In Loudenslager's 11 years as director (1973-1984), the Capital Area Transportation Authority (CATA) became widely recognized as one of the best in Michigan and in the country. Ridership in the Lansing area increased more than fivefold, and routes served by its modern bus fleet nearly doubled. He led in winning public approval of a one-mill property tax to support the system, creating a model for many other systems throughout the country. He secured the first federal discretionary grant for construction of a maintenance terminal and management facility. As a leader of the Michigan Public Transit Association, including two terms as president, his role was critical in state legislation, ranging from earmarking tax revenue for public transit to bond issues upgrading municipal bus fleets statewide.