[Federal Register Volume 63, Number 118 (Friday, June 19, 1998)]
[Notices]
[Pages 33760-33761]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-16392]
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DEPARTMENT OF TRANSPORTATION
Surface Transportation Board
[STB Docket No. MC-F-20921]
Coach USA, Inc.--Control--Blue Bird Coach Lines, Inc.; Butler
Motor Transit, Inc.; Gad-About Tours, Inc.; P&S Transportation, Inc.;
Pittsburgh Transportation Charter Services, Inc.; Syracuse and Oswego
Coach Lines, Inc.; Tippett Travel, Inc., d/b/a Marie's Charter Bus
Lines; Tucker Transportation Co., Inc.; and Utica-Rome Bus Co., Inc.
AGENCY: Surface Transportation Board, DOT.
ACTION: Notice tentatively approving finance transaction.
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SUMMARY: Coach USA, Inc. (Coach), a noncarrier, filed an application
under 49 U.S.C. 14303 to acquire control of Blue Bird Coach Lines, Inc.
(Blue Bird), Butler Motor Transit, Inc. (Butler), Gad-About Tours, Inc.
(Gad-About), P&S Transportation, Inc. (P&S), Pittsburgh Transportation
Charter Services, Inc. (PTCS), Syracuse and Oswego Coach Lines, Inc.
(S&O), Tippett Travel, Inc., d/b/a Marie's Charter Bus Lines (Tippett),
Tucker Transportation Co., Inc. (Tucker), and Utica-Rome Bus Co., Inc.
(Utica-Rome), all motor passenger carriers. Persons wishing to oppose
the application must follow the rules under 49 CFR part 1182, subparts
B and C. The Board has tentatively approved the transaction, and, if no
opposing comments are timely filed, this notice will be the final Board
action.
DATES: Comments must be filed by August 3, 1998. Applicant may file a
reply by August 24, 1998. If no comments are filed by August 3, 1998,
this notice is effective on that date.
ADDRESSES: Send an original and 10 copies of comments referring to STB
Docket No. MC-F-20921 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 applicant's
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: Coach currently controls 45 motor passenger
carriers. In this transaction, it seeks to acquire direct control of
Blue Bird,1 Butler,2 Gad-About,3
P&S,4 PTCS,5 S&O,6
Tippett,7 Tucker,8 and Utica-Rome 9 by
acquiring all of the outstanding stock of these carriers. According to
applicant, the stock of
[[Page 33761]]
each of these carriers is currently held in independent voting trusts
to avoid any unlawful control pending disposition of this proceeding.
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\1\ Blue Bird is a New York corporation. It holds federally
issued operating authority in MC-108531, intrastate operating
authority issued by the New York Department of Transportation
(NYDOT), the Pennsylvania Public Utilities Commission (PAPUC), the
New Jersey Department of Transportation, and the Ohio Public
Utilities Commission (OHPUC), and authority issued by the Province
of Ontario, Canada. The carrier operates 127 motorcoaches, 21 school
buses and 8 vans; and it earned revenues of approximately $14.1
million in Fiscal Year (FY) 1996. Prior to the transfer of its stock
into a voting trust, it had been owned by Louis A. Magnano.
\2\ Butler is a Pennsylvania corporation. It holds federally
issued operating authority in MC-126876 and intrastate authority
issued by the PAPUC. The carrier operates 28 buses and 3 sedans; it
has 68 employees; and it earned revenues of approximately $4.7
million in FY 1996. Prior to the transfer of its stock into a voting
trust, it had been owned by William G. Kaylor, Robert M. Kaylor and
Thomas M. Kaylor. Prior to the establishment of a voting trust,
Butler owned all of the stock of Gad-About, which Coach is also
proposing to acquire in this transaction.
\3\ Gad-About is an Ohio corporation. It holds federally issued
operating authority in MC-198451 and intrastate authority issued by
the OHPUC. The carrier operates 3 buses; it has 14 employees; and it
earned revenues of approximately $1.9 million in FY 1996. Prior to
the transfer of its stock into a voting trust, it had been owned by
Butler.
