[Federal Register Volume 63, Number 224 (Friday, November 20, 1998)]
[Notices]
[Pages 64536-64537]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-31093]
-----------------------------------------------------------------------
DEPARTMENT OF TRANSPORTATION
Surface Transportation Board
[STB Docket Nos. S. MC-F-20937 and MC-F-20939] \1\
Coach USA, Inc., and Coach USA Northeast, Inc.--Control--Bonanza
Bus Lines, Inc. and Coach USA North Central, Inc.--Control--Central Cab
Company and Mountaineer Coach, Inc.
AGENCY: Surface Transportation Board.
---------------------------------------------------------------------------
\1\ These proceedings are not consolidated. A single decision is
being issued for administrative convenience.
ACTION: Notice tentatively approving finance transactions.
-----------------------------------------------------------------------
SUMMARY: Coach USA, Inc. (Coach), a noncarrier, and its wholly owned
noncarrier subsidiaries, Coach USA Northeast, Inc. (Northeast), and
Coach USA North Central, Inc. (North Central) (collectively,
applicants), filed an application \2\ under 49 U.S.C. 14303 for
Northeast to acquire control of Bonanza Bus Lines, Inc. (Bonanza), a
motor passenger carrier, and for North Central to acquire control of
Central Cab Company (Central Cab) and Mountaineer Coach, Inc.
(Mountaineer), both motor passenger carriers. Persons wishing to oppose
the applications must follow the rules under 49 CFR 1182.5 and
1182.8.\3\ The Board has tentatively approved the transactions, and, if
no opposing comments are timely filed, this notice will be the final
Board action.
---------------------------------------------------------------------------
\2\ Applicants filed a single pleading. Although the proposed
control transactions are unrelated, applicants sought approval in a
single application which embraced both transactions. Each
transaction has been separately docketed.
\3\ 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,
---------------------------------------------------------------------------
this notice is effective on that date.
ADDRESSES: Send an original and 10 copies of any comments referring to
STB Docket No. MC-F-20937, et al. to: Surface Transportation Board,
Office of the Secretary, Case Control Unit, 1925 K Street, NW,
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, NW, Washington, DC
20036.
FOR FURTHER INFORMATION CONTACT: Beryl Gordon, (202) 565-1600. [TDD for
the hearing impaired: (202) 565-1695).]
SUPPLEMENTARY INFORMATION: In Coach USA, Inc., and Coach USA North
Central, Inc.--Control--Nine Motor Passenger Carriers, STB Docket No.
MC-F-20931, et al. (STB served Nov. 19, 1998), we approved, subject to
comments, Coach's transfer of direct control of Coach-controlled motor
passenger carriers to six noncarrier subsidiaries: North Central,
Northeast, Coach USA South Central, Inc., Coach USA Southeast, Inc.,
Coach USA West, Inc., and Yellow Cab Service Corporation. While Coach
will remain the sole owner of all of the stock of the subsidiaries, and
will indirectly control the operating carriers, the subsidiaries will
directly control the existing and future operating carriers of Coach.
Coach currently controls 73 motor passenger carriers. In STB Docket
No. MC-F-20937, Coach and Northeast seek control of Bonanza.\4\ In STB
Docket No.
[[Page 64537]]
MC-F-20939, Coach and North Central seek control of Central Cab \5\ and
Mountaineer.\6\ The acquisitions of control will be accomplished
through the acquisition of all of the stock of each carrier. According
to applicants, the stock is currently held in independent voting trusts
to avoid any unlawful control pending disposition of this proceeding.
---------------------------------------------------------------------------
\4\ Bonanza is a Rhode Island corporation. It holds federally
issued operating authority in Docket No. MC-13028, which authorizes
it to provide regular-route operations between various points in New
England and between points in New England to points in New York, and
charter and special operations between points in the United States.
It also holds authority issued by the Rhode Island Division of
Public Utitilies and Carriers, the Connecticut Department of
Transportation, and the Massachusetts Department of Public Utilities
to conduct intrastate operations. It operates 54 buses; employs
approximately 150 persons; and earned gross annual revenues in
fiscal year 1997 of approximately $19 million. Prior to the transfer
of its stock into a voting trust, it was owned by George M. Sage.
