[Federal Register Volume 63, Number 39 (Friday, February 27, 1998)]
[Notices]
[Pages 10071-10072]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-5109]
[[Page 10071]]
-----------------------------------------------------------------------
DEPARTMENT OF TRANSPORTATION
Surface Transportation Board
[STB Docket No. MC-F-20916] 1
Coach USA, Inc., and Coach XXIII Acquisition, Inc.--Control--
Americoach Tours, Ltd.; Keeshin Charter Services, Inc.; Keeshin
Transportation, L.P.; Niagara Scenic Bus Lines, Inc.; and Pawtuxet
Valley Bus Lines
AGENCY: Surface Transportation Board.
ACTION: Notice tentatively approving finance transaction.
-----------------------------------------------------------------------
SUMMARY: Coach USA, Inc. (Coach), a noncarrier, and its wholly owned
noncarrier subsidiary, Coach XXIII Acquisition, Inc. (Coach
Acquisition) (collectively, applicants), filed an application under 49
U.S.C. 14303 to acquire control of Americoach Tours, Ltd. (Americoach),
Keeshin Charter Services, Inc. (Keeshin), Keeshin Transportation, L.P.
(KTLP), Niagara Scenic Bus Lines, Inc. (Niagara), and Pawtuxet Valley
Bus Lines (Pawtuxet), all motor passenger carriers. Persons wishing to
oppose the application must follow the rules under 49 CFR part 1182,
subpart B. The Board has tentatively approved the transaction, and, if
no opposing comments are timely filed, this notice will be the final
Board action.
\1\ This proceeding was originally docketed as STB Finance
Docket No. 33534.
---------------------------------------------------------------------------
DATES: Comments are due by April 13, 1998. Applicants may file a reply
by May 4, 1998. If no comments are received by April 13, 1998, this
notice is effective on that date.
ADDRESSES: Send an original and 10 copies of comments referring to STB
Docket No. MC-F-20916 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: Coach currently controls 35 motor passenger
carriers. 2 In this transaction, it seeks to acquire direct
control of Americoach, 3 Niagara, 4 and Pawtuxet,
5 by acquiring all of the outstanding stock of these
carriers, and indirect control of Keeshin 6 and KTLP,
7 through the acquisition, by Coach Acquisition,
8 of all of the outstanding stock of Keeshin and the general
partnership interest in KTLP. According to applicants, the stock (or,
in the case of KTLP, the partnership interest) of each of the carriers
to be acquired is currently held in separate, independent voting trusts
to avoid any unlawful control pending disposition of this proceeding.
---------------------------------------------------------------------------
\2\ In addition to the instant proceeding in which it seeks to
acquire control of five additional motor passenger carriers, Coach
has two pending proceedings: Coach USA, Inc.--Control Exemption--
Browder Tours, Inc. and El Expreso, Inc., STB Finance Docket No.
33506 (STB filed Oct. 31, 1997), in which it seeks to acquire
control of two additional motor passenger carriers; and Coach USA,
Inc.--Control--Airport Limousine Service, Inc. and Black Hawk-
Central City Ace Express, Inc., STB MC-F-20917 (STB filed Feb. 12,
1998), in which it seeks to acquire control of two additional motor
passenger carriers.
\3\ Americoach is a Tennessee corporation. It holds federally
issued operating authority in MC-212649 and intrastate operating
authority issued by the Tennessee Public Service Commission.
Americoach provides charter operations primarily in Tennessee,
Arkansas, Mississippi and Missouri, with occasional operations in
other states. The carrier operates 25 buses; it has 51 employees;
and it earned revenues of approximately $2.9 million in 1996. Prior
to the transfer of its stock into a voting trust, it had been owned
by Shearon L. Breazeale and Philip L. Breazeale.
\4\ Niagara is a New York corporation. It holds federally issued
operating authority in MC-30787, intrastate operating authority
issued by the New York Department of Transportation, and authority
issued by the Province of Ontario, Canada. Niagara provides regular-
route commuter service along routes within western New York and
charter and tour operations between points in western New York and
points in the United States. The carrier operates 21 buses; it has
75 employees; and it earned revenues of approximately $6.6 million
in 1996. Prior to the transfer of its stock into a voting trust, it
had been owned by Keith A. Fisher and Molly J. Schmitt.
