PROCEEDINGS: CONFERENCE ON INTERCITY BUS TRANSPORTATION. REMARKS OF SANFORD REDERER

The ICC is proposing a balanced approach to regulatory reform of the intercity bus industry. Their philosophy is to encourage more competition. This means less reliance on regulation, on rate bureaus, and on intercompany cooperation to establish fares and service. There are alternatives to the rate bureau system. A more limited antitrust immunity specifically for that purpose seems to be sufficient in other industries. The airline industry, for instance, never had a rate bureau system; interline contracts and fare divisions are negotiated on a company-by-company basis. The bus industry is not dissimilar from the trucking industry. The units of productive capacity have similar attributes of size, cost, and mobility, and there are similar problems resulting from the long history of regulation. The industry would benefit from coordinated federal and state regulation of entry, exit, and rates. A bill similar to the Motor Carrier Act of 1980 would produce the best regulatory reform for the bus industry. (Author)