\5\ Central Cab is a Pennsylvania corporation. It holds
federally issued operating authority in Docket No. MC-133058, which
authorizes it to provide regular-route common carrier charter and
special operations between points in the United States (except
Hawaii). It also holds authority issued by the Pennsylvania Public
Utility Commission, the Public Service Commission of West Virginia,
and the Public Utilities Commission of Ohio to conduct intrastate
operations. It operates approximately 34 motorcoaches, 11 school
buses, and 9 vans; employs 96 persons; and earned gross annual
revenues in fiscal year 1997 of approximately $4.7 million. Prior to
the transfer of its stock into a voting trust, it was owned by John
L. McNelly.
\6\ Mountaineer is a Pennsylvania corporation. It holds
federally issued operating authority in Docket No. MC-229627, which
authorizes it to provide charter and special operations between
points in the United States (except Alaska and Hawaii). It also
holds authority issued by the Public Utilities Commission of West
Virginia to conduct intrastate operations. It operates 6
motorcoaches and 2 vans; employs 28 persons; and earned gross annual
revenues in fiscal year 1997 of approximately $1.1 million. Prior to
the transfer of its stock into a voting trust, it was owned by John
L. McNelly.
---------------------------------------------------------------------------
Coach submits that there will be no transfer of any federal or
state operating authorities held by any of the carriers to be acquired.
Following the consummation of the control transactions, each of these
carriers will continue operating in the same manner as before and,
according to Coach, granting the applications will not reduce
competitive options available to the traveling public. Coach asserts
that the carriers to be acquired do not compete to any meaningful
degree with one another, are relatively small, and each faces
substantial competition from other bus companies and transportation
modes.
Coach also submits that granting the application will produce
substantial benefits, including interest cost savings from the
restructuring of debt and reduced operating costs from Coach's enhanced
volume purchasing power. Specifically, Coach claims that each carrier
to be acquired will benefit from the lower insurance premiums
negotiated by Coach and from volume discounts for equipment and fuel.
Applicants indicate that Coach or the relevant subsidiary will provide
each of the carriers to be acquired with centralized legal and
accounting functions and coordinated purchasing services. In addition,
applicants state that vehicle sharing arrangements will be facilitated
to ensure maximum use and efficient operation of equipment and that
coordinated driver training services will be provided. Applicants also
state that the proposed transactions will benefit the employees of each
of the carriers to be acquired and that all collective bargaining
agreements will be honored by Coach and the subsidiaries.
Coach plans to acquire control of additional motor passenger
carriers in the coming months. It asserts that the financial benefits
and operating efficiencies will be enhanced further by these subsequent
transactions. Over the long term, Coach states that it will provide
centralized marketing and reservation services for the bus firms that
it controls, thereby enhancing the benefits resulting from these
control transactions.
Applicants certify that: (1) the jurisdictional threshold has been
met with respect to the transactions that are the subject of the
applications; \7\ (2) none of the carriers to be acquired holds an
unsatisfactory safety rating from the U.S. Department of
Transportation; \8\ (3) each of the carriers to be acquired has
sufficient liability insurance; (4) none of the carriers to be acquired
is domiciled in Mexico or owned or controlled by persons of that
country; and (5) 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.
---------------------------------------------------------------------------
\7\ See 49 CFR 1182.2(a)(5).
\8\ Bonanza and Central Cab each hold a satisfactory rating;
Mountaineer has not been rated.
---------------------------------------------------------------------------
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.\9\ 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.
---------------------------------------------------------------------------
\9\ 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.
---------------------------------------------------------------------------
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, SW, Suite 600, Washington, DC 20024; and (2) the U.S.
Department of Justice, Antitrust Division, 10th Street & Pennsylvania
Avenue, NW, Washington, DC 20530.
Decided: November 12, 1998.
By the Board, Chairman Morgan and Vice Chairman Owen.
Vernon A. Williams,
Secretary.
[FR Doc. 98-31093 Filed 11-19-98; 8:45 am]
BILLING CODE 4915-00-P
