Cuts hit LV taxi, baggage firms

Thursday, Sept. 20, 2001 | 10:49 a.m.

The economic chaos crippling the transportation and resort industries following last week's terrorist attacks is now affecting the Las Vegas taxicab and baggage handling industries.

Cab companies have begun pulling some of their cars off the streets and drivers accustomed to making $200 a shift are now making about $80 with the airport seeing fewer passengers, conventions and meetings being canceled and uneasy tourists staying home.

Another support industry, remote air passenger check-in, also has been devastated -- leading Henderson-based Certified Airline Passenger Services to announce 60 layoffs.

The job cuts -- half the entire CAPS staff -- were effective Tuesday but announced today. Most of the 60 employees who remain have had their hours cut.

Jim Gentleman, vice president of marketing for two-year-old CAPS, said those who remain are now working for CAPS' sister operation, American Baggage Co., which is allowed to transport luggage from the airport to resorts. Gentleman said that operation is running at about 20 percent to 30 percent of normal because many customers have canceled their trips to Las Vegas. Also, some customers, many of them charter companies, have canceled their contracts with ABC because it is only able to transport from the airport and not to it.

Gentleman said CAPS executives are lobbying with congressional leaders for a piece of a proposed $17.5 billion aviation bailout package. The company also is in talks with the FAA to get an exemption allowing it to continue operations.

New Federal Aviation Administration regulations tightening security at airports nationwide resulted in the suspension of all remote baggage check-in services, including curbside check-ins. That led to CAPS, which has check-in 15 counters at 14 resorts and a car rental company, suspending operations last week.

When it operated prior to the Sept. 11 terrorists attacks, customers flying on 10 different partnering airlines handed off their bags at the CAPS counters at one of 15 resort and one car rental office locations and were able to obtain a boarding pass for a flight. The service, certified by the FAA, was promoted as a means to reduce airport congestion.

Meanwhile, Las Vegas' 16 cab companies are pulling cars off the street in response to an estimated 40 percent downturn in business.

Taxicab Authority Administrator John Plunkett said his regulators will consider suspending three temporary licenses per company that were approved earlier this year, but that his staff supports the voluntary cab reduction.

Under the voluntary reduction, cab companies aren't firing drivers, but are not calling part-time and standby drivers in for any shifts. They're also encouraging regular drivers to take vacation time during the slow period.

Many of the city's 4,600 licensed cab drivers have decided not to work now, since the number of customers and fares are off by 80 percent. Plunkett said many drivers would rather dip into savings and take time off now than to work a regular shift for less than half of what they normally make.