NY Waterway in Financial Trouble, May Sue US Airways

Photograph of a NY Waterway ferry picking up passengers from Flight 1549 by Bebeto Matthews/AP

When US Airways Flight 1549 crash- (or splash-) landed in the Hudson River on January 15, the first boats to arrive and offer help were NY Waterway ferries, which ultimately took 142 of the 155 passengers and crew from the cold water. Now, the ferry company says it may go bankrupt by the end of the year. And, Crain's reports, "Its situation is so precarious that the company is preparing a lawsuit against US Airways to recoup the expenses it incurred during the rescue effort."

The ferry line's ridership has dropped 12% (February 2009 vs. February 2008) and its revenue has fallen by $800,000/month; also, its equipment loan isn't being renewed. CEO Arthur Imperatore Sr. says, “We are embattled" and tells Crain's that the company should be acquired by a public transit agency, like the Port Authority, since it's a mass transit option. And U.S. Coast Guard official Captain Robert O'Brien said, "They are generally the Good Samaritan that responds to any emergency on the water"—notably, during the 2003 blackout, NY Waterway transported 150,000 people out of Manhattan for free (that's over $500K in fares).

Riders want the company to stay open, but had different ways of conveying that to NY1: One said, "My ride is very convenient as it takes about eight minutes to get across the water. So I would hope that they don't go bankrupt," while another said, "I'm just tired of people crying bankruptcy and everything else. They just need to get a grip and get to work."

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By Jen Chung in News on March 16, 2009 3:31 PM

Comments [rss]

Sassy Lou

WTF..the price to ride it BOTH ways... in ONE DAY is $18. That's $390 a month.

Ridership has dropped because its TOO DAMN HIGH! Just like the RENT!!! and I agree...it needs to be absorbed and subsidized into the public system under a NOT FOR PROFIT system.

There are almost no riders on it. I just took it today and it was NOT even 20% full at rush hour. It's a shame. Even as a New Yorker that lives in Manhattan..I had to use it for the first time for a one time use. It was a very lovely Terminal in Weehauken with a bar and sushi restaurant right in the terminal with a beautiful view of the city.. If I wanted to take the 5 min boat ride and have dinner for two..the cost for just two people to go and come back would be almost $40 JUST for the ride alone.....to NEW JERSEY no less!!!

Look....my message to NY Waterway....Drop the price to $4 one way. You will see people FLOCKING to it..just for the ride and possible commerce on the other side. Maybe offer a free ride for people who bring a validated receipt of meal or purchase of something. It's a waste as the boat leaves at 20% occupancy. WASTE!

nik13

If I recall correctly, Imperatore tried to charge for services rendered during the blackout & only the public outcry forced him to back off. 10 years ago, his estranged wife was robbed of 170K in cash. Happened a few blocks from my house. Petty cash, I think.

Snoopy

Imperatore. That name sounds familiar. Wasn't that name hooked up to some political or crime family or carting shenanigans about twenty years ago?

Spiritof76 should know. He knows everything.

Snoopy

What does spiritof76 think about all this? He knows everything about everything.

Should they sue or not? Should they be taken over by someone else? Should the people that use the service just grin and bear it like most people did before this kind of funky transportation idea got started. Please inform us.

ed_Extinct

This geese/duck thing should be a good case to increase Foie gras production.

Rocknrope

"the company is preparing a lawsuit against US Airways to recoup the expenses it incurred during the rescue effort

Stay classy, NY Waterway.

Using those 2003 blackout figures, transporting 150,000 people cost them $500,000 in fares. So transporting those 143 people from the downed aircraft cost, oh, $480 bucks. Well worth the lawsuit.

Even if they account for lost revenue due to the preoccupied boats, how much could that amount to? Another 1MM? After legal fees, will that really stave off bankruptcy?

No good deed ever goes unpunished.

ides_of_march

The airline gave this ferry company the kind of p.r. you can't even buy. It does seem tacky to demand money for having helped to save lives. If ridership is down it's because people are leaving NYC for states where they don't get the crap taxed out of them.

dr zippy

If ridership is down it's because people are leaving NYC for states where they don't get the crap taxed out of them.

The decrease in riders has nothing to do with people leaving New York. In case you hadn't heard there is a recession. When a recession happens a lot of people lose their jobs. Without jobs people have nowhere to commute to. Thus ferry ridership, like subway ridership, bus ridership, automobile and truck traffic decrease.

So, once again Ides you have made an assertion that fits your political agenda but is at variance with reality. Don't you get tired of lying like this? Are you really so lazy that you can't think of a hard to refute lie? What is your goal in constantly presenting disinformation that is so easily disproven?

Jersey Cityist

The reverse is true, MORE people have been taking public transportation instead of driving. LESS people have been taking NY waterways.

The problem is that the Ferry is EXPENSIVE ....at least 7 dollars to cross the Hudson river to Manhattan I think, while the PATH subway is 1.75 or less. The PATH train runs every few minutes 24 hours a day, while the ferry doesn't run 24 hours.

Plus the ferry drops you off on 12 avenue in Midtown, or at the terminal downtown and then you have to take a bus or a really long walk to get to the Subway or work.

whitecastlerock

Sue Canada-they are responsible for the geese that flew into the engines. Sue the plane manufacturer for not making bird proof engines. Sue the passengers for needing to be rescued. Sue riders for implying their transportation is convenient. Sue Anheiser Bush for using a bird image in their logo. Birds flew into the engines of the plane that crashed in the Hudson. Sue Jackie Mason for telling bad jokes

moocowtoo

>notably, during the 2003, NY Waterway transported 150,000 people out of Manhattan for free

During the 2003 blackout. Should be included in the article above.