\4\ P&S is a Florida corporation. It holds federally issued
operating authority in MC-255382. The carrier operates 30 buses; it
has 58 employees; and it earned revenues of approximately $3.7
million in FY 1996. Prior to the transfer of its stock into a voting
trust, it was owned by Daniel G. Schambon.
\5\ PTCS is a Delaware corporation. It holds federally issued
operating authority in MC-319195. The carrier operates 400 vehicles;
it has 260 employees; and, together with affiliated companies, it
earned revenues of approximately $13 million in FY 1997. Prior to
the transfer of its stock into a voting trust, it had been owned by
Tyburn Limited, a noncarrier.
\6\ S&O is a New York corporation. It holds federally issued
operating authority in MC-117805 and intrastate authority issued by
the NYDOT. The carrier operates 14 buses; it has 26 employees; and
it earned revenues of approximately $1.7 million in 1997. Prior to
the transfer of its stock into a voting trust, it had been owned by
Russell Ferdinand. The carrier is affiliated through common
ownership with Utica-Rome.
\7\ Tippett is a Florida corporation. It holds federally issued
operating authority in MC-174043. The carrier operates 17 buses, 3
minibuses, and 1 limousine; it has 38 employees; and it earned
revenues of approximately $4.4 million for the fiscal year ending
June 30, 1997. Prior to the transfer of its stock into a voting
trust, it was owned by Marie Louise Tippett.
\8\ Tucker is a Florida corporation. It holds federally issued
operating authority in MC-223424. The carrier operates 7 buses; it
has 24 employees; and it earned revenues of approximately $650,000
for the fiscal year ending May 31, 1997. Prior to the transfer of
its stock into a voting trust, it was owned by Benjamin C. Early.
\9\ Utica-Rome is a New York corporation. It holds federally
issued operating authority in MC-7914 and intrastate operating
authority issued by the NYDOT. The carrier operates 13 buses; it has
37 employees; and it earned revenues of approximately $1.6 million
in 1997. Prior to the transfer of its stock into a voting trust, it
was owned by Russell Ferdinand, who also owned all of the stock of
S&O.
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Applicant submits that there will be no transfer of any federal or
state operating authorities held by the acquired carriers. Following
the consummation of the control transaction, each of the acquired
carriers will continue operating in the same manner as before and,
according to applicant, granting the application will not reduce
competitive options available to the traveling public. Applicant
asserts that the acquired carriers do not compete with one another or,
to any meaningful degree, with any other Coach-controlled company.
Applicant submits that each of the acquired carriers is relatively
small and each faces substantial competition from other bus companies
and other transportation modes.
Applicant 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, applicant claims that the
carriers to be acquired will benefit from lower insurance premiums
negotiated by Coach and from volume discounts for equipment and fuel.
Applicant indicates that Coach will provide each of the carriers to be
acquired with centralized legal and accounting functions and
coordinated purchasing services. In addition, applicant states that
vehicle sharing arrangements will be facilitated through Coach to
ensure maximum use and efficient operation of equipment and that
coordinated driver training services will be provided. Applicant also
states 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 enhancing the benefits resulting from these
control transactions.
Applicant certifies that: (1) Blue Bird, Butler, Gad-About, and P&S
hold satisfactory safety ratings from the U.S. Department of
Transportation (DOT) and that PTCS, S&O, Tippett, Tucker, and Utica-
Rome have not been rated by DOT; (2) each of the acquired carriers has
sufficient liability insurance; (3) none of the acquired carriers is
either domiciled in Mexico or owned or controlled by persons of that
country; and (4) 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
applicant's 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 any 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.
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 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 August 3, 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, NW,
Washington, DC 20530.
Decided: June 10, 1998.
By the Board, Chairman Morgan and Vice Chairman Owen.
Vernon A. Williams,
Secretary.
[FR Doc. 98-16392 Filed 6-18-98; 8:45 am]
BILLING CODE 4915-00-P
