Nevada Taxicab Authority decides to hold rates, permits stable

Las Vegas taxi companies, amid flagging industry indicators and complaints of too many taxis on Las Vegas streets, decided at an annual review on Monday not to seek permits for more cabs.

In doing so, owners skirted vocal confrontations with drivers that erupted several times in the past year over additional cabs.

As a result, the Nevada Taxicab Authority on Monday voted to go another year without issuing any new permits, called medallions. This came against a backdrop of August statistics that showed the industry suffering declines in several key performance measures.

“There are certain days when there are probably too many cars on the street,” said George Balaban, owner of Desert Cab. “There are also days when we could use extra cars, like Friday and Saturday nights.”

Although the five-member authority sets only one medallion review annually, companies can bring it up on their own at other times. Frias Transportation Management, which owns five of the valley’s 16 brands, raised the possibility in papers filed with the authority that it would follow this course in December.

Driver Kevin Wilson noted at the meeting at Cashman Center that one company hired an economic consultant who justified the medallions that were added last year on predictions of a resurgent visitor industry.

“As you know, that boom never happened,” Wilson said.

According to Las Vegas Convention and Visitors Authority statistics, visitor totals have climbed only 1.9 percent during the seven months through July compared to the same period last year. This includes small declines in two of the past four months.

Through August, cab companies saw revenues rise 4.1 percent to $267.8 million, thanks to higher fares. But the revenue per medallion and trips per medallion have both declined, leading drivers to angrily denounce the decision last year to create medallions. They say the new medallions have diluted their income, and many have complained that they earn less than minimum wage during slow times during the week.

Currently, there are 2,409 medallions. But the time, day and geographic restrictions attached to some medallions limit the number of cabs available to pick up passengers on the Strip and at McCarran International Airport to a maximum of 1,737.

The authority also kept in place the current rate structure for another year.

In an unrelated matter, negotiators for the United Steelworkers said they are still far apart in contract talks with Frias. The collective bargaining agreement expired Sept. 11 and it is now being extended one day at a time.

Bargaining unit president Yonas Tessema said the long-standing seniority preference when drivers bid for preferred shifts and newer cars has emerged as a sticking point even before turning to economic issues. While drivers want to keep seniority unchanged, the company wants to substantially reduce its role, he said.

Frias chief operating officer John Hickman declined to comment.