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Pittsburgh Business Times Quotes David Coburn on Intrastate Bus Rates

March 3, 2011

The Pittsburgh Business Times quoted David Coburn in an article titled “Megabus Battling with PUC over Intrastate Service Rates.”  The article examined the Pennsylvania Public Utility Commission’s denial of a bus company’s application for intrastate service based on its rate structure, which uses a model similar to hotels and airlines to change rates according to how full the bus gets.

Mr. Coburn, partner at Steptoe & Johnson LLP in Washington and outside counsel for Megabus, says pegging an exact ticket price per passenger is impossible.

“They want to know what any particular passenger will pay, and with yield management pricing, the answer is, 'It depends,'" he said.  "That's the way this kind of pricing works. It's very common."

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