\5\ Pawtuxet is a Rhode Island corporation. It holds federally
issued operating authority in MC-115432, intrastate operating
authority in Connecticut, and operating authority within the
Province of New Brunswick, Canada. Pawtuxet provides special and
charter operations between points in Massachusetts, Connecticut, and
Rhode Island and other points in the United States. The carrier
operates 30 buses; it has 57 employees; and it earned revenues of
approximately $2.5 million in 1996. Prior to the transfer of its
stock into a voting trust, it had been owned by Ernest A.
Archambault and Stephen P. Archambault.
\6\ Keeshin is an Illinois corporation. It holds federally
issued operating authority in MC-118044. Keeshin provides charter,
group tours and shuttle operations from points in Illinois to
various points in the United States. The carrier operates 47 buses;
it has 102 employees; and it earned gross revenues of approximately
$13.03 million in 1996. Prior to the transfer of its stock into a
voting trust, it had been owned by Paul A. Keeshin.
\7\ KTLP is a Delaware limited partnership. It holds federally
issued operating authority in MC-263222. KTLP provides charter and
special operations between points in the United States (except
Hawaii) and commuter and shuttle bus services in the Chicago area.
KTLP also owns a limited partnership interest in O'Hare Shuttle
Partners, L.P., a non-federally regulated entity, which provides
shuttle bus service at Chicago's O'Hare Airport. The carrier
operates 18 buses; it has 75 employees; and it earned revenues of
approximately $3.6 million in the first 9 months of 1996. Prior to
the transfer of the general partnership interest in KTLP into a
voting trust, the general partnership interest had been held by
Keeshin. Paul A. Keeshin Trust, Brett Keeshin O'Hare Trust, and Neal
Keeshin O'Hare Trust also held limited partnership interests in
KTLP.
\8\ Coach Acquisition is a Delaware corporation that was
established for the purpose of serving as a holding company with
respect to the transaction involving Keeshin and KTLP.
---------------------------------------------------------------------------
Applicants submit that there will be no transfer of any federal or
state operating authorities held by the acquired carriers. Following
the consummation of the control transactions, each of the acquired
carriers will continue operating in the same manner as before and,
according to applicants, granting the application will not reduce
competitive options available to the traveling public. They assert that
the acquired carriers do not compete to any meaningful degree with one
another or with any Coach-owned carrier. Applicants submit that each of
the acquired carriers is relatively small and each faces substantial
competition from other bus companies and transportation modes.
Applicants also submit 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, applicants claim that the
carriers 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 will provide each of the carriers to be
acquired with centralized legal and accounting functions and
coordinated purchasing services. In addition, they state that vehicle
sharing arrangements will be facilitated through Coach to ensure
maximum use and efficient operation of equipment and that, with Coach's
assistance, coordinated driver training services will be provided,
enabling each carrier to allocate driver resources in the most
efficient manner possible. Applicants also state that the proposed
transaction will benefit the employees of the acquired carriers and
that all collective bargaining agreements will be honored by Coach.
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 further enhancing the benefits resulting from
these control transactions.
[[Page 10072]]
Applicants certify that the pertinent carrier parties hold
satisfactory safety ratings from the U.S. Department of Transportation;
that they have sufficient liability insurance; that they are neither
domiciled in Mexico nor owned or controlled by persons of that country;
and that approval of the transaction will not significantly affect
either the quality of the human environment or the conservation of
energy resources. Additional information may be obtained from
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 application, we find that the proposed
acquisition of control is consistent with the public interest and
should be authorized. If opposing comments are timely filed, this
finding will be deemed vacated and a procedural schedule will be
adopted to reconsider the application. 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.
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 acquisition of control is 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 vacated.
3. This decision will be effective on April 13, 1998, unless timely
opposing comments are filed.
4. A copy of this notice will be served on the U.S. Department of
Justice, Antitrust Division, 10th Street & Pennsylvania Avenue, N.W.,
Washington, DC 20530.
Decided: February 20, 1998.
By the Board, Chairman Morgan and Vice Chairman Owen.
Vernon A. Williams,
Secretary.
[FR Doc. 98-5109 Filed 2-26-98; 8:45 am]
BILLING CODE 4915-00-P
