[Federal Register Volume 63, Number 223 (Thursday, November 19, 1998)]
[Notices]
[Pages 64312-64314]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-30982]
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DEPARTMENT OF TRANSPORTATION
Surface Transportation Board
[STB Docket No. MC-F-20931, et. al.] 1
Coach USA, Inc., and Coach USA North Central, Inc.--Control--Nine
Motor Passenger Carriers; Notice Tentatively Approving Finance
Transactions
AGENCY: Surface Transportation Board.
ACTION: Notice tentatively approving finance transactions.
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SUMMARY: Coach USA, Inc. (Coach), a noncarrier, and its wholly owned
noncarrier subsidiaries, Coach USA North Central, Inc. (North Central),
Coach USA Northeast, Inc. (Northeast), Coach USA South Central, Inc.
(South Central), Coach USA Southeast, Inc. (Southeast), Coach USA West,
Inc. (West), and Yellow Cab Service Corporation (Yellow Cab Service)
(collectively, the subsidiaries), filed applications under 49 U.S.C.
14303 for the subsidiaries to acquire direct control of motor passenger
carriers that are currently controlled by Coach or are subject to
pending applications for control. The control applications that are the
subject of this notice are in furtherance of an internal corporate
reorganization plan by Coach. Persons wishing to oppose the
applications must follow the rules under 49 CFR 1182.5 and
1182.8.2 The Board has tentatively approved the
transactions, and, if no opposing comments are timely filed, this
notice will be the final Board action.
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\1\ These proceedings are not consolidated. A single decision is
being issued for administrative convenience.
\2\ Revised procedures governing finance applications filed
under 49 U.S.C. 14303 were adopted in Revisions to Regulations
Governing Finance Applications Involving Motor Passenger Carriers,
STB Ex Parte No. 559 (STB served Sept. 1, 1998).
DATES: Comments must be filed by January 4, 1999. Applicants may file a
reply by January 19, 1999. If no comments are filed by January 4, 1999,
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this notice is effective on that date.
ADDRESSES: Send an original and 10 copies of any comments referring to
STB Docket No. MC-F-20931, et al. to: Surface Transportation Board,
Office of the Secretary, Case Control Unit, 1925 K Street, N.W.,
Washington, DC 20423-0001. In addition, send one copy of comments to
applicants' representatives: Betty Jo Christian and David H. Coburn,
Steptoe & Johnson LLP, 1330 Connecticut Avenue, N.W., Washington, DC
20036.
FOR FURTHER INFORMATION CONTACT: Beryl Gordon, (202) 565-1600. [TDD for
the hearing impaired: (202) 565-1695).]
SUPPLEMENTARY INFORMATION: With the growth in the number of Coach-
controlled carriers, Coach has determined that it can best maintain and
improve the management of its controlled operating carriers, and
promote the future growth of Coach, by establishing noncarrier
subsidiaries, organized primarily on a regional basis,3
[[Page 64313]]
that will directly control the existing and future operating carriers
of Coach.4 The transfer of control of each of the motor
passenger carriers to one of the subsidiaries will be by a transfer of
the ownership interest in each operating carrier (either the stock of
the carrier or the stock of the carrier's parent) to the respective
subsidiary. Coach will remain the sole owner of all of the stock of the
subsidiaries and will indirectly control the operating carriers,
providing certain management, corporate and administrative services and
benefits to the subsidiaries. Coach submits that there will be no
transfer of any federal or state operating authorities held by any of
the carriers to be acquired by the subsidiaries and that they will
continue operating in the same manner as before the acquisitions of
control. Accordingly, Coach asserts that granting the application will
not reduce competitive options available to the traveling public.
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\3\ Yellow Cab Service is the exception. It will control those
operating carriers that focus their services on premium, taxicab,
and other specialized transportation services, rather than carriers
in a specific region of the country.
