Saturday, July 18, 2015

Crony capitalism: winning through superior lobbying dollars

Not sure what it is about transportation policy and crony capitalism, but Reason gives another example of Peter Pan busing, working to put Fung Wah in NYC/Boston out of business:

Eleven years later, Peter Pan's move against Fung Wah is paying big dividends. Fung Wah has long been one of the best-operated and safest bus operators on the road, and yet two years ago it was forced to halt its operations because of an incompetent safety inspection carried out by two Massachusetts state employees. That ensnared the company in federal regulatory maze of Kafka-esque proportions. Twenty-one months later, after the company had burned through $3 million buying a new fleet of buses, paying lawyer's fees, and keeping its doors open, Fung Wah finally got the OK to reopen.

Not so fast. As the Boston Globe first reported in May, the two state agencies that run Boston's South Station are refusing to give Fung Wah a spot in the facility to resume its operations. And this week, DNA Info reported that New York City Councilwoman Margaret Chin (D-Dist. 1) was told by Fung Wah's Liang that he was throwing in the towel. If the company were permitted to operate from a street curb, like in practically every other city, this wouldn't be an issue.

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