -- despite an overall increase in passengers using the airport.
The decline started in April, a month before Magical Express began. However, Disney tested portions of the program in April. "We're trying to analyze what the numbers are really telling us," OIA Executive Director Bill Jennings said. "There could be a number of reasons why rental-car revenue is down."
Jennings said he hopes to have a better sense of the shuttle's effect within two months.
In the meantime, he's been forced to fend off criticism that Disney was granted unfair access to passengers in the airport's main terminal.
Disney's greeters have been allowed access to areas of the terminal off-limits to other transportation companies. Jennings recently ordered that the practice must be halted by the end of the month.
Disney Senior Vice President Jerry Montgomery said the practice of greeting passengers on the terminals third, or upper, level accounted for only about 2 percent of the shuttle's total passenger load.
About 5,000 people ride Magical Express every day, Montgomery said.
He said the program is helping the airport run more smoothly and is reducing traffic on Central Florida's congested roads, with busloads averaging 37 people.
In addition, he said, airport security and airlines benefit from the off-site screening of luggage that is transported by Magical Express.
The buses have flat-screen televisions that show passengers videos about the airport, including a commercial that promotes airport food and retail shops because passengers arrive for their flights about two hours early on Magical Express.
Airlines also have lauded the program, saying it's already being repeated elsewhere in the country.
"We've seen an improvement in the congestion in our lobby," said Josh Weiss, Delta Air Line's director of customer-service operations and strategy.
American Airlines' Mark Mitchell said the service helps passengers move through check-in lines faster.
"It's running way above expectations," he said.
But criticism from taxi and luxury-sedan drivers is expected to peak at a rally planned for later this week.
Last week, a group of taxi drivers staged a strike to draw attention to how they say their businesses have been crippled by the service. Taxi fares from the airport to Disney run at least $40, making it hard to compete against Disney's free shuttle.
I don't necessarily think the $1.00 increase in parking went to DME either, but it was just an example as to how Disney could cover the costs of DME without blatantly charging for it, if they wanted to.
