[Federal Register Volume 62, Number 48 (Wednesday, March 12, 1997)]
[Notices]
[Pages 11518-11519]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-6200]


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DEPARTMENT OF TRANSPORTATION
Surface Transportation Board
[STB Finance Docket No. 33343]


Coach USA, Inc., Control Exemption, Progressive Transportation 
Services, Inc.; Powder River Transportation Services, Inc.; Worthen Van 
Service, Inc.; and PCSTC, Inc.

AGENCY: Surface Transportation Board.

ACTION: Notice of filing of petition for exemption.

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SUMMARY: Coach USA, Inc. (Coach), a noncarrier that controls 15 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 four additional motor passenger carriers.

DATES: Comments must be filed by April 11, 1997. Petitioner may file a 
reply by April 21, 1997.

ADDRESSES: Send an original and 10 copies of comments referring to STB 
Finance Docket No. 33343 to: Office of the Secretary, Case Control 
Unit, Surface Transportation Board, 1925 K Street, N.W., Washington, 
D.C. 20423-0001. Also, send one copy of comments to petitioner's 
representatives: Betty Jo Christian and David H. Coburn, Steptoe & 
Johnson LLP, 1330 Connecticut Avenue, N.W., Washington D.C. 20036.

FOR FURTHER INFORMATION CONTACT: Joseph H. Dettmar, (202) 565-1600 [TDD 
for the hearing impaired: (202) 565-1695].

SUPPLEMENTARY INFORMATION: Coach seeks an exemption to acquire stock 
control over four additional motor carriers of passengers that operate 
in interstate and intrastate commerce: Progressive Transportation 
Services, Inc. (PTS) (MC-247074) (primarily charter operations and 
regular-route service in New York State); Powder River Transportation 
Services, Inc. (PRTS) (MC-161531) (primarily charter operations and 
regular-route service in Wyoming, Colorado, Montana, and South Dakota); 
Worthen Van Service, Inc. (WVS) (MC-142573) (charter operations in 
Wyoming); and PCSTC, Inc., d/b/a Pacific Coast Sightseeing/Gray Line of 
Anaheim-Los Angeles (PCSTC) (MC-184852) (primarily charter operations 
and regular-route service in California). 1 According to 
petitioner, PRTS and WVS largely share common stock ownership, as each 
is controlled by the same family. Coach states that each of the four 
carriers accounts for a relatively small market share and operates 
regionally in diverse markets across the United States.
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    \1\ Petitioner indicates that the stock of PTS, PRTS, WVS, and 
PCSTC was placed in separate, independent voting trusts with 
different trustees, with the intent of avoiding any unlawful 
control.
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    Coach indicates that it currently controls the nation's second 
largest group of motor passenger carriers. In May 1996, Coach acquired 
control of the following 10 motor passenger carriers: 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).2 In November 1996 Coach acquired control of the following

[[Page 11519]]

five motor passenger carriers: American Sightseeing Tours, Inc. d/b/a 
ASTI (MC-252353); California Charters, Inc. (MC-241211); Texas Bus 
Lines, Inc. (MC-37640); Gulf Coast Transportation, Inc. d/b/a Gray Line 
Tours of Houston (MC-201397); and K-T Contract Services, Inc. (MC-
218583).3 Petitioner asserts that there is little competition, and 
no significant overlap in operations, among the 15 carriers it now 
controls and the four it seeks to control. It acknowledges that there 
is some overlap in service but states that this overlap will have no 
meaningful effect on the continued availability of competitive 
transportation.
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    \2\ See 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).
    \3\ See 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., STB 
Finance Docket No. 33073 (STB served Nov. 8, 1996).
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    Following the acquisition of control, Coach indicates that each of 
the four carriers will continue to operate in its respective market, 
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.
    A copy of this notice will be served on the Department of Justice, 
Antitrust Division, 10th Street & Pennsylvania Avenue, N.W., 
Washington, D.C. 20530.

    Decided: February 26, 1997.

    By the Board, Chairman Morgan and Vice Chairman Owen.
Vernon A. Williams,
Secretary.
[FR Doc. 97-6200 Filed 3-11-97; 8:45 am]
BILLING CODE 4915-00-P