[Federal Register Volume 63, Number 141 (Thursday, July 23, 1998)]
[Notices]
[Pages 39634-39635]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-19680]
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DEPARTMENT OF TRANSPORTATION
Surface Transportation Board
[STB Docket No. MC-F-20923]
Coach USA, Inc.--Control--Kansas City Executive Coach, Inc. and
Le Bus, Inc.
AGENCY: Surface Transportation Board.
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 Kansas City Executive
Coach, Inc. (Executive) and Le Bus, Inc. (Le Bus) (collectively, the
Acquired Carriers), both motor carriers of passengers. 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 are due by September 8, 1998. Applicant may reply by
September 22, 1998. If no comments are received by September 8, 1998,
this notice is effective on that date.
ADDRESSES: Send an original and 10 copies of any comments referring to
STB No. MC-F-20923 to: Surface Transportation Board, Office of the
Secretary, Case Control Unit, 1925 K Street, N.W., Washington, DC
20423-
[[Page 39635]]
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, N.W., Washington, DC 20036.
FOR FURTHER INFORMATION CONTACT: Joseph H. Dettmar, (202) 565-1600.
[TDD for the hearing impaired: (202) 565-1695.]
SUPPLEMENTARY INFORMATION: Coach currently controls 45 motor passenger
carriers.1 In this transaction, Coach seeks to acquire
direct control of Executive 2 and Le Bus 3 by
acquiring all of the outstanding stock of each of these carriers.
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\1\ In addition to the instant application, Coach has one other
pending control application: 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., STB Docket No. MC-F-20921
(STB served June 19, 1998), where Coach seeks to acquire control of
nine additional motor passenger carriers.
\2\ Executive is a Missouri corporation. It holds federally-
issued operating authority in Docket MC-203805, as well as
intrastate authority issued by the Missouri Department of
Transportation. The carrier operates a fleet of 15 motorcoaches;
employs approximately 35 drivers; and, together with affiliated
companies, earned gross annual revenues in fiscal 1997 of
approximately $12 million. Prior to the transfer of its stock into a
voting trust, it had been owned by Mr. William J. George and William
M. George.
\3\ Le Bus is a Florida corporation. It holds federally-issued
operating authority in Docket MC-210900. The carrier operates a
fleet of approximately 40 motorcoaches; employs approximately 50
persons; and in fiscal 1997 earned gross revenues of $5.2 million.
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Applicant submits that there will be no transfer of federal or
state operating authorities held by the Acquired Carriers. Following
consummation of the control transactions, these 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-owned carrier. Applicant submits that each of the Acquired
Carriers is relatively small and each faces substantial competition
from other bus companies and from 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 each
carrier will benefit from the lower insurance premiums negotiated by
Coach and from volume discounts for equipment and fuel. Applicant
indicates that Coach will provide each carrier 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 operating
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. Applicant also
states that the proposed transaction will benefit the employees of each
carrier and that all collective bargaining agreements will be honored
by Coach. 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.
Applicant certifies that: (1) neither carrier holds an
unsatisfactory safety rating from the U.S. Department of
Transportation; (2) each carrier has sufficient liability insurance;
(3) neither carrier is domiciled in Mexico nor 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 action 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 September 8, 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: July 16, 1998.
By the Board, Chairman Morgan and Vice Chairman Owen.
Vernon A. Williams,
Secretary.
[FR Doc. 98-19680 Filed 7-22-98; 8:45 am]
BILLING CODE 4915-00-P 1