\4\ In addition to the instant applications, Coach states that
it plans to file another application jointly with Coach Canada,
Inc., pursuant to which that subsidiary will seek approval to
acquire control of Coach-controlled motor passenger carriers based
in Canada.
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Coach submits that granting the application will allow the
subsidiaries to maintain and improve the high quality of services that
are now offered by Coach to each of the operating carriers it controls.
According to Coach, by further decentralizing certain management
functions, Coach and its subsidiaries will be better able to plan
equipment utilization, develop financial plans and coordinate other
short-and long-term operational strategies best designed to meet the
specific and unique needs of the carriers assigned to each subsidiary,
and their customers. Specifically, each subsidiary will maintain a
database of assets, including the vehicles operated by each of the
operating carriers, which will allow management to more effectively
deploy vehicles, resulting in more timely and efficient service to the
traveling public. Further, each of the subsidiaries will coordinate the
safety and compliance programs of the carriers it controls, with the
object of maintaining and raising safety performance levels for each of
the operating carriers.
In STB Docket No. MC-F-20931, North Central will be responsible for
Coach-controlled carriers that are based in the following states or
areas: Illinios, Indiana, Iowa, Kentucky, Michigan, Minnesota,
Nebraska, North Dakota, Ohio, South Dakota, western New York, western
Pennsylvania, West Virginia, and Wisconsin. North Central seeks control
of the following nine \5\ motor passenger carriers: Airlines
Acquisition Company, Inc., d/b/a Airlines Transportation Company (MC-
223575); Blue Bird Coach Lines, Inc. (MC-108531); Butler Motor Transit,
Inc. (MC-126876); Gad-About Tours, Inc. (MC-198451); Keeshin
Transportation, L.P. (MC-263222); Keeshin Charter Services, Inc. (MC-
118044); Lenzner Transportation Management Services d/b/a Lenzner Coach
Lines (MC-237433); Niagara Scenic Bus Lines, Inc. (MC-30787); and
Wisconsin Coach Lines, Inc. (MC-123432).\6\
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\5\ On October 21, 1998, Coach and North Central filed a
separate application for the control of two additional carriers in
Coach USA, Inc., and Coach USA North Central, Inc.--Control--Central
Cab Company and Mountaineer Coach, Inc., STB Docket No. MC-F-20939.
\6\ In Coach USA, Inc.--Control--Clinton Avenue Bus Company;
Orange, Newark, Elizabeth Bus, Inc.; and Wisconsin Coach Lines,
Inc., STB Docket No. MC-F-20930, Coach seeks an exemption to acquire
control over Clinton Avenue Bus Company, Orange, Newark, Elizabeth
Bus, Inc., and Wisconsin Coach Lines, Inc. A notice was served and
published in the Federal Register (63 FR 51397) on September 25,
1998, instituting an exemption proceeding. Comments were due by
November 9, 1998.
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In STB Docket No. MC-F-20932, Northeast will be responsible for
Coach-controlled carriers that are based in the following states or
areas: Connecticut, Delaware, eastern New York, eastern Pennsylvania,
Maine, Maryland, Massachusetts, New Hampshire, New Jersey, Rhode
Island, Vermont, and Washington, DC. Northeast seeks control of the
following 30 7 motor passenger carriers: Brunswick
Transportation Company, d/b/a The Maine Line (MC-109495); Cape Transit
Corp. (MC-161678); Chenango Valley Bus Lines, Inc. (MC-141324); Clinton
Avenue Bus Company (MC-223062),8 Colonial Coach Corp. (MC-
39491); Community Coach, Inc. (MC-76022); Community Transit Lines, Inc.
(MC-145548); GL Bus Lines, Inc. (MC-180074); Gray Line Air Shuttle,
Inc. (MC-218255); Gray Line New York Tours, Inc. (MC-180229); H.A.M.L.
