[Federal Register Volume 61, Number 60 (Wednesday, March 27, 1996)]
[Notices]
[Pages 13568-13569]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-7423]



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DEPARTMENT OF TRANSPORTATION
    \1\ The ICC Termination Act of 1995, Pub. L. No. 104-88, 109 
Stat. 803, which was enacted on December 29, 1995, and took effect 
on January 1, 1996, abolished the Interstate Commerce Commission and 
transferred certain functions to the Surface Transportation Board 
(Board). This notice relates to an exemption of a motor passenger 
carrier acquisition of control transaction that is subject to Board 
jurisdiction under 49 U.S.C. 13541 and 14303.
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[STB Finance Docket No. 32876 (Sub-No. 1)] \1\


Notre Capital Ventures II, LLC, and Coach USA, Inc.--Control 
Exemption--Arrow Stage Lines, Inc.; Cape Transit Corp.; Community 
Coach, Inc.; Community Transit Lines, Inc.; Grosvenor Bus Lines, Inc.; 
H.A.M.L. Corp.; Leisure Time Tours; Suburban Management Corp.; Suburban 
Trails, Inc.; and Suburban Transit Corp.

AGENCY: Surface Transportation Board, DOT.

ACTION: Notice of Filing of Petition for Exemption.

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[[Page 13569]]


SUMMARY: Notre Capital Ventures II, LLC, and Coach USA, Inc., both 
noncarriers, seek an exemption, under 49 U.S.C. 13541, from the prior 
approval requirements of 49 U.S.C. 14303(a)(4), to acquire control of 
10 motor common carriers of passengers. Petitioners request expedition, 
asking that the exemption become effective no later than May 3, 1996.

DATES: Comments must be filed by April 11, 1996. Petitioners may file a 
reply by April 16, 1996.

ADDRESSES: Send an original and 10 copies of comments referring to STB 
Finance Docket No. 32876 (Sub-No. 1) to: Surface Transportation Board, 
Office of the Secretary, Case Control Branch, 1201 Constitution Avenue, 
NW., Washington, DC 20423. In addition, send one copy of comments to 
petitioners' representatives: Betty Jo Christian and David H. Coburn, 
Steptoe & Johnson LLP, 1330 Connecticut Ave., NW., Washington, D.C. 
20036.

FOR FURTHER INFORMATION CONTACT: Beryl Gordon, (202) 927-5610. [TDD for 
the hearing impaired: (202) 927-5721.]

SUPPLEMENTARY INFORMATION: Petitioners, Notre Capital Ventures II, LLC, 
and Coach USA, Inc., seek an exemption to acquire, through stock 
purchase, control over 10 motor carriers of passengers: Arrow Stage 
Lines, Inc.; Cape Transit Corp.; Community Coach, Inc. (Coach); 
Community Transit Lines, Inc. (Community Transit); Grosvenor Bus Lines, 
Inc.; H.A.M.L. Corp.; Leisure Time Tours; Suburban Management Corp. 
(Management); Suburban Trails, Inc. (Trails); and Suburban Transit Corp 
(Suburban Transit).
    Petitioners also request that the exemption extend to the possible 
common control of Orange, Newark, Elizabeth Bus, Inc. (ONE Bus). ONE 
Bus is not part of the proposed transaction but is owned in part by 
persons who now control Coach and Community Transit, and who will own a 
small percentage of the new, consolidated entity after the transaction 
is consummated.
    Petitioners request that this exemption become effective no later 
than May 3, 1996, to allow them to synchronize the exemption with a 
Securities and Exchange Commission registration statement that is 
intended to authorize an initial public offering (IPO) of $45 million 
in stock to be issued in connection with the proposed transaction and 
future transactions of this nature. Petitioners state that a delay 
could increase their costs, make it impossible to complete the IPO as 
projected, and otherwise jeopardize their entire plan.
    Petitioners state that the 10 carriers they seek to control are 
relatively small and operate in diverse markets across the country. The 
10 carriers generally have no connection or control relationship with 
one another, except that Coach and Community Transit are under common 
control, and H.A.M.L., Management, Trails, and Suburban Transit are 
under common control. Petitioners state that the only significant 
competition among the 10 carriers is in the limited area of charter and 
special operations.
    Aside from charter and special operations, petitioners state that 
the 10 carriers operate regionally with a relatively small market 
share. While acknowledging that there are some overlapping routes, 
petitioners note that the 10 carriers do not compete with each other to 
any significant degree. Although several of them operate commuter bus 
services between New York City and points in New Jersey, their routes 
(with the exception of those operated by carriers already under common 
control) extend in different directions and serve different termini.
    Petitioners assert that, in each of their respective markets, the 
10 carriers confront significant competitive pressure from other bus 
lines and other transportation modes, including commercial airlines, 
Amtrak, commuter rail services, and the private automobile. Further, 
petitioners state that the 10 bus companies, whether considered as 
individual entities or as consolidated into what would be the nation's 
second largest group of passenger carriers, cannot compare, much less 
compete on any substantial basis, with Greyhound Lines, Inc., the only 
bus company providing nationwide, regular-route bus service.
    Following the acquisition of control, the 10 carriers allegedly 
will continue to operate in their respective markets, each in its own 
name and in the same basic manner as before. Petitioners claim that the 
10 carriers will benefit from centralized management, coordination of 
functions, financial support, and economies of scale and that improved 
services at lower costs will result.
    Petitioners assert that prior review and approval of the 
transaction under 49 U.S.C. 14303 are not necessary to carry out the 
transportation policy of 49 U.S.C. 13101, that regulation is not needed 
to protect shippers from the abuse of market power, that the 
transaction is of limited scope, and that exempting the transaction 
from regulation is in the public interest.
    Additional information may be obtained from petitioners' 
representatives.

    Decided: March 21, 1996.

    By the Board, Chairman Morgan, Vice Chairman Simmons, and 
Commissioner Owen.
Vernon A. Williams,
Secretary.
[FR Doc. 96-7423 Filed 3-26-96; 8:45 am]
BILLING CODE 4915-00-P