DeCamp Bus Lines is shutting down commuter service again on Friday, after restarting in June as restrictions to reduce the spread of the coronavirus started to be lifted.
But not enough commuters came back, even enough to cover the cost of running buses, said Jonathan DeCamp, vice president and chief operating officer of the Essex County-based bus company.
DeCamp’s problems are a microcosm of the $11 billion loss experienced by private bus companies nationwide. Unlike airlines and public transit, private bus companies weren’t included in the initial CARES act, which allocated $1.4 billion in May to help NJ Transit cover revenue losses.
“We resumed service in June to build the commuter base, unfortunately, the commuters haven’t returned,” DeCamp said.
Normally, DeCamp carries 5,500 to 7,000 commuters a day, but last week “we were lucky to have 400 fares” for one day, he said.
“Carrying that number of fares is not covering the operating expenses of running coaches, so we made the decision to suspend service and push for a reopening in the future, when people start commuting again, DeCamp said.
DeCamp’s second service suspension highlights a deeper problem for private bus carriers, which depend on charter work for groups to support commuter services. The coronavirus pretty much killed that part of the business, said motor coach industry officials
Many of the companies are “mom and pop” businesses, said Tim Stout, president of Greater New Jersey Motor Coach Association and owner/president of Stout’s Transportation in Trenton.
Unlike the airlines and public transit, private bus companies didn’t receive federal funds from the CARES act, even though their businesses shut down in mid-March, he said. While commuter ridership fell by more than 90% for NJ Transit bus, private carriers lost charter work for scholastic sports, school trips and groups chartering buses to tourist destinations
DeCamp said the company’s business consists of 75% commuter service and 25% charter bus trips. Coronavirus decimated the charter business as much as it reduced commuter ridership.
“All the destinations closed. All the charters on the books were canceled, no one was traveling,” DeCamp said.
Other bus companies in the state and nation faced the same grim prospects, Stout said. A caravan of motor coach and charter buses converged on Washington D.C in May to dramatize the need for federal help, he said.
That aid might come in the Coronavirus Economic Relief for Transportation Services Act, proposed by U.S. Senators Jack Reed, D-Rhode Island and Susan Collins, R-Maine, in July. That could provide up to $10 billion in emergency aid to bus and other transportation companies not covered under the CARES act.
The American Bus Association estimates that the industry lost $11 billion, a 71 percent decline in annual business, due to COVID-19.
Even if restrictions are lifted that would allow Broadway theaters, sports arenas and other tourist destinations to reopen, social distancing onboard buses would be an issue that could reduce business.
“Even if charters come back, will people be comfortable getting on a bus with 50 people?” DeCamp said.
Social distancing would cut bus capacity to 20 and he questioned if groups would pay for two buses to maintain that precaution. Meanwhile, bus companies have few business prospects.
“Our company employs 55 employees. We (initially) shut down on March 15, colleges and universities canceled spring sports,” Stout said. “Once we heard the military restricted non-essential travel, that was it.”
Before COVID-19 hit, DeCamp employed 155 to 160 full and part time employees. As of Friday after midnight, that will be reduced to a skeleton staff of two, DeCamp said.
“We didn’t make this decision lightly. l understand the effect on our customers,” DeCamp said. “I wish we could run, but it’s not feasible. We’ll do everything in our power to get back.”
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Larry Higgs may be reached at lhiggs@njadvancemedia.com.
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