Corp. (MC-194792); Hudson Transit Corp. (MC-133403); Hudson Transit
Lines, Inc. (MC-228); International Bus Services, Inc. (MC-155937);
Leisure Time Tours (MC-142011); Mini Coach of Boston (MC-231090);
Olympia Trails Bus Co., Inc. (MC-138146); Orange, Newark, Elizabeth
Bus, Inc. (MC-206227); 9 Pawtuxet Valley Bus Lines (MC-
115432); Progressive Transportation Services, Inc. (MC-247074); Red &
Tan Tours, Inc. (MC-162174); Red & Tan Charter, Inc. (MC-204842);
Rockland Coaches, Inc. (MC-29890); Suburban Trails, Inc. (MC-149081);
Suburban Transit Corp. (MC-115116); Suburban Management Corp. (MC-
264527); Syracuse & Oswego Coach Lines, Inc. (MC-117805); The Arrow
Line, Inc. (MC-1934); Utica-Rome Bus Co., Inc. (MC-7914); and Van
Nortwick Bros., Inc. (MC-149025).
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\7\ On October 21, 1998, Coach and Northeast filed a separate
application for the control of one additional carrier in Coach USA,
Inc., and Coach USA Northeast, Inc.--Control--Bonanza Bus Lines,
Inc., STB Docket No. MC-F-20937.
\8\ See supra note 6.
\9\ See supra note 6.
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In STB Docket No. MC-F-20933, South Central will be responsible for
Coach-controlled carriers that are based in the following states or
areas: Arkansas, Kansas, Louisiana, Mississippi, Missouri, New Mexico,
Oklahoma, Tennessee, and Texas. South Central seeks control of the
following eight motor passenger carriers: Americoach Tours, Limited
(MC-212649); Bayou City Coaches, Inc. (MC-245246); Browder Tours, Inc.
(MC-236290); El Expreso, Inc. (MC-244195); Gulf Coast Transportation,
Inc. (MC-201397); Kerrville Bus Company, Inc. (MC-27530); Stardust
Tours, Inc., d/b/a Gray Line Tours of Memphis (MC-318341); and Texas
Bus Lines, Inc. (MC-37640).
In STB Docket No. MC-F-20934, Southeast will be responsible for
Coach-controlled carriers that are based in the following states or
areas: Alabama, Florida, Georgia, North Carolina, South Carolina, and
Virginia. Southeast seeks controls of the following seven motor
passenger carriers: Air Travel Transportation, Inc., d/b/a Atlanta
Airport Shuttle and Atlanta Airport Shuttle, Inc. (MC-166420); America
Charters, Ltd. (MC-153814); American Sightseeing Tours, Inc. (MC-
252353); Le Bus, Inc. (MC-210900); P&S Transportation, Inc. (MC-
255382); Tippett Travel, Inc., d/b/a Marie's Charter Bus Lines (MC-
174043); and Tucker Transportation Company, Inc. (MC-223424).
In STB Docket No. MC-F-20935, West will be responsible for Coach-
controlled carriers that are based in the following states or areas:
Arizona, California, Colorado, Hawaii, Idaho, Montana, Nevada, Oregon,
Utah, Washington, and Wyoming. West seeks control of the following 14
motor passenger carriers: Airport Bus of Bakersfield (MC-163191);
Antelope Valley Bus, Inc. (MC-125057); Arrow Stage Lines, Inc. (MC-
29592); Black Hawk-Central City Ace Express, Inc. (MC-273611);
California Charters, Inc. (MC-241211); Desert Stage Lines, Inc. (MC-
140919); Grosvenor Bus Lines, Inc. (MC-157317); K-T Contract Services,
Inc. (MC-218583); Gray Line Tours of Southern Nevada, Inc. (MC-127564);
PCSTC, Inc. (MC-184852); Powder
[[Page 64314]]
River Transportation Services, Inc. (MC-161531), Salt Lake Coaches,
Inc. (SLC); 10 Valen Transportation, Inc. (MC-212398); and
Worthen Van Service, Inc. (MC-142573).
