[Federal Register Volume 61, Number 193 (Thursday, October 3, 1996)]
[Notices]
[Pages 51742-51743]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-25364]


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DEPARTMENT OF TRANSPORTATION
Surface Transportation Board \1\
[STB Finance Docket No. 33073]


Coach USA, Inc.--Control Exemption--American Sightseeing Tours, 
Inc.; California Charters, Inc.; Texas Bus Lines, Inc.; Gulf Coast 
Transportation, Inc.; and K-T Contract Services, Inc.

AGENCY: Surface Transportation Board.
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    \1\ The ICC Termination Act of 1995, Pub. L. 104-88, 109 Stat. 
803 (1995), abolished the Interstate Commerce Commission and 
transferred certain functions to the Surface Transportation Board 
(Board) effective January 1, 1996. This notice relates to a control 
transaction that is subject to Board jurisdiction under 49 U.S.C. 
14303.

ACTION: Notice of filing of petition for exemption.

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SUMMARY: Coach USA, Inc. (Coach), a noncarrier that controls 10 motor 
passenger carriers, seeks to be exempted, under 49 U.S.C. 13541, from 
the prior approval requirements of 49 U.S.C. 14303(a)(5), to acquire 
control of five other motor passenger carriers.

DATES: Comments must be filed by November 4, 1996. Petitioner may file 
a reply by November 12, 1996.

ADDRESSES: Send an original and 10 copies of comments referring to STB 
Finance Docket No. 33073 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 
petitioner'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) 927-5660. [TDD for 
the hearing impaired: (202) 927-5721.]

SUPPLEMENTARY INFORMATION: Coach seeks an exemption to acquire stock 
control over five motor passenger carriers that operate both in 
interstate and intrastate commerce: American Sightseeing Tours, Inc., 
d/b/a ASTI (MC-252353) (primarily charter operations from the Miami/Ft. 
Lauderdale, FL area); California Charters, Inc. (CCI) (MC-241211) 
(primarily charter operations from the Los Angeles, Long Beach, and San 
Diego, CA area); Texas Bus Lines, Inc. (TBL) (MC-37640) (primarily 
charter operations from the Houston, TX area and regular-route service 
between Houston and Galveston, TX); Gulf Coast Transportation, Inc., d/
b/a Gray Line Tours of Houston (GCTI) (MC-201397) (primarily charter 
operations from Texas); and K-T Contract Services, Inc. (K-T) (MC-
218583) (primarily charter operations from the Las Vegas, NV area and 
regular-route service between Las Vegas and both Phoenix, AZ and Reno/
Carson City, NV). TBL and 50% of CCI are owned by one individual, Mr. 
Scott Keller, and TBL owns 50% of K-T.\2\
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    \2\ The stock of ASTI, CCI, TBL, and GCTI was placed in 
separate, independent voting trusts with different trustees to avoid 
any unlawful control. The stock of K-T was left as is because Coach 
will not acquire the remaining 50% of K-T's stock from Kerrville Bus 
Company, Inc., unless and until this petition is granted.
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    Coach states that each of the five carriers accounts for a 
relatively small market share, and, aside from charter

[[Page 51743]]

and special operations, operates regionally in diverse markets across 
the United States. While it controls the nation's second largest group 
of motor passenger carriers,\3\ Coach states that there is little 
competition, and no significant overlap in operations, among the 10 
carriers it now controls and the five it seeks to control. It 
acknowledges that there is some overlap in services, but states that 
this overlap will have no meaningful effect on the continued 
availability of competitive transportation.
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    \3\ In 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., STB 
Finance Docket No. 32876 (Sub-No. 1) (STB served May 3, 1996), Coach 
was exempted from the prior approval requirements of 49 U.S.C. 
14303(a)(4) to acquire control of Arrow Stage Lines, Inc. (MC-
29592); Cape Transit Corp. (MC-161678); Community Coach, Inc. (MC-
76022); Community Transit Lines, Inc. (MC-145548); Grosvenor Bus 
Lines, Inc. (MC-157317); H.A.M.L. Corp. (MC-194792); Leisure Time 
Tours (MC-142011); Suburban Management Corp. (MC-264527); Suburban 
Trails, Inc. (MC-149081); and Suburban Transit Corp. (MC-115116).
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    Following the acquisition of control, the five carriers will 
continue to operate in their respective markets, each under its own 
name and in the same basic manner as before. Coach claims that improved 
service at lower costs will result because of the coordination of 
functions, centralized management, financial support, rationalization 
of resources, and economies of scale that are anticipated from the 
common control. Coach also states that all collective bargaining 
agreements will be honored, that employee benefits will improve, and 
that no change in management personnel is planned. Additional 
information may be obtained from petitioner's representatives.

    Decided: September 25, 1996.

    By the Board, Chairman Morgan, Vice Chairman Simmons, and 
Commissioner Owen.
Vernon A. Williams,
Secretary.
[FR Doc. 96-25364 Filed 10-2-96; 8:45 am]
BILLING CODE 4915-00-P