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\10\ Coach states that SLC does not yet hold federally issued
operating authority but has filed an application with the Federal
Highway Administration. In Coach USA, Inc.--Continuance in Control--
Salt Lake Coaches, Inc., STB Docket No. MC-F-20928 (STB served Sept.
4, 1998), Coach's continuance in control of SLC was approved upon
SLC's becoming a motor passenger carrier.
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In STB Docket No. MC-F-20936, Yellow Cab Service will be
responsible for those Coach-controlled carriers that focus on
specialized transportation services. Yellow Cab Service seeks control
of the following four motor passenger carriers: Airport Limousine
Service, Inc. (MC-315702); Pittsburgh Transportation Charter Services,
Inc. (MC-319195); Metro Cars, Inc. (MC-276823); and Kansas City
Executive Coach, Inc. (MC-203805).
Coach and the subsidiaries plan to acquire control of additional
motor passenger carriers in the coming months. Coach anticipates that
the subsidiaries will be well-positioned to aid in the assessment of
possible future acquisitions of motor passenger carriers in the
particular area in which each subsidiary functions. According to Coach,
the subsidiaries will be able to make those assessments in view of the
operations of the carriers under their control and with a view toward
developing and carrying out a strategic growth plan best suited to
their particular area. Coach asserts that, as a result of the transfer
of control to the subsidiaries, the operating carriers will become
stronger and more responsive competitors in the areas in which each
operates. Thus, the traveling public will have a higher level of
assurance of access to passenger services due to the ability of the
management of each subsidiary to coordinate the movement of vehicles
between and among the operating carriers. In addition, the traveling
public will benefit from the strategic planning and coordination by
each subsidiary, as well as the ability of management to be responsive
to the concerns, complaints and issues raised by the traveling public.
Coach certifies that none of the carriers to be acquired by the
subsidiaries holds an unsatisfactory safety rating from the U.S.
Department of Transportation; that each has sufficient liability
insurance; and none is domiciled in Mexico or owned or controlled by
persons of that country; and that approval of the transactions will not
significantly affect either the quality of the human environment or the
conservation of energy resources. Additional information may be
obtained from the applicants' representatives.
Under 49 U.S.C. 14303(b), we must approve and authorize a
transaction we find consistent with the public interest, taking into
consideration at least: (1) the effect of the transaction on the
adequacy of transportation to the public; (2) the total fixed charges
that result; and (3) the interest of affected carrier employees.
On the basis of the applications, we find that the proposed
acquisitions of control are consistent with the public interest and
should be authorized. If any opposing comments are timely filed, this
finding will be deemed vacated and, unless a final decision can be made
on the record as developed, a procedural schedule will be adopted to
reconsider the applications.11 If no opposing comments are
filed by the expiration of the comment period, this decision will take
effect automatically and will be the final Board action.
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\11\ Under revised 49 CFR 1182.6(c), a procedural schedule will
not be issued if we are able to dispose of opposition to the
application on the basis of comments and the reply.
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Board decisions and notices are available on our website at
``WWW.STB.DOT.GOV.''
This decision will not significantly affect either the quality of
the human environment or the conservation of energy resources.
It is ordered:
1. The proposed acquisitions of control are approved and
authorized, subject to the filing of opposing comments.
2. If timely opposing comments are filed, the findings made in this
decision will be deemed as having been vacated.
3. This decision will be effective on January 4, 1999, unless
timely opposing comments are filed.
4. A copy of this notice will be served on: (1) the U.S. Department
of Transportation, Office of Motor Carriers-HIA 30, 400 Virginia
Avenue, S.W., Suite 600, Washington, DC 20024; and (2) the U.S.
Department of Justice, Antitrust Division, 10th Street & Pennsylvania
Avenue, N.W., Washington, DC 20530.
Decided: November 12, 1998.
By the Board, Chairman Morgan and Vice Chairman Owen.
Vernon A. Williams,
Secretary.
[FR Doc. 98-30982 Filed 11-18-98; 8:45 am]
BILLING CODE 4915-00-P
